COP27: the importance of national financing strategies for the transition

10 November 2022 - Foreword of the week - By : Louise KESSLER, PhD

This year again, expectations for the COP are high regarding developed countries’ commitments towards the funding of action against climate change and its impacts. The question of loss and damage, which pertains to questions of climate justice and of who should pay for the significant impacts of climate change endured by the poorest countries, has just been added to the official COP agenda. And climate finance will again be a hot topic: the pledge made back in 2009 by rich nations to channel US$100bn every year by 2020 to help less wealthy nations mitigate the rise in temperatures and adapt to climate change is still falling short of targets.


Let’s hope that we will soon see a substantial increase in the finance flows from rich and high-emitting countries to poorer ones. As these flows increase and as countries develop their national long-term decarbonization strategies, the question becomes of how to make the best use of international funds, national budgets and private sector funding for countries to deliver on climate and development targets. An essential first step is the development of financing strategies for the transition by Finance Ministries: these are critical to ensure that climate investments are unlocked by adequate policies, that enough government spending is safeguarded to support effective climate action and that the macroeconomic implications of the transition are anticipated and managed.
Much of the research undertaken at I4CE these past few years contributes to informing the question of how to finance the transition, and of the specific role of public finance. Climate finance landscapes help identify investment needs, while the development of green budgeting methodologies supports the consistency of governments’ budgets with climate targets. We are now completing this toolbox with the launch of a dashboard for Finance Ministers to support the implementation of long-term strategies. This dashboard template was developed in partnership with the 2050 Pathways Platform and contains economic indicators to assess, act on, and monitor the economic implications and opportunities ensuing from long-term strategies.


From tomorrow and next week, we will hold a series of side-events at Sharm-el-Sheikh on the topic of how to finance the transition. Please do not hesitate to join these discussions either in person or remotely – these side-events will be broadcasted online – and listen to experts from I4CE, government representatives, Finance Ministers, international organizations and civil society organizations.


Financing the transition towards low-carbon and climate-resilient economies in developping countries

Date: 14 November 2022, 13:15-14:15 (Egypt time)

Location: UNFCCC pavilion & online

Organisers: I4CE

Moderated by Benoît Leguet from I4CE and with a keynote speech by Laurence Tubiana from ECF.

More informations.



Engaging key stakeholders in the implementation of long-term strategies 

Date: 17 November 2022, 14:30-17:30 (Egypt time)

Location: IDFC pavilion & online

Organisers: I4CE, Iddri, ADEME

With the participation of Louise Kessler and Chloé Boutron from I4CE on engaging finance Ministries in long-term strategy implementation at country level. 

More informations.



Planning for the transition

Date: 11 November 2022, 10:00-11:00 (Egypt time)

Location: French pavilion & online

Organisers: ADEME, I4CE, Iddri

With the participation of Louise Kessler from I4CE.

More informations.



Domestic climate finance mapping and planning: challenges and opportunities

Date: 17 November 2022, 11:00-12:00 (Egypt time)

Location: NDC pavilion & online

Organisers: CPI, UNDP and European Forest Institute

With the participation of Louise Kessler on the extent to which I4CE’s climate landscape has informed and influenced the financing of the energy transition in France.

More informations.



Including developing countries in the low-carbon agenda

Date: 11 November 2022, 17:30-18:30 (Egypt time)

Location: IDFC pavilion & online

Organisers: AFD

With the participation of Joao Braga from I4CE.

More informations.



Read more

To learn more
  • 01/16/2023
    Landscape of climate finance in France – 2022 edition

    2022, France is paying dearly for a dependence on fossil fuels maintained by a chronic lack of investment in the decarbonisation of the economy. This edition of the Landscape of climate finance in France makes a detailed analysis of these critical expenditures by households, companies and public authorities, in the retrofitting of buildings, the purchase of electric vehicles, and renewable energies, as well as in rail, cycling and urban public transport infrastructures. Encouragingly, climate investments have increased significantly in the past year, driven, among other factors, by favourable regulations and by state support under the recovery plan. But this growth remains fragile, and analysis of several transition scenarios shows that climate investments need to increase further in order to stay on track to carbon neutrality and to ensure a lasting reduction in France’s dependence on fossil fuels.

  • 01/13/2023 Foreword of the week
    2023 agenda: there has never been a better time to act

    2022 was an eventful year in terms of climate. The year saw the emergence of a new concept, that of the polycrisis: war in Ukraine, the aftereffects of Covid, the return of inflation, the gas crisis, agricultural shortages, persistent droughts and other dramatic climatic events… all of these crises have ultimately pointed to our direct or indirect dependence on fossil fuels; our weaknesses when faced with a changing climate; and the vulnerability of our economies and the middle and lower classes.

  • 11/18/2022 Foreword of the week
    COP27: let us remember the obvious about climate finance

    As COP27 draws to a close, let us remember the obvious: implementing the Paris Agreement will require financial flows from developed to developing countries. However, these flows are not just the much discussed $100 billion a year promised by the nations of the North to their counterparts in the South – a promise that has not been kept to date. And they are not just about budgetary flows either. More fundamentally, the architecture of development financing – or at least its climate component – needs to be reviewed in depth. It is therefore primarily the mission and modus operandi of the multilateral banks, and more broadly of the public development banks, that must be reviewed.

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