Search

Can the World Bank effectively mobilize private finance to developing countries to support climate change transition? This paper demonstrates that the World Bank's market-based approach, exemplified by its Maximizing Finance for Development (MFD) approach, under-serves areas with a higher need for mitigation and adaptation finance. As such, MFD seems more aligned with donors' interests in climate finance burden sharing, than with recipients' needs. While the World Bank now 'talks the talk' of effectively leveraging private development finance, findings on MFD show that the organization does not yet 'walk the walk'. The paper uses Qualitative Comparative Analysis to show that the MFD agenda is leading the World Bank to systematically ignore countries with low levels of development, poor governance structures, and higher levels of climate risk. By showing that the Bank's MFD approach is insufficient to incentivize private investment in the countries that need adaptation and mitigation finance the most, this article contributes to the critical scholarship on the World Bank that highlights its tendency to behave more like a financial institution than as a development agency, to the detriment of the most vulnerable global populations. [ABSTRACT FROM AUTHOR]

Introduction: This research investigates into the complex dynamics of climate finance in Somalia, a vulnerable region facing the dire consequences of climate change. The study aims to assess how financial inputs for climate-related projects align with the actual needs and identify critical factors that influence funding effectiveness. Methods: A dual-methodological approach was employed, integrating both multiple regression analysis and Support Vector Machine (SVM) techniques. This mixed-method analysis facilitates a robust examination of climate finance data to dissect the relationships and impacts of various determinants on funding effectiveness. Results: The results indicate that adaptation finance, robust governance, and the scale of financial interventions significantly enhance the effectiveness of climate finance flows. However, mitigation finance and aspects related to gender equality displayed less significant impacts. Notably, the study identifies a pervasive underfinancing of climate projects in Somalia, illustrating a significant gap between the needed and actual funds disbursed. Discussion: The findings underscore the need for enhanced governance frameworks and targeted large-scale financial interventions to optimize the allocation and impact of climate finance in vulnerable regions like Somalia. By quantifying the influence of adaptation finance and governance, this study contributes new insights to the literature on climate finance effectiveness and suggests practical strategies for policymakers and practitioners to improve climate resilience initiatives. [ABSTRACT FROM AUTHOR]

We examine the determinants of climate-related development finance flows to the transportation sector and their relationship with CO2 emission levels. The mitigation fund allocation is particularly correlated with the demographic characteristics of recipient countries; however, the correlation with per capita income and emissions seems to be weak. In contrast, equity considerations appear to be the main determinants of adaptation fund allocation. Finally, we find some evidence of a significant negative relationship between mitigation investments and emissions per capita and while the overall effect is modest, it tends to be most marked in countries with the highest per capita emissions. Thus, the fact that countries with the highest emissions per capita are not receiving relatively more investments may be hampering the effectiveness of climate finance. [ABSTRACT FROM AUTHOR]

International climate finance institutions increasingly articulate their goals as catalyzing transformation, but can these institutions bring about deep structural change when they reflect the same liberal logics that arguably created the challenges they are designed to address? In this analysis, we use a virtual ethnography of Green Climate Fund (GCF) board meetings. We ask: how does the GCF navigate the tensions between different conceptualizations of transformation? Our sample included deliberations on 181 projects, and over 42 h of board meetings. Discussions were thematically coded to reveal concerns raised by board members and observers, followed by a structured content analysis. We found that while the transformational potential of proposals featured prominently in deliberations, there was no unified vision or clear definition of transformation. However, approaches that emphasized economic efficiency, technology and infrastructure, and market mechanisms and the private sector aligned with the liberal logic of the fund, while proposals that framed transformation in other ways faced more scrutiny. Board members and observers also raised concerns that proposals had the potential to increase vulnerability or cause harm. Despite this, almost all projects in our sample were approved, suggesting that more work is needed to expand beyond liberal understandings of transformation. [ABSTRACT FROM AUTHOR]

