Breaking the Lock on Urban Climate Finance: An Exploration
In developing and emerging economies, a well-publicized gap exists between the amount of capital currently flowing into energy-dependent climate adaptation and mitigation projects and the projected capital actually needed for these projects. The gap is especially problematic for low-income countries, as the IMF reports that the poorest countries are the most vulnerable to the effects of climate change. The issue is particularly challenging in cities that produce 70-80 percent of GHG, and have intense needs to build basic service systems in an energy-efficient fashion while addressing adaptation. In fact, in these cases, the separation of mitigation and adaptation in climate responsive policy and projects leads to inefficient allocation of capital and resources.
This study queries under what conditions can local, regional, and national governments in emerging economies attract private capital for climate-related projects that engage or support linked mitigation and adaptation. The goal is to conduct in-depth research that provides case studies for use by public and private decision-makers, other scholars, and students on how national and sub-national governments have structured representative projects.