Mobilising A Trillion Dollars for Climate Mitigation in Poor Countries: A Proposal for a New Finance Facility against Climate Change

Main author: Kraemer, Moritz
Other authors: Volz, Ulrich
Format: Monographs and Working Papers           
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id eprints-41709
recordtype eprints
institution SOAS, University of London
collection SOAS Research Online
language English
language_search English
topic HG Finance
description Many developing countries are struggling under a high sovereign debt burden and rising interest rates that leave little fiscal space to meet their Nationally Determined Contributions under the Paris Climate Accord. To enable these countries to invest in climate mitigation, we propose the establishment of a Finance Facility against Climate Change (F2C2) that would raise $1 trillion. The facility would mobilize grant funding through the issuance of green bonds earmarked for emission reduction programmes in the eighty countries classified as low income or lower-middle income. The bonds would be backed by rich nations’ future commitments of official development assistance, which cover the green bonds’ debt service obligations. This would allow the necessary frontloading of climate spending in poor countries, while minimising the short-term impact on donor countries’ stressed budgets.
format Monographs and Working Papers
author Kraemer, Moritz
author_facet Kraemer, Moritz
Volz, Ulrich
authorStr Kraemer, Moritz
author_letter Kraemer, Moritz
author2 Volz, Ulrich
author2Str Volz, Ulrich
title Mobilising A Trillion Dollars for Climate Mitigation in Poor Countries: A Proposal for a New Finance Facility against Climate Change
publisher Centre for Sustainable Finance, SOAS University of London
publishDate 2024
url https://eprints.soas.ac.uk/41709/