Copyright of World Food Policy is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Leveraging the co-benefits of investments in health and climate can be best achieved by moving away from isolated financing approaches and adopting co-financing strategies, which aim to improve the outcomes of both sectors. We propose a framework for studying co-financing for health and climate that considers the degree of integration between sector funding, and whether arrangements are 'passive', when cross-sectoral goals are indirectly affected, or 'strategic', when they are pre-emptively supported to build resilience and sustainability. We conducted a rigorous, evidence-focused review to describe co-financing mechanisms according to a framework, including the context in which they have been employed, and to identify enablers and barriers to implementation. We searched the international literature using Pubmed and Web of Science from 2013 to 2023, the websites of key health and climate agencies for grey literature and consulted with stakeholders. Our review underscores the significant impact of climate change and related hazards on government, health insurance and household health-related costs. Current evidence primarily addresses passive co-financing, reflecting the financial consequences of inaction. Strategic co-financing is under explored, as are integrative co-financing models demanding cross-sectoral coordination. Current instances of strategic co-financing lack sufficient funding to demonstrate their effectiveness. Climate finance, an under used resource for health, holds potential to generate additional revenue for health. Realizing these advantages necessitates co-benefit monitoring to align health, climate mitigation and adaptation goals, alongside stronger advocacy for the economic and environmental benefits of health investments. Strategic co-financing arrangements are vital at all system levels, demanding increased cross-sectoral collaboration, additional funding and skills for climate integration within health sector plans and budgets, and mainstreaming health into climate adaptation and mitigation plans. Supporting persistent health needs post-disasters, promoting adaptive social protection for health and climate risks, and disseminating best practices within and among countries are crucial, supported by robust evaluations to enhance progress. [ABSTRACT FROM AUTHOR]

Achieving international climate targets may require more than $8 trillion in annual investments to 2030. We investigate the extent to which third‐party environmental scores for banks reflect lending and underwriting in fossil‐fuel and low‐carbon industries, and how ratings are influenced by outward signals of commitment to climate action. We provide empirical evidence on the performance of leading Environmental, Social and Governance (ESG) ratings providers and offer actionable guidance as to how ESG ratings may be improved in this context. We find that banks' environmental scores are most strongly influenced by signals of future intention regarding climate action, rather than by prior and current lending and underwriting behaviour. Our analysis highlights the need for rating providers, when constructing environmental scores for banks, to place more weight on key capital allocation decisions, and less on future intentions. We recommend that banks disclose breakdowns of their financing activities in key carbon‐intensive and low‐carbon industries. [ABSTRACT FROM AUTHOR]

Defaunation of tropical forests, particularly from unsustainable hunting, has diminished populations of key seed dispersers for many tree species, driving shifts in forest community composition toward small‐fruited or wind‐dispersed trees with low wood density. Such shifts can reduce aboveground biomass, prompting calls for overexploitation to be included in bioeconomic policy, but a synthesis of existing literature for wildlife impacts on carbon stores is lacking. We evaluated the role of wildlife in tropical forest tree recruitment and found that it was critical to tropical forest carbon dynamics. The emerging financial value of ecosystem services provided by tropical forest fauna highlights the need for carbon‐based payments for ecosystem services schemes to include wildlife protection. We argue for three cost‐effective actions within carbon finance schemes that can facilitate wildlife protection: support land security opportunities for Indigenous peoples and local communities; provide support for local people to protect forest fauna from overexploitation; and focus on natural regeneration in restoration projects. Incorporating defaunation in carbon‐financing schemes more broadly requires an increased duration of carbon projects and an improved understanding of defaunation impacts on carbon stores and ecosystem‐level models. Without urgent action to halt wildlife losses and prevent empty forest syndrome, the crucial role of tropical forests in tackling climate change may be in jeopardy. [ABSTRACT FROM AUTHOR]

In this article, we examine the contestations and compromises that underpin the Paris Agreement's enhanced transparency framework, with the aim to analyze whose climate action priorities are reflected in these arrangements. Key mandatory obligations of the transparency framework relate to submission of greenhouse gas inventories and reporting and review of mitigation-related climate actions. Less analyzed are the non-mitigation focused transparency provisions, particularly those relating to adaptation, loss and damage and financial support, all of which are of key importance to developing countries. We address this research gap here by unpacking what different groups of countries desired with regard to these less examined aspects of the enhanced transparency framework, in the lead-up to finanalization of the Paris Agreement in 2015, and the nature of the political compromises reached on each. Furthermore, we analyze how these agreed transparency provisions are being operationalized since 2015. We find that many of the compromises reached on the scope of the enhanced transparency framework, but perhaps even more so in its subsequent operationalization, marginalize certain aspects of reporting and review that are of the highest priority to developing countries. These include, for example, reporting on adaptation needs, on having voluntary information on loss and damage be reviewed by international experts, and having access to comparable and actionable reporting on support provided by developed countries. This highlights the need for future research to assess the domestic consequences of engaging in global climate transparency arrangements for developing countries; and whether and how such engagement aligns with domestic priorities. Key policy insights: The Paris Agreement's enhanced transparency framework goes beyond a mitigation-focus to include adaptation, loss and damage and support, which was a key demand of developing countries, yet important caveats lie in its detailed operationalization. Reporting on adaptation needs, a priority for developing countries, is covered only in a cursory manner in the enhanced transparency framework. Loss and damage too features only marginally in the enhanced transparency framework, as a sub-element of adaptation reporting and review. Reporting on support provided is mandatory for developed countries, as demanded by developing countries, but the devil is in the detail, with provision of ex-ante information relegated to a different process and little progress towards common accounting methods. It remains unclear whether participation in the enhanced transparency framework will help developing countries to generate information relevant to furthering domestic climate action priorities. [ABSTRACT FROM AUTHOR]

