Climate Finance Research Articles

Quantifying international public finance provision needs for the new UN climate finance goal

Quantifying international public finance provision needs for the new UN climate finance goal

Biomedical research grant resubmission: rates and factors related to success – a scoping review

ObjectivesMost first-time biomedical research grant applications are not funded. In the challenging research funding climate, resubmitting a grant application is a necessary task for scientists. Identifying which factors influence their...

Does Climate Finance Really Affect Ecological Quality in Developing Countries? Fresh Evidence From the Method of Moments Quantile Regression Approach

ABSTRACTThis study investigated the impact of climate finance on the ecological footprint (EF) of 111 developing countries from 2002 to 2018 to determine its real effects on ecological quality. The study applied the method of moments quantile regression (MMQR) to address nonnormality, individual heterogeneity of the EF and outliers. Additionally, the connection between climate finance and the EF is revisited, considering recipient countries' income diversity and the nature of climate finance. In addition, the analysis is repeated by splitting the sample periods into 2002–2009 and 2010–2018, subject to COP15. The results indicate that climate finance has negative and significant impacts on EFs across all quantiles (Q0.25, Q0.5, Q0.75 and Q0.9), inferring that climate finance robustly improves the ecological quality of developing countries. These findings further imply that mitigation finance has a robust effect on improving ecological quality across all distributions. In addition, adaptation finance has heterogeneous effects on EFs, positively impacting ecological quality at higher quantiles. Moreover, the effects of climate finance on ecological quality depend on income heterogeneity, having a negative effect on the EF of middle‐income countries and an insignificant effect on low‐income countries. The results further showed that the positive effects of climate finance on ecological quality became stronger after COP15. The findings are robust to alternative methods. Policy implications are suggested based on the findings.

Global Research Trends in Green Finance: A Systematic Literature Review of Regional Contributions (2001-2024)

This study presents the systematic analysis of existing literature on global research trends in green finance, focusing on regional contributions from 2001 to 2024. Using data from the Web of Science and Scopus databases, this analysis identifies patterns in publication volume, regional leadership, and thematic evolution in green finance research. The findings reveal a substantial increase in scholarly output, particularly in response to climate agreements such as the Paris Agreement and the Sustainable Development Goals. Notably, countries like China, the United Kingdom, and emerging contributors, including Pakistan, are leading in research output. The study underscores a shift from foundational studies on sustainable finance to specific applications in green bonds, ESG criteria, and climate finance. Additionally, it highlights strong international co-authorship networks, especially among researchers in Europe, North America, and Asia, which facilitate cross-border collaboration and knowledge dissemination.

Climate Finance: Taking a Position on Climate Futures

Climate Finance: Taking a Position on Climate Futures

Is transparency furthering clarity in multilateral climate governance? The case of climate finance

AbstractDeveloping countries’ ambitious climate action hinges on the provision of climate finance from developed countries. Yet, despite decades of debate and contestation over this, substantial controversies continue to persist over whether and how much climate finance is flowing, including whether it is ‘new and additional’ to existing development assistance, whether it targets climate mitigation or adaptation, and whether it is delivered as grants or loans. In this article, we draw on a little-examined source of self-reporting by countries to shed light on these persisting climate finance controversies. Elaborate transparency arrangements have been set up under the United Nations Framework Convention on Climate Change (UNFCCC), whereby countries report on climate finance provided and received. We examine transparency reports submitted by 26 countries from 2014 to 2021 by both developed and developing countries, and international review of these reports, to ascertain the extent to which country self-reporting under the UNFCCC sheds light on the nature of climate finance flows between developed and developing countries. We find that both the reports submitted and the international review of these reports are not furthering clarity around climate finance provided and received. This is because of (a) a persisting lack of multilaterally agreed definitions of key aspects of climate finance provided, and a resulting heterogeneity of definitions used by countries to self-report; and (b) because international review of country self-reporting is subject to politically negotiated limitations. We conclude that clarity remains elusive on climate finance provided and received under the UNFCCC, a situation that seems likely to continue under the Paris Agreement’s enhanced transparency framework, due to be implemented in 2024.

