COP27: let us remember the obvious about climate finance

18 November 2022 - Foreword of the week - By : Benoît LEGUET

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.


The challenge is clear: to increase the “climate” impact of public development banks. How can this be done? First, by increasing their lending or investment capacities. Secondly, by improving their ability to combine their operations with private financing. It is a second obvious fact: most of the financing for the transition, in the North as in the South, will come from the private sector. But also – and above all – by making them evolve from their historical logic of project financing to a logic of financing the structural changes necessary for a rapid and orderly transition. The attention of public development banks must therefore now turn to the construction of ambitious public policies to implement national climate strategies; to the parallel construction, by countries, of financing plans for climate strategies; to the financing of national financial institutions, able to contribute to the financing plan; and to support national financial regulators.


The I4CE team was there and organised or contributed, with its international partners, to a number of events to talk about this. You will find in this newsletter some of these replays.


Financing the transition in developping countries

You want to know more about the financing issues developing countries face to tackle climate change, from mobilizing significant budgetary resources to redirecting public finance flows or aligning their financial system. You want to listen to experts and practicioners and their ideas of reforms ? The replay of this I4CE event is for you.

More informations.



Rethinking development banking in the Decade of Delivery

It is now clear that Development Finance Institutions face many limitations to support the transition of developing countries, as highlighted by the Expert Panel tasked with the review of Multilateral Development Banks for the G20. This event, organized by the OECD, IDFC and I4CE as Secretariat of the Mainstreaming Initiative, focus on these limitations and how to adress them.

More informations.



Agligment of financial institutions with the Paris Agreement objectives

In order to maximize their impact, Development Finance Institutions engage with national governments, central banks or  their financial intermediaries for the alignment of local financial markets. To discover how they do so, watch the replay of this event organized by I4CE as Secretariat of the Mainstreaming Initiative.

More informations.



Domestic climate finance mapping and planning

Monitoring public and private climate investment patterns is essential for countries to asses their progress, and to identify investments needs and develop financing strategies. However, gaps exist in tracking and reporting such flows. Find out more watching the replay of this event organised by CPI, UNDP et European Forest Institute.

More informations.



Implementation of long-term strategies

How to effectively engage finance ministers and private sector in the implementation of Long Term Strategies? To answer this question watch the replay of this event organised by I4CE and IDDRI.

More informations.



Planning for the transition

The climate transition requires such significant structural shifts and the coordination of so many actors that there is a general consensus on the need to develop transition plans. As well as coordinated financing strategies. How to do so ? I4CE, ADEME and Iddri have shared their ideas during this COP27 event.

More informations.


All replays of events organised by the Maintreaming Initiative and its partners will soon be available on the Initiative’s website.



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.

  • 11/10/2022 Foreword of the week
    COP27: the importance of national financing strategies for the transition

    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.

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 !