The planet earth is facing an unprecedented level of environmental crisis fuelled primarily by the exorbitant level of carbon stock in the atmosphere. Hence, our sustainable living in this planet depends greatly on mitigating anthropogenic greenhouse gas emission. This calls for a paradigm shift of energy epicentre from traditional fossil fuels to renewable energy. The transition, however, is not smooth because numerous obstacles deter large-scale penetration of renewable energy. This study aims to examine the impact of financial stress on renewable energy consumption in the USA. We avail nonparametric and quantile econometric techniques on monthly data between 1986 and 2016. Results show a negative effect of financial stress on renewable energy consumption in the long run. Analysis further shows that financial stress unidirectionally Granger causes renewable energy in the long run—with greater prominence in the upper half of the distribution. However, consumers tend to substitute fossil fuel with renewable energy during the time of higher financial stress, perhaps as an attempt to seek relief from augmented financial strain. This implies that the benefits of adopting renewables are considerable notwithstanding the (energy generation) project scale and adoption rate in the economy. [ABSTRACT FROM AUTHOR]

Numbers do matter; the Intergovernmental Panel on Climate Change (IPCC)'s 2010 data that the waste sector is responsible for just 3% of global greenhouse gas (GHG) emissions has led to the misperception that solid waste management (SWM) has little to contribute to climate mitigation. Global efforts to control methane emissions and divert organic waste from landfills had already reduced direct emissions. But end-of-pipe SWM has also been evolving into more circular waste and resource management, with indirect GHG savings from the 3Rs (reduce, reuse, recycle) which IPCC accounts for elsewhere in the economy. The evidence compiled here on both direct emissions and indirect savings demonstrates with high confidence that better waste and resource management can make a significant contribution to climate mitigation, and must form a core part of every country's nationally determined contribution. Even the most advanced countries can still achieve much from the 3Rs. In the Global South, the challenge of extending waste collection to all and stopping open dumping and burning (sustainable development goal 11.6.1), essential to improve public health, can be turned into a huge opportunity. Moving early to divert waste from landfill by separation at source and collecting clean organic and dry recycling fractions, will mitigate global GHG emissions, slash ocean plastics and create decent livelihoods. But this can only happen with targeted climate, plastics and extended producer responsibility finance; and help to local communities to help themselves. [ABSTRACT FROM AUTHOR]

Although small and medium-sized enterprises (SMEs) contribute considerably to Germany's carbon emissions, regional savings and cooperative banks − SMEs' most important financiers − hardly consider this aspect in lending to these businesses. However, given Germany's commitment to climate neutrality by 2045, suitable approaches for injecting climate finance into these SME lending processes are greatly required. Against this background, the paper at hand aims to introduce the specific case of regional banks into the debate on green finance and green banking and suggest future research in this context. In discussing the state of research on the peculiarities of regional savings and cooperative banks, we outline the resulting opportunities and limitations for climate impact assessments in SME lending. We argue that while the dual bottom-line orientation of regional banks in Germany precludes them from applying simple positive or negative screenings, their in-depth knowledge about local clients and circumstances enables them to be active and engaging partners for the green transformation of SMEs. Nonetheless, we explain why developing solutions to utilise this knowledge for climate finance by integrating climate impact assessments into routine lending processes remains a particularly challenging task. [ABSTRACT FROM AUTHOR]

Amidst increased climatic disasters, persisting social evils, and governance concerns, sustainable finance and its new and innovative financial instruments have gained prominence across stakeholders globally. Green, social sustainability, sustainability‐linked, and transition (collectively GSS+) debt have a market worth USD 3.9 trillion since 2007 (Climate Bonds Initiative, 2018). We provide a comprehensive review of the evolution and future research directions of the sustainable finance research field by analysing overall publication trends, subject categories, co‐authorship networks, keywords, countries and institutions, journal co‐citation, and cluster analysis. Findings include the emergent need for greater collaboration among authors globally. Future research directions include research questions for themes such as carbon emission trading, financial inclusion, reporting of proceeds related to sustainable finance to prevent greenwashing, the impact of climate change and climate finance on sustainable finance, mobilisation of sustainable finance through green bonds, and technological interactions between sustainable finance and blockchain and artificial intelligence. The study also provides implications for the stakeholders. [ABSTRACT FROM AUTHOR]

