Mobilizing Climate Finance for Clean Energy and Energy Efficiency Investments

Climate Change
Written By Cate Urban

A Primer for Integration into USAID Energy Sector Activities

What Is Climate Finance?

In the context of USAID energy programming, climate finance refers to the provision or mobilization of financial resources to assist developing countries in drawing down greenhouse gas (GHG) emissions while building energy sector resilience and adapting to the impacts of climate change.

There are several methods for climate fnance, performed by diverse stakeholders. Grants, loans, loan guarantees, bonds, equity investments, and other funds for clean energy investments—as well as specialized climate fnance facilities, such as the Global Environment Facility and the Green Climate Fund are all examples. Additional mechanisms include technical assistance, training, and capacity building programs that enable partners to mobilize funding from the public and private sectors.

Climate finance is foundational in realizing the decarbonization targets each country has committed to in their Nationally Determined Contributions (NDCs) under the 2015 Paris Agreement. The International Energy Agency (IEA) calculated that clean energy investment in developing countries needs to expand by more than seven times, to above $1 trillion per year by the end of the 2020s, to put the world on track to reach net-zero emissions by 2050.

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A Primer for Integration into USAID Energy Sector Activities

Source: USAID
Year: 2022

Cate Urban

I founded Urban Web Renovations after 11 years of leading global marketing strategies for nonprofit organizations in Washington, DC. In each position I held, one thing remained the same – my passion for managing web sites and social media accounts for both organizations and major thought leaders.

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