Fighting climate change is one of the greatest challenges of this century. Because of the asymmetrical structure of cause and effect (historical responsibility mainly in the North, special vulnerability of the South) and because of the rapid economical development of the emerging economies, North-South-relations are a critical factor for any solution of this problem. The "old", traditional industrialised countries will only move the newly industrialising countries to commit to mitigation activities if two conditions are fulfilled: they must commit to ambitious reduction targets for themselves and they must largely finance mitigation activities in the South and help the poorer states adapt to the changing climate. Since the international climate conference in Bali 2007, technological support and finance have thus been a core component of the post-2012 negotiations.
Even conservative estimates anticipate dozens of billions US-Dollar for mitigation and adaptation activities per year. That is why financing to fight climate change cannot solely rely on public money, but needs to additionally include more and more private finance.
This short study, originally written for the German development ministry BMZ in early 2008 and now updated, provides a compilation and evaluation of financing options on the multilateral (and partly bilateral) level and also an account of planned instruments and innovative proposals for new forms of cooperation among state and private actors.
Hermann E. Ott, Florian Mersmann, Wolfgang Sterk, Rie Watanabe,
Barbara Wegmann, Hans Curtius:
Internationale Finanzmittel für den Klimaschutz
Bestehende und zukünftige Finanzmechanismen im internationalen
Klimaregime zur Minderung von Treibhausgasen und zur Anpassung
an den Klimawandel
Wuppertal Paper no. 181 (June 2009)