The Paris Agreement (PA) opens for parties to use Internationally Transferred Mitigation Outcomes (ITMOs) for implementing their Nationally Determined Contributions (NDCs). This paper analyzes spot, forward and options market trading of ITMOs up to the end of the first PA trading period (2030), given uncertainty about (1) the fulfillment of parties' NDC targets, and (2) the existence and functioning of the ITMO markets, as ITMO banking beyond 2030 is not allowed. Closed-form solutions are derived for options trading and its welfare impacts given uniform distributions of parties' uncertainties about fulfilling their individual commitments. Access to call options for late ITMO purchases leads to larger forward ITMO sales or less current mitigation, help parties stay in NDC compliance in 2030, brings early revenue to low-income parties, and is welfare enhancing for all parties. Access to put options for late ITMO sales is less important, and will not be used when put options are not subsidized and parties are risk neutral. The ITMO markets can be enabled by donor-provided climate finance. Effectively functioning ITMO markets can dramatically reduce parties' costs of achieving their NDCs, and could increase parties' ambitions, then also reducing global greenhouse gas emissions under the agreement. [ABSTRACT FROM AUTHOR]

Abstract This study aimed to investigate the complex landscape of climate finance, assessing the adequacy, predictability, and implications for sustainable development in least developed countries (LDCs). This study is motivated by the pressing need to assess the adequacy, predictability, and implications of climate finance for sustainable development in least developed countries (LDCs). Employing an econometric framework, this study utilizes ARIMA models to analyze time series data (from 2000 to 2021) on climate finance. The analysis revealed a notable gap between the needed and actual climate funding received by LDCs. Despite an annual requirement of $93.7 billion according to the UK-based International Institute for Environment and Development (IIED), LDCs have only received an average of $14.8 billion annually since 2015. The study suggests that climate funding for LDCs lacks predictability and falls short in meeting their needs, potentially facing an 80% decrease by 2030 under certain scenarios. It advocates for a strategic revamp in climate finance mechanisms to ensure adequacy and predictability, urging policymakers and international funding bodies to adopt more robust, fair, and needs-based approaches to climate financing. This research emphasizes the responsibility of developed nations and global agencies in bridging the considerable funding gap faced by LDCs. By integrating advanced forecasting techniques with a comprehensive analysis of global economic and political factors, this study sheds light on the challenges LDCs encounter in securing stable and sufficient climate finance, stressing the urgency for systemic reforms in global climate finance policies.

The Colorado and Mississippi River basins are crucial for water supply, agriculture, and ecological stability in the U.S., yet climate change, water management practices, and energy sector demands pose significant challenges to their sustainability. This paper highlights the potential of leveraging the Voluntary Carbon Market (VCM) to address these challenges by creating new revenue streams and incentivizing sustainable water management practices. It provides high-level estimates by extrapolating from existing literature. The paper finds that water projects in these basins could generate over 45 million carbon credits annually, potentially attracting around USD 4.5 billion in investments over the next decade. However, challenges such as high costs, complex regulations, and stakeholder coordination must be addressed. The paper also identifies opportunities for advancing water resiliency projects, including increasing public awareness, engaging corporations, and utilizing innovative financing mechanisms. Recommendations include promoting the VCM–water relationship, encouraging methodology innovation, developing pilot programs, investing in digital monitoring technologies, and conducting localized analysis to optimize carbon credit potential in water management. In conclusion, this paper quantifies the potential of water projects to generate carbon credits and indicates that integrating carbon markets with water management strategies can significantly contribute to global climate goals and improve water resilience in these critical regions. [ABSTRACT FROM AUTHOR]

High forest low deforestation jurisdictions (HFLDs) contain many of the world's last intact forests with historically low deforestation. Since carbon financing typically uses historical deforestation rates as baselines, HFLDs facing the prospect of future threats may receive insufficient incentives to be protected. We found that from 2002 to 2020, HFLDs (n = 310) experienced 44% higher deforestation rates than their historical baselines, and 60 HFLDs underwent periods of high deforestation (deforestation rate > 0.501%) at 0.983 ± 0.649% (mean ± SD)--a rate 7.5 times higher than the 10-y historical baseline of all HFLDs. For HFLDs to receive sufficient carbon finance requires baselines that can better reflect future deforestation trajectories of HFLDs. Using an empirical multifactorial model, we show that most contemporary HFLDs are expected to undergo higher deforestation from 2020 to 2038 than their historical baselines, with 72 HFLDs likely (>66% probability) to undergo high deforestation. Over the next 18 y, HFLDs are expected to lose 2.16 Mha y-1 of forests corresponding to 585 ± 74 MtCO2e y-1 (mean ± SE) of emissions. Efforts to protect HFLD forests from future threats will be crucial. In particular, improving baselining methods is key to ensuring that sufficient financing can flow to HFLDs to prevent deforestation. [ABSTRACT FROM AUTHOR]

