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 the newsletter

To learn more
  • 06/23/2023 Foreword of the week
    Better EU data for better climate action

    Twelve EU Member States have started implementing new budgetary processes to help align their public budgets with climate objectives. Green budget tagging, a prominent tool, can provide a clear picture of the share of a national budget that is aligned, or runs counter, with the national climate strategy. France publishes its annual green budget every year and now, for the first time in 2023, the government intends to use its data for the preparation of the draft budget law.

  • 06/15/2023
    Greener, better, stronger: Factors for the successful implementation of green budgeting in EU Member States

    National budgets, as the main driver of public action, need to be ‘greened’ by governments to achieve the transition to low-carbon, climate-resilient, and sustainable economies. That is, budgeting processes need to ensure sufficient funds are directed towards green activities and are directed away from environmentally harmful ones.

  • 06/09/2023 Foreword of the week
    Green Deal: chapter 2

    Emmanuel Macron certainly made a mistake in calling for a European “regulatory pause” on the environment. In the same speech, he however expressed a truth that is essential to the debate: “Europe and France risk being the best-in-class in terms of regulation, and the worst-in-class in terms of financing”. It went unnoticed but, as highlighted in this I4CE newsletter, the time has come for a debate on how the EU can better finance the climate transition. And there is no time like the present! In precisely one year, on June 9th 2024, hundreds of millions of Europeans will vote for a new European Parliament, that will in term elect a new European Commission that will negotiate the future EU budget.

See all publications
Press contact Amélie FRITZ Head of Communication and press relations Email
Subscribe to our mailing list :
I register !
Subscribe to our newsletter
Once a week, receive all the information on climate economics
I register !