Finance for climate action rising, but still ‘far to go’—analysts

(Eco Business, 28 Nov 2018) Much more investment is needed to transition economies onto a low-carbon path, and adapt to climate change impacts.

Investment to tackle climate change is increasing around the world but remains far too low to limit global warming and avoid its most harmful consequences, as governments have committed to do, analysts said on Tuesday.

report from the Climate Policy Initiative (CPI), an international think tank, said initial estimates for global flows of climate finance in 2017 ranged from about $510 billion to $530 billion, a 12 to 16 per cent increase from 2016.

Updated figures for 2015 and 2016, based on new data becoming available, showed an annual average flow of $463 billion, which was 27 per cent higher than in 2013-2014.

CPI said the early figures for 2017 reflected rising investment in electric vehicles and funding from development banks. Renewable energy investment held steady after dropping 16 per cent in 2016 on falling costs and fewer projects.

But climate finance is still only a small share of what will be needed to decarbonise economies in the coming decades, as governments vowed to do in the 2015 Paris Agreement, it noted.

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Eco Business, 28 Nov 2018: Finance for climate action rising, but still ‘far to go’—analysts