Research Summary: We conduct a multicountry analysis and show that there is a strong and significant positive relationship between climate finance and entrepreneurship, even after controlling for conventional macroeconomic and institutional factors commonly reported in the literature. Specifically, a 10% increase in climate finance is linked with a 2% increase in entrepreneurial activity across most countries. There are important heterogeneities in this nexus as it relates to fossil fuel exporting countries—the main "losers" from a global move away from fossil fuels. We find that although fossil fuel exporting countries exhibit notably faster rates of entrepreneurship growth, the interaction with climate finance in these countries is negatively related to entrepreneurial activity. This finding holds across different types of climate finance—adaptation and mitigation—highlighting its robustness. Managerial Summary: It is often suggested that more finance will lead to more entrepreneurship. We conduct a multicountry analysis and add nuance to this notion. We find that although there is a strong and significant positive relationship between climate finance and entrepreneurship in most countries, this is not always true for fossil fuel exporting countries. Fossil fuel exporting countries, despite experiencing faster entrepreneurial growth, exhibit a negative interaction between climate finance and entrepreneurship. For managerial practice, these results emphasize the importance of targeted strategies in deploying climate finance. Policymakers and investors should consider nuanced approaches that address the specific economic dependencies and regulatory environments of fossil fuel exporting countries. [ABSTRACT FROM AUTHOR]

To fight climate change and reduce their increasing pollution levels, developing nations must have access to worldwide public climate funds. In the view of developing nations, meeting their commitments to reduce emissions under the Paris Agreement depends on receiving funding for climate-related initiatives. According to earlier studies, financing developing nations may help them meet their climate targets. The most recent data on climate money and NDCs are used in this research to examine the subject from a practical standpoint. Two research approaches were used in this study to investigate the impact of climate funding on the objectives of recipient nations. Data indicated that it was excellent regardless of the size of the effect. Developing nations' attempts to reduce emissions were more affected than those of the least developed nations, especially those with economies centred on tiny islands. This paper outlines how to solve the issue, but it is just the beginning. By informing their handling of climate money, investors can gain poorer nations' confidence, according to this research. [ABSTRACT FROM AUTHOR]

This study presents an innovative financial model that integrates the debt-for-climate swap mechanism with Article 6 of the Paris Agreement, specifically designed to support Africa's transition to clean energy. The model connects debt-for-climate swaps with the creation of internationally transferred mitigation outcomes (ITMOs), offering mutual benefits for both debtor and creditor nations. This approach aims to improve the debt sustainability of African countries while strengthening their climate resilience by combining Article 6 of the Paris Agreement with Official Development Assistance (ODA). Additionally, this model aligns with key Sustainable Development Goals (SDGs), including SDG 7 (Affordable and Clean Energy), SDG 13 (Climate Action), and SDG 17 (Partnerships for the Goals). Furthermore, the study proposes a restructuring of existing environmental safeguards by incorporating the "Do No Significant Harm" (DNSH) criteria and environmental contribution indicators to ensure alignment with the minimum safeguards mandated by Article 6 and international development standards. Through quantitative analysis, our findings indicate that the proposed debt-for-climate swap model could significantly contribute to Africa's clean energy transition, address the region's external debt challenges, and enhance climate resilience. [ABSTRACT FROM AUTHOR]

Economic green transition is the change of economic development mode under environmental constraints; this process will generate huge demand for credit financing. Understanding the connection between credit allocation and environmental performance is crucial for the coordinated development of the economy and environment. Utilizing the Chinese Industrial Enterprises Database, I constructed a city-level green credit index and compiled panel data from 2006 to 2013 for 282 selected cities in China. A spatial model was employed to explore the influence of green credit on the economic green transition. The findings reveal a positive relationship between green credit and economic green transition during the study period. Green credit not only enhances local green total factor productivity but also exerts beneficial impacts on adjacent areas though demonstration effects. Additionally, the reallocation of credit resources and the innovation of clean technologies are identified as key mechanisms through which green credit fosters a greener economy. However, the study also finds that the impact of green credit is moderated by factors such as a high reliance on natural resources, the underdevelopment of market intermediaries, and excessive governmental intervention, which can undermine its effectiveness. Furthermore, the efficacy of green credit exhibits regional heterogeneity; it has a significant positive impact in the eastern regions of China, while its influence appears to be non-significantly positive in the central and western regions. This study enriches the research on the macroeconomic impacts of green credit, offering practical evidence and theoretical support for the implementation of green credit policies by local governments in China. [ABSTRACT FROM AUTHOR]

