Scaling-up Climate Finance in the post-Covid Context

The briefing outlines a strategy to redirect global private savings toward 1.5°C compatible infrastructure, particularly in developing countries which represent 70% of investment needs. It proposes a coordinated approach to de-risk investments through public guarantees, the recognition of climate remediation assets as collateral by Central Banks, and the use of AAA multi-sovereign guarantees to encourage cross-border capital flows. The document emphasizes the need to reduce debt burdens in developing countries and integrate recovery policies with climate objectives and Sustainable Development Goals (SDGs) ahead of the 2023 Global Stocktake.

• Closing the global infrastructure gap in sectors such as energy, transportation, and water with 1.5°C compatible options can support global recovery, poverty alleviation, and the Sustainable Development Goals. This requires redirecting private savings away from liquid products and real estate toward long-term investments, specifically targeting developing countries, which account for 70% of investment needs.
• To encourage project developers to commit capital to low-carbon investments despite high up-front costs, the document suggests increasing the use of public guarantees combined with subsidies, grants, feed-in tariffs, and standards, while reducing administrative and institutional barriers to project proposals.
• Institutional investors can be attracted to climate remediation assets through transparent project selection methods to prevent 'greenwashing suspicion' and the use of aggregation, bundling, and securitisation to make small projects viable for large investors.
• Banks are currently limited by Basel III rules and high sovereign bond interest rate spreads; this could be mitigated if Central Banks recognize climate remediation asset classes as collateral for climate-targeted debts, which would also facilitate the issuance of bonds in local currencies.
• Immediate actions to trigger a learning process before the 2023 Global Stocktake include using AAA multi-sovereign guarantees from developed countries to de-risk investments, reducing debt burdens in developing countries via debt cancellation, swaps, and Special Drawing Rights (SDRs), and reducing the fragmentation of climate and development finance.

APA

Climate Strategies (n.d.). Scaling-up Climate Finance in the post-Covid Context. https://climatestrategies.org/wp-content/uploads/2021/10/2pager-circle-of-trust_designed.pdf

Chicago

Climate Strategies. Scaling-up Climate Finance in the post-Covid Context. n.d. https://climatestrategies.org/wp-content/uploads/2021/10/2pager-circle-of-trust_designed.pdf.

Wikipedia

{{cite report |author=Climate Strategies |title=Scaling-up Climate Finance in the post-Covid Context |url=https://climatestrategies.org/wp-content/uploads/2021/10/2pager-circle-of-trust_designed.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatestrategiesndscalingup, author = {{Climate Strategies}}, title = {{Scaling-up Climate Finance in the post-Covid Context}}, institution = {Climate Strategies}, url = {https://climatestrategies.org/wp-content/uploads/2021/10/2pager-circle-of-trust_designed.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }