Official development assistance finances climate-relevant activities in developing countries to a much larger extent than the funds under the UNFCCC. Pledges for new and additional fast start and long-term finance in the Copenhagen Accord made in December 2009 aim at increasing funding available for mitigation and adaptation activities in developing countries. Nearly 12 months later, the relationship between climate and development finance remains a controversial issue. While the overlaps and possible synergies between development-oriented and climate-related investments are largely acknowledged, concerns on the definition of newness and additionality at international level are still large.
These concerns are justified, for three main reasons: first, as long as development budgets don’t grow the risk increases that – under the pressure of the Copenhagen pledge – large shares of ODA are diverted from poverty reduction to emissions reduction. Second, this risk increases as long as there is no agreed definition of additionality. And third, in the absence of agreed and transparent procedures and criteria for reporting on climate funding, there is a high degree of uncertainty on how much funds were really invested in climate-related activities.
This opinion paper focuses on these three issues and analyses what Europe has to offer in order to reduce these concerns and risks and promote trust at international level. Read more.
- EDC 2020 - Policy Brief No 15: Climate change challenges for European Development Cooperation: issues towards 2020
- EDC 2020 - Policy Brief No 14: Climate Finance in Bangladesh: Lessons for Development Cooperation and Climate Finance at National Level
- EDC 2020 - Working Paper No 13 - The New Landscape Of Economic Governance - Strengthening the Role of Emerging Economies
- EDC 2020 - Policy Brief No 12: International Public Finance to Address Climate Change in Indonesia – Lessons for the Future of European Development Cooperation
- EDC 2020 - Working Paper No 12: Climate Finance in Bangladesh: Lessons for the Development Cooperation and Climate Finance at National Level
- EDC 2020 - Policy Brief No. 10: The Challenge from Within: New EU Donors and European Development Cooperation
- EDC 2020 - Working Paper No 11: Climate Finance in Indonesia: Lessons for the Future of Public Finance for Climate Change Mitigation
- EDC 2020 - Working Paper No 9: The EU’s Interests in Central Asia: Integrating Energy, Security and Values Into Coherent Policy
- EDC 2020 - Policy Brief No.6: European Development Cooperation to 2020: Rising Powers and New Global Challenges
- EDC 2020 - Working Paper No. 6 - International Climate Finance: Principles for European Support to Developing Countries
- EDC 2020 - Working Paper No 7 - Emerging Non-State Actors in Global Development: Challenges for Europe