A transition to clean fuels and technology for cooking is increasingly recognised as a cornerstone of sustainable development. However, sufficient, appropriate, affordable finance to support the transition is lacking. Grounded in primary data collection via expert interviews, this study's research objective was to critically assess development finance institutions' (DFIs) delivery of climate and development finance to address cooking poverty. Interview findings underscore DFIs' important role in the transition, including to create the ecosystem conditions conducive to sustained investment. However, as a group they are not demonstrating the risk appetite and financial solutions that clean cooking markets need. Nor are they operating with the agility and flexibility required for rapid scale-up. Consequently, DFIs are not optimally fulfilling their mandates to create additionality and mobilise private capital in these markets. Interviewees call for DFIs to reconsider their approach, and we rely on these findings to posit a theory of change for clean cooking finance. [ABSTRACT FROM AUTHOR]

Information on the benefits of green budget tagging (Green budget tagging refers to itemization and linking of every budget item with climate action, mitigation, adaptation, or both) in developing countries could help boost the uptake of this practice and in turn help these same developing countries to mobilize climate-related development finance. We apply double differences in means econometric analytical approach to evaluate the association between green budget tagging (GBT) and target outcome variables of climate-related finance and CO2 emissions. The results show that all 32 developing countries that have undertaken green budget tagging are also associated with larger inflows of climate-related finance. Among the adopters, climate-related finance inflows have been significantly larger for countries with externally-initiated green budget tagging than for those with internally-initiated tagging. The results also show that a minimum level of climate-related finance is required to achieve CO2 emissions reduction. However, the current mean yearly inflow of climate-related development finance falls short of the level that drives emissions reduction. These findings point to the importance of green budget tagging and to the need to upscale climate-related finance inflows to propel improvement in environmental quality. Although green budget tagging is a useful tool for mobilizing external development finance, current external finance inflows are insufficient to achieve ambitious emission reductions. Immense effort is therefore required to mobilize the adequate scale of climate-related finance from both external and other sources. Green budget tagging can be a crucial tool for mobilizing climate-related finance and improving environmental quality in developing countries. To entice climate-related development finance, developing countries need to clearly define climate-related projects in their national budgets. Climate finance mobilization policies designed for reducing emissions are not complete unless they emphasize and promote the scale of inflows. Hence, policymakers should put greater effort into mobilizing adequate finance (from both external and domestic sources) to drive emissions reduction. [ABSTRACT FROM AUTHOR]

Developing countries, including Small Island Developing States (SIDSs) and Least Developed Countries (LDCs), are exceptionally vulnerable to climate change due to their distinct geographical and environmental characteristics. Escalating sea levels and heightened salinity levels imperil freshwater reserves, while warmer ocean temperatures and acidification disrupt water demand, tourism, health services, and fisheries. Concurrently, these countries bear the brunt of water shortages, flooding, and declining water quality. However, significant barriers such as limited financing capacities to fund water security initiatives, exacerbated by a growing debt crisis marked by escalating interest rates and inflation, hinder developmental progress and investments in climate adaptation and mitigation endeavors. Consequently, there arises a critical necessity to harness innovative financial mechanisms to transform these debts into opportunities that support effective climate action. This paper explores the potential of debt-for-climate swaps as a catalyst for advancing transformative wastewater projects, focusing on their strategic deployment to underpin critical initiatives. Through case studies and empirical evidence, the paper elucidates how debt-for-climate swaps can enhance sustainable wastewater management systems in developing countries and delineates best practices for leveraging these mechanisms and the roles and responsibilities of key stakeholders, including governments, policymakers, the private sector, communities, and climate financial institutions. Combining theoretical insights with tangible examples, this paper furnishes a comprehensive framework for harnessing debt-for-climate swaps to enhance water security and resilience in developing countries. It offers actionable strategies for policymakers, practitioners, and stakeholders to navigate the complex terrain of climate change and engender sustainable development. [ABSTRACT FROM AUTHOR]

