Today in Copenhagen, ministers and senior officials from more than a dozen donor countries(1) met for the second time this year to discuss how to enhance and accelerate our coordinated efforts to scale up climate finance. In particular, we have focused on how to most effectively use public resources and policies to mobilize private investment in low-emission, climate-resilient activities in developing countries.
We are committed to the goal of mobilizing $100 billion per year by 2020 from both public and private sources to support mitigation and adaptation in the context of meaningful and transparent action by developing countries. We recognize that scaling up different forms of financial support will be essential to facilitate the urgently needed transition to a low-emission, climate-resilient economy in developing countries.
Developed countries fulfilled the “fast start finance” commitment, having provided over $30 billion in public climate finance to developing countries between 2010 and 2012. While maintaining continuity in the collective provision of public finance at increasing levels, in 2013 we also turned our attention to longer-term objectives for mobilizing private climate finance and ways to coordinate more effectively to achieve those objectives.
To contribute to these efforts, we convened our first climate finance ministerial in Washington DC on 10-11 April 2013 to discuss the drivers of investment in climate-friendly infrastructure and how public finance channels and public policies could do more to scale-up such investment. We agreed on the importance of a sustained commitment to public finance, delivered through a variety of instruments and institutions, both as a catalytic tool to spur private flows and as a means of addressing areas with limited potential for private investment. We considered the barriers to scaling up private investment and the public tools needed to unlock that investment, including technical assistance, risk mitigation instruments, debt and equity instruments, and incremental cost financing. We agreed to improve coordination among donor countries in order to develop and deploy financing strategies, and that such coordination must be complemented by strong engagement with developing countries. We noted the importance of action by developing countries to improve their enabling environments and invest domestically. We also noted the specific challenges faced in mobilizing finance for adaptation, in particular private sector investment in adaptation activities.
In Washington, we worked with financial institutions to launch the new work to strengthen the role of relevant public finance institutions in mobilizing climate finance and to examine new ideas for leveraging private investment. Today’s meeting in Copenhagen provided an opportunity to take stock of this work and consider next steps, noting that all actors should strive to achieve coordinated efforts and avoid duplication.
We recognize other areas for collaborative work, including developing methods for tracking mobilized private climate finance. In this regard, we support the ongoing technical work of the Research Collaborative on Tracking Private Climate Finance, coordinated by the OECD. This will provide useful tools for countries to consider how to track mobilized private climate finance.
The work undertaken in 2013 has begun to lay the groundwork for an ambitious and wide-ranging set of efforts aimed at catalyzing low-emission, climate-resilient investment in developing countries. We recognize that much work remains to develop the tools necessary to shift the global economy in this direction. Going forward, we will continue to work closely together and with developing countries at both the political and technical levels to expand the range and scale of climate finance solutions for mitigation and adaptation.
Specifically, we applaud the DFIs for agreeing to the four areas of work outlined above and encourage them to continue to pursue these areas to further scale up their support. We welcome the ECAs’ catalogue of ideas and encourage more work to implement those ideas that will help scale up mobilized climate finance while coordinating more effectively with other finance institutions. We encourage further work by the MDBs to scale up climate finance, develop tracking methods to measure private climate finance leveraged, and to more fully mainstream climate change considerations into their strategies and operations, including by integrating environmental costs of greenhouse gas emissions in their socio-economic assessment of projects. Together with developing countries partners, we are also working expeditiously to operationalize an ambitious Green Climate Fund. We also support ongoing work to develop and launch a public-private platform to design and help implement new approaches to mobilizing private investment. We look forward to taking stock of this ongoing work when we meet again in 2014.
This initiative complements a wide range of bilateral and multilateral actions to mobilize climate finance. We will continue to report on our collective and individual work and look forward to a broader dialogue at the in-session high-level ministerial dialogue on climate finance at the UN climate conference in Warsaw.