In the Copenhagen Accord, the industrialized nations made the commitment to jointly mobilize USD 100 billion per annum by 2020 to support developing countries’ climate actions. The funding was described as coming, “from a wide variety of sources, public and private, bilateral and multilateral, including alternative sources of finance”. A multitude of sources and instruments of delivery are currently accepted as climate finance, although two core sources of climate finance are public budgets and private capital, which can be channelled through various actors and instruments such as:
- National overseas development agencies
- International climate funds (e.g. Climate Investment Funds, GEF, Green Climate Fund)
- Multilateral development banks (e.g. EBRD, World Bank, African Development Bank)
- Public and private pension funds, insurance companies, sovereign wealth funds, mutual funds and foundations
- Debt instruments (e.g. green bonds)
Due to our network of contacts in many of the above agencies and institutions, and based on our technical and economic know-how, Carbon Limits is perfectly placed to support both donors and recipients in the identification and development of relevant projects and programmes, and in the design and implementation of relevant funding instruments. We continue to assist governments in identifying and developing projects and programmes which can attract climate finance. We are also called upon by donor agencies to provide support in the design of financing mechanisms which are transparent, efficient and ensure environmental integrity.