Battling for food security in Africa: Is climate finance the missing bullet?

AbstractAs climate change increasingly threatens food production and distribution in Africa, understanding how climate finance programs can effectively improve food security in the region has become a critical research priority. In this light, the present study investigates the effect of climate finance on food security across 37 African countries from 2012 to 2021, utilizing secondary data and employing the system generalized method of moments. Our findings consistently demonstrate that climate finance plays a significant role in reducing food insecurity in Africa. This effect remains robust across various alternative food insecurity and climate finance metrics. Furthermore, through analyses of transmission channels, we confirm the indirect pathways through which climate finance contributes to improved food security outcomes in the region. Based on the findings, the study recommends strengthening and expanding climate finance initiatives focusing on enhancing accessibility, equity, and targeted support for farmers to reduce food insecurity.

Mission Design and Validation of a Fixed-Wing Unmanned Aerial Vehicle for Environmental Monitoring

Climate change is becoming a worldwide emergency. In order to prevent catastrophic levels of climate change, three broad categories of action are ongoing: cutting emissions, adapting to climate impacts, and financing required adjustments. Cutting emissions requires stopping the use of fossil fuels in favor of renewable energy sources. Adapting to climate change and financing required adjustments need instruments for the understanding of the source causes and how effective the potential measures are. In this context, the use of Unmanned Aerial Vehicles for environmental monitoring is continuously increasing thanks to their ability to collect a wide range of environmental data, from the quality of air to the health status of vegetation, waters, and lands. This paper describes the research activities that are being performed for the design and development of a 100 kg Max Take Off Mass prototype zero-emission Unmanned Aerial Vehicle, named Daphne, destined for environmental monitoring, surveillance, and inspection missions. The developed prototype will drive the next industrialization of the vehicle. A particular focus is given to the design of the power system, based on the use of Proton Exchange Membrane fuel cells fueled with green hydrogen, the integration of the sensors allowing for multipurpose observations and measurements, and the design and validation of the relative multi-purpose missions via an innovative approach based on Model-Based System Engineering.

Climate Finance: Pioneering Pathways to Sustainability

Climate finance is a progressive financial tool to foster sustainability and address climate change mitigation and adaptation challenges. This study delineates the notion of climate finance and sustainability, illustrating their confluence and its impact on social welfare, ecological quality, and economic well-being. Climate financing involves distributing resources to environmentally sustainable enterprises and projects designed to harmonize economic growth with sustainability. Furthermore, developed nations have committed to offering financial assistance to developing nations to confront the problems presented by climate change. This paper aims to decode the confluence of climate finance and sustainability. Moreover, it underscores the significance of climate financing in tackling environmental issues, reaching carbon neutrality, and eventually realizing sustainable development. The finding indicates that climate finance is essential for addressing climate change and achieving sustainability, highlighting the significant role of developed nations and the private sector in closing the funding gap required for investments in climate-resilient projects and infrastructure. Consequently, this can generate possibilities for people and nations to earn carbon credits, which are tradable in carbon markets, thereby securing financial benefits.

Методологічні підходи до дослідження та формування інституційного забезпечення кліматичного фінансування

Introduction. At the core of any scientific research lies the process of cognition, which necessitates clarification of the conceptual approach in accordance with the chosen methodology. The desired outcomes are determined not only by the initial theoretical stance of the researcher but also by a well-founded formulation of the problem and a specification of the directions for scientific inquiry. Thus, proper scientific cognition and the selection of specific general and special methods require an adequate theoretical and practical understanding of reality, necessitating a sophisticated methodology for scientific research. Problem Statement. Preventing, countering, and adapting to the negative impacts of climate change for the socio-economic development of countries and the deterioration of the environment require the establishment of effective institutional support for climate financing, aimed at mitigating these issues. To implement such measures through climate financing, a well-grounded methodology is essential for both research and the formation of institutional support for climate financial flows. Purpose. To define methodological approaches to the study and formation of institutional support for climate financing. Methods. A systemic approach was applied, along with monographic, historical, economic-statistical methods, and methods of comparative and expert analysis. Results. The significance of the methodology of scientific cognition has been established. Methodological approaches to the study and formation of institutional support for climate financing have been outlined, along with their components and the methodological arsenal for addressing the identified issues. Conclusions. To conduct a comprehensive study and establish institutional support for climate financing, advanced methodological approaches are required. These will enable a thorough understanding of the essence, varieties, functions, components, and instruments of such financing, facilitating the development of adequate institutional support to enhance the effectiveness of prevention, counteraction, and mitigation of the negative impacts of climate change and adaptation to these changes.

