On the basis of continuing climate change, the financing of emission reduction and adaptation measures is becoming ever more important. As part of the Copenhagen Accord, the international community has agreed to provide an annual 100 billion US dollars up until 2020. According to experts, the actual demand for funds could be much higher. The funds required will have to come not only from public resources, but also to a large extent from the private sector. In order to promote this kind of investment in energy efficiency, renewable energies and adaptation, a suitable political, regulatory and economic investment climate will be required. This would include political and monetary stability as well as investment security, the dismantling of market-distorting subsidies and targeted funding programmes.
Whilst many countries are taking sporadic steps towards the creation of the appropriate parameters for climate finance, there remains a great deal to be done on a global level. Creating stakeholder networks and promoting the international exchange of lessons learned can encourage the necessary political reforms at the local level. The Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) project can contribute to these reforms by means of analyses and dialogue events. Moreover, selected partner countries would be supported in taking concrete steps to improving the political climate. The dialogue project also represents a contribution to ongoing negotiations on climate finance from 2020.
On behalf of the GIZ, adelphi is in an advisory capacity conducting preliminary work on an international Dialogue Project on climate finance. adelphi, as part of an audit mission, is playing a leading role in the project, contributing to both an analysis of needs and conceptual development.