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U.S. Department of State

Diplomacy in Action

Progress Report on Joint Efforts To Mobilize Climate Finance

Press Statement
Copenhagen, Denmark
October 24, 2013


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.

  • Development finance institutions (DFIs) play a key role in channeling public financial resources to support public and private sector investment in developing countries. On 4 September 2013, KfW and OPIC co-hosted a special full-day meeting of CEOs and high-level representatives from 15 donor country DFIs and development banks on ways to scale up their climate finance. They agreed to enhance their collective efforts to support green investments in developing countries and emerging economies and contribute to the $100 billion goal. They agreed to (1) pursue mechanisms to further increase support for clean energy investments; (2) work towards harmonized guidelines to limit projects which lead to significant fossil fuel based greenhouse gas emissions; (3) help increase demand for clean finance in developing countries; and (4) explore pathways to increased transparency of carbon emissions in their reporting. The DFIs agreed to several next steps that will further enhance their support and coordination.(2)
  • Export credit agencies (ECAs) are among the largest public institutions that support investment in energy infrastructure projects worldwide and have a significant role to play in climate finance. On 19-20 September 2013, the Danish export credit agency EKF hosted a workshop with participation from ECA representatives, along with other experts from international organizations and the private sector, to discuss how ECAs are contributing and can further contribute to mobilizing private climate finance.  ECAs have the ability to mitigate the risks that may discourage the private sector from engaging in new technologies and insecure markets. During their meeting, the participants developed and shared new ideas for scaling up climate finance approaches and instruments. On the basis of these discussions, EKF has prepared a “Catalogue of Ideas” to encourage dialogue on new technical approaches that can be developed within individual ECAs or in cooperation among ECAs, ideas that require coordination in the appropriate bodies such as the OECD, and higher-level political ideas that ministers can help advance, in order for ECAs to contribute further to mobilizing private climate finance.(3) 
  • Multilateral development banks (MDBs) and multilateral climate funds are already playing a transformative role in the transition to a low-emission economy and have the potential to do much more. A series of new activities in 2013 has aimed at sharpening the response of the MDBs to the climate finance challenge. High-level representatives of MDBs and donor countries met twice, in April and October, to advance the agenda on leveraging private investment in climate action. The MDBs reported on work in three important areas: (1) the development of guidelines for offering concessional loans; (2) efforts to better engage the private sector; and (3) progress on tracking of their climate finance, especially on measuring private funds leveraged. More structured exchanges among the MDBs, the private sector, and policymakers to advance the climate finance agenda are planned. Meanwhile, the ongoing development of the Green Climate Fund, including its Private Sector Facility, provides an opportunity to promote a paradigm shift and to test new approaches to catalyzing private investment for mitigation and adaptation in developing countries.
  • Public-private platform - As we expand financing tools delivered through existing institutions, we are working to improve the interface  between the public and private sectors. Among other initiatives, several donor countries are now working together with private investors, multilateral institutions, and developing country stakeholders on a public-private platform aimed at defining and piloting new climate finance instruments to leverage private investment in low-carbon, climate-resilient infrastructure. The platform would stress test and compare specific proposals, helping to bring to reality a handful that have potential to play a transformational role in channeling private capital at scale.

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.


(1) Australia, Canada, Denmark, the European Union, France, Germany, Italy, Japan, the Netherlands, New Zealand, Norway, Poland, Switzerland, Sweden, the United Kingdom, and the United States.

(2) For details, see
(3) The Catalogue of Ideas will be available on the EKF website, For further inquiries, please contact:

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