Critique surrounding climate finance is mounting against a backdrop of an escalating ecological crisis manifesting unequally across the globe. This paper uses learnings from racial capitalism to unpack the modalities of climate finance, using the Pacific region as an illustrative case. It argues that racial capitalism is enacted through modalities of climate finance, in part, by the erection of walls. One type of wall enacted by climate finance is epistemic: its definitions place it as the inherent object of Northern interventions. Moreover, financial walls are maintained through debt in climate finance, creating borders of deprivation through ongoing practices of indebting already burdened regions. The paper also highlights the way borders can manifest through regulation, in particular, through climate funds delineating arduous benchmarks of already burdened states. These walls contribute to the racialized process of creating 'sacrifice zones': places that have borne the cost of benefits accrued elsewhere, left without in a state of depletion. The paper explores the material futures that are being enacted by these modalities of climate finance through the case of climate migration. Yet these dystopian futures must not be taken for granted, rather, the walls which separate climate affected communities from hopeful futures must be dismantled. [ABSTRACT FROM AUTHOR]

We investigate how negative news coverage of borrower's impacts on climate change affects bank loan contracting. Using a sample of publicly traded US firms for the period 2000–2016, we show that loans initiated following negative news coverage about firm's adverse climate-related incidents have significantly higher spreads, shorter maturities, more covenant restrictions, and a higher likelihood of collateral security requirements. We find no changes in client firm's credit fundamentals after such incidents, indicating that lender's reputational concerns rather than the longer-term environmental impacts of their borrower's actions are the primary drivers of these changes. This observation highlights the need for increased scrutiny of banks' lending practices to ensure that they are genuinely committed to sustainability rather than merely engaging in symbolic actions. [ABSTRACT FROM AUTHOR]

This study aimed to investigate the complex landscape of climate finance, assessing the adequacy, predictability, and implications for sustainable development in least developed countries (LDCs). This study is motivated by the pressing need to assess the adequacy, predictability, and implications of climate finance for sustainable development in least developed countries (LDCs). Employing an econometric framework, this study utilizes ARIMA models to analyze time series data (from 2000 to 2021) on climate finance. The analysis revealed a notable gap between the needed and actual climate funding received by LDCs. Despite an annual requirement of $93.7 billion according to the UK-based International Institute for Environment and Development (IIED), LDCs have only received an average of $14.8 billion annually since 2015. The study suggests that climate funding for LDCs lacks predictability and falls short in meeting their needs, potentially facing an 80% decrease by 2030 under certain scenarios. It advocates for a strategic revamp in climate finance mechanisms to ensure adequacy and predictability, urging policymakers and international funding bodies to adopt more robust, fair, and needs-based approaches to climate financing. This research emphasizes the responsibility of developed nations and global agencies in bridging the considerable funding gap faced by LDCs. By integrating advanced forecasting techniques with a comprehensive analysis of global economic and political factors, this study sheds light on the challenges LDCs encounter in securing stable and sufficient climate finance, stressing the urgency for systemic reforms in global climate finance policies. [ABSTRACT FROM AUTHOR]

Copyright of Informacion Comercial Espanola Revista de Economia is the property of S.G.E.E.I.P.C., Secretaria de Estado de Comercio, Ministerio de Industria, Comercio y Turismo and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

We studied the relationship between sustainable investment indexes and examine whether this relationship varies in bullish, bearish, and stable financial markets. To understand this issue more deeply, we analyzed the connectedness between three indexes—the Sustainable Impact investments, Paris-aligned stocks, and green bonds indexes—using the daily closing prices from 1 June 2017 to 15 April 2024, encompassing 1793 observations. We used a quantile vector autoregressive (QVAR) model to understand the dynamic relationship among the considered indices. The findings indicate that sustainable investments are strongly interconnected in both high and low quantiles, but this connection weakens significantly during periods of market stability. The Sustainable Impact investments and Paris-aligned stocks indexes are net transmitters of impacts to other sustainable alternatives, while the green bonds index is a net receiver. We also observed an increase in interconnectedness across all quantiles during the pandemic, the Russia–Ukraine military conflict, and changes in the European Union and the United States' monetary policies. [ABSTRACT FROM AUTHOR]