The emergence of green finance a conceptual framework for environmental sustainability: innovation viewpoint

Background of the study This study intends to contribute to the continuing discussion about green economic growth by objectively investigating the consequences of clean energy generation, cutting-edge green practices, and ethical business on global sustainability. This study also examines how green finance laws effectively handle the financial limitations that companies face when pursuing green innovation. Green finance enables the development and implementation of sustainable business models, investments, trade, economic, environmental, and social projects through the effective utilization of financial resources. Methods This article offers a complete evaluation of the current state and advancements in green finance research using a mixed-methods approach, which includes bibliometric and qualitative analysis. We analysed a big dataset of research papers after entering the keywords into the Scopus database. Results This study found that green bank products include green securities, investments, climate financing, carbon finance, insurance, credit, and infrastructure bonds. Sustainability, sustainable development, investments, environmental economics, sustainable finance, green bonds, and the green economy dominate as a most prevalent theme. China has the strongest bibliometric linkages to other nations, followed by the US and UK. This study also examines whether green finance policies address firm financial restrictions while pursuing green innovation. VOS-viewer generates co-authorship-based keyword occurrence links and network maps. Conclusion Green finance strives to increase funding flows to sustainable development goals while mitigating environmental and social hazards. “Going green,” pricing, forecasting, modelling, picking the most efficient tool, and influencing investor behaviour toward environmentally friendly operations are all challenges. Environmental policies, interest rates, religion, risks, social inclusion, and banking laws all have an impact on bank green financing initiatives. The study’s main contribution is an overview of green finance breakthroughs for sustainability, which may help scholars and practitioners understand the trend and future research directions.

Climate change and external debt vulnerability: the case of Sub-Saharan Africa

This study examined the influence of climate change vulnerability on the external debt vulnerability of Sub-Saharan Africa, with a focus on the Vulnerable Twenties (V20s), utilizing panel data spanning from 2015 to 2020. The climate readiness, climate vulnerability, and external debt vulnerability indices were derived via principal component analysis (PCA). The results from the system GMM analysis indicate that climate readiness exhibits a negative and significant impact across short- and long-term periods for the overall sample. However, for the V20s, the negative effect of climate readiness shifts to a positive and significant one over both short and long terms, with the long-term effect being more notable. These findings highlight a vicious cycle between debt and climate crises within the V20s. Thus, prioritizing debt relief over climate finance loans, decarbonizing greenhouse gas emissions, redirecting funds for climate goals, improving debt practices, and investing in public services would break nations’ vicious cycle of debt and climate vulnerability.

Is health being considered by funding towards climate adaptation and mitigation?

