Externe Publikationen

Climate finance solutions for climate-vulnerable developing countries

Volz, Ulrich
Externe Publikationen (2025)

in: Dina Azhgaliyeva / Dil B. Rahut / Tetsushi Sonobe (eds.), Strategies for climate resilience and equity in developing Asia and the Pacific, Tokyo: Asian Development Bank Institute, 113-136.

DOI: https://doi.org/10.56506/QHNJ3612
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Anthropogenic climate change is a threat to public finances and economic development. Climate vulnerable countries need to urgently invest in climate resilience and adaptation and climate-proof their economies and public finance. However, current climate finance flows are far too small, resulting in significant investment gaps. Moreover, public finances are stretched in both developing economies—many of which are facing sovereign debt distress—and in developed economies. To avoid countries failing on climate action and hence development, concerted efforts are needed to scale up adaptation and mitigation finance, going beyond solutions that have been on the table for long without delivering results. Against this backdrop, this chapter reviews the climate financing challenges facing climate-vulnerable developing countries and puts forward innovative recommendations for scaling up domestic and international climate finance.

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