Law and Regulation for Climate Finance: Presenting a Legal Analytical Framework
Book chapter in edited book 'Climate Change and Sustainable Finance: Law and Regulation' (R Smits ed., Edward Elgar, 2022 Forthcoming)
18 Pages Posted: 18 Nov 2021
Date Written: July 29, 2021
The desperate need for humans to better comprehend and act upon systemic risk warnings has been brought home by the pandemic. Specifically, attention is now focusing on the urgency with which we must address foreseeable climate risk and avoid a disorderly transition to net-zero. Yet facilitating a low-carbon transition and increasing climate resilience globally will require trillions of dollars of funding and investment globally. This imperative raises new questions, instrumental and normative, about how best to harness the private sector for public benefit, and the optimal role for law and regulation in enabling climate finance. Taking Article 2.1(c) of the Paris Agreement as its North Star, this paper contributes a ‘legal voice’ to the climate finance endeavour. It presents a novel empirically-informed Legal Analytical Framework for Climate Finance as one way to bring Article 2.1(c) to life. This Framework is derived from original research undertaken during a research-impact partnership with the United Nations Environment Program (UNEP) that investigated legal readiness strategies and an emerging climate finance law. The aim is to make explicit a palette of regulatory options and legal forms for decision makers to consider when mobilising private capital and public finance to address climate change.
Keywords: climate finance, sustainable finance, article 2.1(c), Paris Agreement, national law and regulation, private finance, public funding
JEL Classification: K2
Suggested Citation: Suggested Citation