Abstract Introduction Funding is essential to build climate resilience in public health and healthcare systems and enable populations to adapt to the increasing impacts on climate change on health across the globe. This study aimed to investigate how health has been considered by the projects supported by the Green Climate Fund (GCF), created by the Paris Agreement to support climate adaptation and mitigation. Methods Adaptation, mitigation, and cross-cutting projects funded by the GCF between 2021 and 2023 were included. Information was collected for the percentage of funding allocated to health adaptation by cross-cutting and adaptation projects. For mitigation projects, information was extracted on the extent to which health co-benefits were considered. Results The 69 adaptation and cross-cutting projects funded by the GCF in 2021-2023 contributed $226 million towards adaptation, of which $59 (26%) million were for health adaptation. There was an increase in the funding provided by the GCF to adaptation from $1 million in 2021 to $156 million in 2023. Funding for health adaptation increased from $178,000 in 2021 to $42 million in 2023. Of the co-funding provided by beneficiaries, $637 million contributed to adaptation and $165 (26%) million to health adaptation. There was an increase in co-funding for adaptation provided by beneficiaries from $131 million in 2022 to $506 million in 2023, with funding for health adaptation increasing from $23 (18%) million to $142 (28%) million. Among the 48 mitigation and cross-cutting projects, 15 did not mention health, 13 mentioned did not correctly articulate health co-benefits, 11 identified specific health co-benefits, and 9 correctly labelled and measured health co-benefits. The main co-benefits derived from reducing air pollution. Conclusions Among the projects funded by the GCF, funding for health adaptation remains a small proportion of the adaptation funding and health co-benefits are rarely considered by mitigation projects. Key messages • The proportion of adaptation funding provided for the health sector remains low. • Health co-benefits are seldom considered and measured by climate mitigation projects.

Discovering the effectiveness of climate finance for Somalia’s climate initiatives: a dual-modeling approach with multiple regression and support vector machine

IntroductionThis research investigates into the complex dynamics of climate finance in Somalia, a vulnerable region facing the dire consequences of climate change. The study aims to assess how financial inputs for climate-related projects align with the actual needs and identify critical factors that influence funding effectiveness.MethodsA dual-methodological approach was employed, integrating both multiple regression analysis and Support Vector Machine (SVM) techniques. This mixed-method analysis facilitates a robust examination of climate finance data to dissect the relationships and impacts of various determinants on funding effectiveness.ResultsThe results indicate that adaptation finance, robust governance, and the scale of financial interventions significantly enhance the effectiveness of climate finance flows. However, mitigation finance and aspects related to gender equality displayed less significant impacts. Notably, the study identifies a pervasive underfinancing of climate projects in Somalia, illustrating a significant gap between the needed and actual funds disbursed.DiscussionThe findings underscore the need for enhanced governance frameworks and targeted large-scale financial interventions to optimize the allocation and impact of climate finance in vulnerable regions like Somalia. By quantifying the influence of adaptation finance and governance, this study contributes new insights to the literature on climate finance effectiveness and suggests practical strategies for policymakers and practitioners to improve climate resilience initiatives.

Determinants and effects of climate finance in the transport sector

We examine the determinants of climate-related development finance flows to the transportation sector and their relationship with CO2 emission levels. The mitigation fund allocation is particularly correlated with the demographic characteristics of recipient countries; however, the correlation with per capita income and emissions seems to be weak. In contrast, equity considerations appear to be the main determinants of adaptation fund allocation. Finally, we find some evidence of a significant negative relationship between mitigation investments and emissions per capita and while the overall effect is modest, it tends to be most marked in countries with the highest per capita emissions. Thus, the fact that countries with the highest emissions per capita are not receiving relatively more investments may be hampering the effectiveness of climate finance.

Design by Transitional Committee: learning from the Green Climate Fund

ABSTRACT In 2022 at the UN climate conference in Sharm el-Sheikh (COP27), countries agreed to establish a new fund for loss and damage. This decision was one of the most significant outcomes of the COP, and something Small Island Developing States had spent the previous three decades calling for. The approach taken to realize this new funding arrangement includes many similarities to that taken to create a similarly significant new fund twelve years earlier – the Green Climate Fund (GCF) – including its design by a Transitional Committee. The aim of this article is to assess the extent to which the ambitions for the GCF have been realized, with a view to informing the ongoing design and early implementation of the new fund. To do this, the article compares the GCF’s present-day outcomes to its original intentions as described by the COP16 decision text. This paper finds that the GCF’s operation today only partially reflects the ambitions expressed at COP16. While the ambition for a Board with equal representation by developing and developed countries has been achieved, ambitions to expand the sources of finance and increase funding for adaptation have been mixed. The influence of the World Bank was a key point of tension over the GCF’s Transitional Committee period, and the Bank continues in the Trustee role today. The role of the Committee’s Technical Support Unit – the group of staff seconded from various international development banks and agencies to provide technical and administrative support to the GCF’s Transitional Committee – had an outsized influence on the shape of the GCF, such that these organizations continue to receive the bulk of GCF funding today. These findings suggest a greater plurality of voices providing such technical inputs would enhance the design of new funding bodies. The creation of new international finance institutions is relatively rare, so understanding the history of the GCF’s design is important for contextualising discussions about other climate finance options.

