Abstract

The Lima call for climate action adopted at the Lima Climate Conference on Climate Change specifies that the principles of the United Nations Framework Convention on Climate Change, including the principle of common but differentiated responsibilities, shall apply to the new climate agreement to be adopted at the Paris Conference on Climate Change in 2015. Decisions on other heavily debated items, including the intended nationally determined contributions, were also made at the Lima Conference. The significant achievements in Lima and the positive momentum have laid a solid foundation for the adoption of a new climate agreement in the Paris Climate Conference. Four measures are proposed for China to meet great challenges in addressing climate change beyond 2020, including early formulation and issuance of a climate change law, establishment of a greenhouse gas emission trading scheme, promotion of advanced climate technology investments, and further international engagement for climate change.

Abstract

This note, prepared as background for the G20 submission, explores the potential for Multilateral Development Banks (MDBs) to increase the volume of climate financing by leveraging and intermediating resources, through two main avenues: leveraging shareholder capital through the MDBs non-concessional windows, by raising debt from capital markets to finance climate investment; and mobilizing and 'pooling' concessional flows to support climate investment beyond the MDBs own balance sheets. The note is organized along these two lines, with the aim of providing some insights into the feasibility for MDBs to mobilize resources to leverage a significantly larger volume of climate financing assistance. The next section of this note provides information on how MDBs can support concessional flows to climate investments through pooling of external concessional flows beyond traditional balance-sheet capital. Leveraging shareholder capital and mobilizing and-pooling concessional flows are two potential avenues through which MDBs can leverage and intermediate resources to ultimately increase the volume of climate financing. The experience gained by the MDBs and their clients and donors from implementing these financing arrangements should provide helpful lessons for the development community as it considers how to develop the green climate fund and other future climate change initiatives. Document type: Book