UNDP publishes Investment & Financial Flows (I&FF) assessments
UNDP and partners conduct assessments to inform future climate finance expenditures
To effectively address climate change adaptation and mitigation, decision makers recognize the need for solid information in terms of current and future climate change-related investments and financial flows, as well as their timing, sources and investment entities.
Through a UNDP project, 15 countries conducted assessments of Investment and Financial Flows (I&FF) to respond to the question: ‘From a development perspective, what does my country need to do to address climate change in selected key sectors, and what financial landscape will be required to achieve those needs?’
Teams comprised of experts from the Ministries of Planning, Finance, Environment and key sectors, along with private sector, academia and non-governmental organizations, used a UNDP methodology to assess the questions:
- What are the adaptation/ mitigation options for selected key sectors in the next 25 years?
- Who is currently investing in the sector? Who are the major players & funding sources within government, private sector and households?
- What shifts/increases in I&FF will be needed in the sector?
- What will be the overall needs for additional I&FF to address climate change?
- What policies and incentives are suitable to induce the necessary shifts and changes?
Through the I&FF assessments, countries’ capacities were strengthened to:
- Nationally organize financial flows more effectively
- Mobilise additional resources
Countries that conducted I&FF assessments include: Bangladesh, Colombia, Costa Rica, Dominican Republic, Ecuador, Gambia, Honduras, Liberia, Namibia, Niger, Paraguay, Peru, Togo, Turkmenistan and Uruguay. The work was funded by the governments of Norway, Switzerland, and Finland, UNDP, and the UN Foundation.
For more information on the I&FF methodology, results from countries, and an extensive climate change database, visit: www.undpcc.org