Structuring International Financial Support for Climate Change Mitigation in Developing Countries

41 Pages Posted: 3 May 2010

See all articles by Karsten Neuhoff

Karsten Neuhoff

German Institute for Economic Research (DIW Berlin)

Sam Fankhauser

London School of Economics & Political Science (LSE) - Grantham Research Institute on Climate Change and the Environment

Emmanuel Guerin

affiliation not provided to SSRN

Jean-Charles Hourcade

CIRED, International Research Center on Environment & Development, France

Helen Jackson

affiliation not provided to SSRN

Ranjita Rajan

affiliation not provided to SSRN

John Ward

Northwestern University

Date Written: February 2010

Abstract

In the Copenhagen Accord of December 2009, developed countries agreed to provide start-up finance for adaptation in developing countries and expressed the ambition to scale this up to $100 billion per year by 2020. The financial mechanisms to deliver this support have to be tailored to country and sector specific needs so as to enable domestic policy processes and self sustaining business models, and to limit policy risk exposure for investors while complying with budgetary constraints in OECD countries. This paper structures the available financial mechanisms according to the needs they can address, and reports on experience with their application in bilateral and multilateral settings.

Keywords: Financial mechanism, risk guarantee, development, climate policy

JEL Classification: F30, G20, R38

Suggested Citation

Neuhoff, Karsten and Fankhauser, Sam and Guerin, Emmanuel and Hourcade, Jean-Charles and Jackson, Helen and Rajan, Ranjita and Ward, John, Structuring International Financial Support for Climate Change Mitigation in Developing Countries (February 2010). DIW Berlin Discussion Paper No. 976. Available at SSRN: https://ssrn.com/abstract=1596079 or http://dx.doi.org/10.2139/ssrn.1596079

Karsten Neuhoff (Contact Author)

German Institute for Economic Research (DIW Berlin) ( email )

Mohrenstra├če 58
Berlin, 10117
Germany

Sam Fankhauser

London School of Economics & Political Science (LSE) - Grantham Research Institute on Climate Change and the Environment ( email )

Houghton Street
London, WC2A 2AE
Great Britain

HOME PAGE: http://personal.lse.ac.uk/fankhaus/

Emmanuel Guerin

affiliation not provided to SSRN ( email )

Jean-Charles Hourcade

CIRED, International Research Center on Environment & Development, France ( email )

Campus du Jardin Tropical
45 bis avenue de la Belle Gabrielle
F94736 Nogent sur Marne Cedex
France

Helen Jackson

affiliation not provided to SSRN ( email )

Ranjita Rajan

affiliation not provided to SSRN ( email )

John Ward

Northwestern University ( email )

2001 Sheridan Road
Evanston, IL 60208
United States

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