Towards a greener future: The impact of financial technology (FinTech) and climate finance on ecological sustainability

Ecological sustainability has become a top priority for worldwide policymakers due to severe consequences. Innovative approaches, like climate finance and financial technology (FinTech), are crucial in combating climate change and its environmental hazards. This study aims to investigate the role of climate finance on ecological sustainability with FinTech and institutional quality as moderators from 2010 to 2022 in 58 advanced countries. Besides that, the COVID-19 spillover shock effect (pre-post), socio-economic conditions, and trade openness are also considered as other variables in this study. The study employed the two-step Sys GMM approach, and the robustness was checked by the D-K regression and bootstrap panel quantile regression for empirical analysis. The results reveal that climate finance improves the trajectory of long-term ecological sustainability by significantly lowering the ecological footprint (EF). FinTech has a strong positive effect on ecological performance by decreasing the EF. Furthermore, the combined influence of CF∗FinTech has significantly boosted ecological sustainability by diminishing the EF. Institutional quality substantially enhances ecological sustainability by reducing the EF. Similarly, the interaction term CF∗IQ improves ecological performance by lowering the EF. The outcomes have significant implications for sustainable development policy, influencing the transition to low-carbon economies and meeting net-zero emissions within this decade, contributing to improved ecological sustainability.

Sustainable energy consumption and finance in the presence of risks: Towards a green economy

Moving towards a green economy, sustainable energy consumption and financial development amid mounting risks moved to center stage of policymaking and academia. Strengthening energy consumption from renewable sources is integral to the attainment of the overarching sustainable development goals of the Paris Agreement. The study employs data from 19 OECD economies spanning from 1990 to 2020 to explore the effect of risks on sustainable energy consumption. Using a multifaceted empirical approach -- comprising Panel OLS, MG estimators, quantile regression analysis and local projection approach -- results establish a key role for political, economic and financial risks in determining energy consumption from renewable sources. Results for the impact of finance indicators on sustainable energy consumption provide robust, though mixed, findings on how to bridge the climate financing gap. Our findings underscore the significant positive influence of human capital development, economic growth, economic openness and oil prices on sustainable energy use. It is further shown that decreasing carbon emissions and making sustainable energy more affordable should be on the central agenda of policymaking for promoting environmental sustainability. A multi-lever strategy is needed when making environmental policies while distributional heterogeneity should also be considered.

Climate Finance for Sustainable Fashion in India

Climate Finance for Sustainable Fashion in India

Making climate finance: toward everyday, historically informed, and reparative understandings

The centering of climate finance around a narrow set of institutions, sites, instruments, practices, and technologies is an achievement made possible by the domination of finance capital and policy elites. In this intervention, we shift the spotlight away from such elite projects and practices in favor of a wider understanding of urban climate finance—one that includes a more diverse set of sites, activities and participants. A wider and more inclusive conceptualization of urban climate finance requires accounting for the historical and ongoing role of finance in the production of climate vulnerability. Reconceptualized in this way, urban climate finance expands to include everyday financial life in cities around the world. Everyday climate finance is thus generated in places where the risks and uncertainties of climate change are currently unrecognized by policy elites as such, yet are being managed through improvised repertoires of financial practices. Additionally, (re)considering past financial practices as climate finance (e.g. historical residential redlining that produces climate vulnerability today), provides a rationale for demanding that past and present financial actors account for today’s climate injustices, and contribute to future reparative and abolitionist climate action.