The urgent need for climate action and sustainable development has elevated the importance of Public-Private Partnerships (PPPs) in climate finance. While PPPs are crucial for mobilizing resources for climate finance, the factors influencing the willingness of different stakeholders to participate in these partnerships are not well understood. This study employs a multifaceted analytical approach, integrating theoretical insights from Stakeholder Theory, Transaction Cost Economics, and Agency Theory. We conduct a Tobit regression analysis to investigate the determinants of willingness to participate in climate finance PPPs among three key stakeholder groups: Governors, Firms, and the Public. Using survey data collected from over 1600 participants in Vietnam's Mekong Delta, this research examines the influence of perceived benefits, perceptions of PPPs, the importance of climate finance, trust and transparency, and multilateral support on stakeholders' willingness to participate in PPPs for climate finance. The analysis reveals that the perceived benefits of PPPs and trust and transparency universally enhance the willingness to participate across all groups of stakeholders. However, the impact of positive perceptions of PPPs varies, playing a crucial role for firms and the public but not for governors. The study also highlights the significance of understanding and emphasizing the importance of climate finance, particularly when combined with trust and transparency, in encouraging stakeholder participation. Furthermore, by revealing the varied impacts of determinants across stakeholder groups, this research points to the necessity of adopting differentiated approaches to maximize participation in PPPs for climate finance, thereby supporting sustainable development and climate action goals. [ABSTRACT FROM AUTHOR]

Copyright of Strategy & Development Review is the property of Strategy & Development Review and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

AbstractThis study seeks to find out whether climate finance (CF) geared toward 35 Sub Saharan Africa (SSA) countries is assisting to achieve food security in the continent. To achieve this objective, we adopted FAO’s classification of food security of 4 main dimensions: food availability, access, stability and utilization and use principal component analysis (PCA) to generate food security indexes corresponding to the different dimensions of food security. The data was analyzed using system generalized methods of moments (GMM) whereas panel quantile regression (PQR) was employed as a sensitivity analysis. Our findings show that climate finance is more useful in securing food availability but fails to enhance food access, stability and utilization. Further analysis shows that other factors such as foreign direct investment and government readiness have more impact in enhancing the different dimensions of food security whilst rural population, agricultural spending, agricultural land and capacity have more adverse effects on food security. Relevant policy implications based on our analysis are discussed.

On February 14, 2023, United Nations Secretary-General Antonio Guterres spoke to a global audience, stating, "The world will witness a mass exodus of entire populations on a biblical scale." Purpose: This paper proposes a global minimum wage formula tied to local rent prices as a proactive measure to strategically incentivize populations to migrate away from coastal areas threatened by climate change. Methodology: The author employs a theoretical approach, utilizing economic principles and financial literacy practices to develop a scaffolded, multi-year plan for implementing a global minimum wage formula. As this is a theoretical paper, there are no experiments or empirical results to evaluate. Results: The proposed global minimum wage formula, based on a 'Recent and Relevant Rent Price Index' (3RPI), is designed to anchor wages to a rent-price index, allowing laborers to afford housing on 30% of their wages. This formula is expected to incentivize migration inland, spur entrepreneurism, and increase local tax bases. Theoretical contribution: This paper contributes to climate change adaptation by proposing an economic solution to manage the anticipated mass migration due to rising sea levels and coastal erosion. It highlights the potential of market-driven measures to mitigate the economic shocks associated with climate change-induced migration. Practical implications: Implementing the proposed global minimum wage formula could help governments proactively manage climate change-induced migration's economic and social impacts. It may also contribute to funding the annual $2.4 trillion gap for addressing climate change, as described by the United Nations, by temporarily increasing discretionary funds and tax bases. Sustainable Development Goals (SDGs): SDG 10: Reduced Inequalities; SDG 13: Climate Action; SDG 11: Sustainable Cities and Communities; SDG 1: No Poverty

IntroductionThis research investigates into the complex dynamics of climate finance in Somalia, a vulnerable region facing the dire consequences of climate change. The study aims to assess how financial inputs for climate-related projects align with the actual needs and identify critical factors that influence funding effectiveness.MethodsA dual-methodological approach was employed, integrating both multiple regression analysis and Support Vector Machine (SVM) techniques. This mixed-method analysis facilitates a robust examination of climate finance data to dissect the relationships and impacts of various determinants on funding effectiveness.ResultsThe results indicate that adaptation finance, robust governance, and the scale of financial interventions significantly enhance the effectiveness of climate finance flows. However, mitigation finance and aspects related to gender equality displayed less significant impacts. Notably, the study identifies a pervasive underfinancing of climate projects in Somalia, illustrating a significant gap between the needed and actual funds disbursed.DiscussionThe findings underscore the need for enhanced governance frameworks and targeted large-scale financial interventions to optimize the allocation and impact of climate finance in vulnerable regions like Somalia. By quantifying the influence of adaptation finance and governance, this study contributes new insights to the literature on climate finance effectiveness and suggests practical strategies for policymakers and practitioners to improve climate resilience initiatives.