4th Update Report: The Coming Financial Climate
This is the 4th Update Report of the UNEP Inquiry, it is focused on the challenge of financing the low-carbon transition.
Many approaches and instruments will be needed to deliver the financing needed. Public finance, funded by tax revenues and international transfers, will provide part of the solution. However such finance will be inadequate. Private capital will be needed to scale up investments, particularly in financing long-term, low-carbon, resilient infrastructure. Financial innovations that blend private and public institutions and resources will take us further in closing the gap, as of course will improved economic and industrial policies such as effectively pricing carbon.
This paper argues that reshaping key rules governing the financial system are needed to complement public and blended financing, and pricing and regulation in ensuring adequate and timely financing for sustainable development.
It draws on practical examples from Bangladesh, Brazil, China, France, South Africa, the UK and the US.