A Framework for Enhancing International Climate Finance Flows | ThinkTwenty (T20) India 2023 – Official Engagement Group of G20
August 1, 2023
CEO David Rusnok from Climate & Company, together with Manish Kumar Shrivastava (Senior Fellow, Earth Science and Climate Change Division, The Energy and Resources Institute (TERI), Heiner Lupke (Senior Researcher, DIW Berlin), Samantha Keen (Researcher, Strengthening National Climate Policy Implementation project), and Karsten Neuhoff (Head of the Climate Policy Department, German Institute for Economic Research (DIW Berlin), prepared this policy brief about a framework for enhancing international climate finance flows.
The mobilisation and disbursement of climate finance at the scale and speed required to meet global targets is hindered by high cost of capital. At the root of this high cost are the perceived high risk of investment, institutional ambiguities across sectors and countries, and the fact that countries are politically accountable to their domestic stakeholders who may disapprove of such risk. Absent a transition from old business models to new low-carbon ones—a step that requires changes in the political economy—this perception will persist. Climate finance flows would be much better if governments are open to working on these new models. This Policy Brief proposes an institutional arrangement that can build on existing practices, institutions, and domestic acceptance to create a global network of risk reduction instruments for climate finance.
You can read this brief on the T20 website here.
What is the Think20 (T20)?
Think20 (T20) is an official Engagement Group of the G20. It serves as an “idea bank” for the G20 by bringing together think tanks and high-level experts to discuss policy issues relevant to the G20. T20 recommendations are synthesised into policy briefs and presented to G20 working groups, ministerial meetings, and leaders’ summit. This helps the G20 deliver concrete policy measures.
What is the Task Force 5: Purpose & Performance: Reassessing the Global Financial Order
This task force deliberates on how the global financial architecture can be made fit for purpose for the 21st century. You can find more information about the Task Force here.