Climate Finance
In order to achieve the climate change mitigation and adaptation objectives of the Paris Agreement, massive reorientation of financial flows is required. Article 2.1c of the Paris Agreement reflects the pledge to make “finance flows consistent with a pathway towards low greenhouse gas emissions and climate-resilient development”. The Climate Finance team at Perspectives aims at contributing to this objective by providing independent research and advisory services aimed at aligning financial flows with the Paris Agreement.
Some examples of our work in this area include research and policy dialogues on the reforms of the export finance system at national and international levels, evaluation of innovative instruments for Loss & Damage and publication of the “International Climate Finance Handbook”, to name only a few.
Our Work
Examples of our work:
- Paris alignment of Export Credit Agencies
- Handbook of International Climate Finance
- Innovative financial instruments for Loss and Damage
What Sets Us Apart
Our seasoned climate finance team provides independent and high-quality research and advisory services to governments, non-governmental organizations and financial institutions acting as a bridge between research and policymaking.
Public international climate finance is scarce, allocated in opaque ways, and often not spent effectively. Definitions of climate finance are manifold and controversial. Adaptation finance is grossly insufficient. Some countries are reporting climate finance in highly doubtful ways. Ex post evaluation of climate finance spending is rare and often not convincing. Methods to estimate the mobilization of private finance are not robust. Perspectives can help you to traverse the “jungle” of public climate finance and to understand what works and what does not.
Axel Michaelowa
International flows of public finance are not aligned with the Paris Agreement. Public finance institutions such as Export Credit Agencies (ECAs) still channel billions of dollars into fossil fuel projects every year. These public finance flows must urgently be redirected into investments that support the energy transition. Perspectives’ recent research in this area provides recommendations for reforms and informs policymakers at the national and international levels with the objective of fully aligning public finance with the Paris Agreement.
