Scaling up and replicating effective climate finance interventions

Abstract

There is widespread recognition that climate finance needs to be scaled up from its current levels. However, there is no clear view on how developed countries can efficiently and effectively mobilise further climate finance to meet the needs of developing countries. Developed countries have committed to mobilise USD 100 bn per year of climate finance for developing countries by 2020 from a variety of sources. These include both public and private finance, thus the private sector is likely to play a significant role in the mobilisation of climate finance to meet this commitment. This paper explores how scale-up and replication of effective climate finance interventions efficiently mobilise private climate finance. The interventions examined in the paper have already been, or are being, scaled up or replicated. Scaling-up and replication of such climate finance interventions could be an efficient way to increase the private sector’s interest in mobilisation of climate finance, and thus to make progress towards the USD 100 bn per year goal by 2020. The paper draws lessons from selected mitigation and available adaptation case studies at project- and programme-levels as well as from experience with international climate funds. The paper examines three key aspects needed to scale up and replicate climate finance. The first is the institutional structures and decision-making framework of the climate finance source, its aims, the scale at which it operates and how barriers to scaling-up and replication have been addressed. Second, the paper explores how demonstrating effective low-carbon, climate-resilient technologies and systems can facilitate scale-up and replication. Third, the paper discusses the influence of policies to enhance domestic enabling environments for scaling-up and replication.