Expert Meeting on Domestic Climate Finance co-organized with the European Environment Agency (EEA)
On 25th October 2016 in Copenhagen, the European Environment Agency and I4CE – Institute for Climate Economics hosted an expert meeting convening experts on the tracking of domestic financial flows dedicated to climate action in Europe.
The expert meeting brought together government representatives, research centers and civil society actors, with the aim of establishing how an improved understanding of climate-related investment and financial flows can support the achievement of climate objectives at national, European and global levels.
Key messages from the expert meeting included:
- Systematic tracking of domestic climate investment and related financing flows, also called climate finance “landscapes”, is a powerful process for supporting the development, enforcement and strengthening of national climate and energy policy, contributing to the transition towards to a low-carbon and climate-resilient economy.
- The transition to a low-carbon and climate-resilient economy requires an unprecedented redirection of social and economic activities, and thus also investment and related finance to address the challenges posed by climate change. To that end, the Paris Agreement sets the objective to “make all financial flows consistent with a pathway towards low-emissions, climate-resilient development”.
- Aligning financial flows with EU and national objectives – expressed in Nationally Determined Contributions, Low-Carbon Development Strategies, Integrated National Energy and Climate Plans and National Adaptation Plans – will be key for a smooth and cost-effective transition towards a low carbon, climate resilient and competitive economy.
- Shifting and scaling up financial flows to meet national climate and energy objectives require an improved knowledge base as well as policy and project assessment tools for shifting domestic investment patterns and to engage financial and economic actors. Complement other policy assessment tools (macro-economic modelling of alternative investment scenarios, cost-benefit analysis, cost-effectiveness analysis, etc.) as well as project assessment tools (return on investment analysis, financial sustainability analysis, financial risks analysis, project performance indicators, environmental impact indicators, external costs of projects, cost-benefit analysis, etc.).
A summary brief has been co-authored by the EEA and I4CE and is available below.