Principles of international climate finance

The document highlights that national budgets in developing and emerging economies are insufficient for deep emission reductions due to high debt distress. It asserts that developed countries must lead by providing finance, technology, and knowledge transfer under the principle of common but differentiated responsibilities (CBDR). The paper introduces nine exploratory principles to scale ambition and facilitate just transitions, recommending a bottom-up approach to articulating finance needs rooted in national priorities and the development of shared goals for international climate finance.

• National financial frameworks and public budgets are insufficient to meet the scale of finance required for the energy transition, particularly in developing and emerging economies where high-debt distress restricts domestic resources and access to global debt markets.
• Based on the UNFCCC principle of common but differentiated responsibilities (CBDR), developed nations are responsible for leading global action and providing support to developing countries through finance, policy support, and the transfer of technology and knowledge.
• To better inform international climate finance needs, the paper suggests several actions: articulating high ambition pathways, rooting climate objectives in national priorities to ensure domestic buy-in, adopting a bottom-up approach to finance needs, developing shared criteria for finance at the bilateral or UNFCCC level, and increasing finance pledges from developed countries to reflect equity and CBDR.

APA

NewClimate Institute (2023). Principles of international climate finance. http://www.newclimate.org/resources/publications/the-role-of-international-climate-finance-for-bridging-the-low-carbon

Chicago

NewClimate Institute. Principles of international climate finance. 2023. http://www.newclimate.org/resources/publications/the-role-of-international-climate-finance-for-bridging-the-low-carbon.

Wikipedia

{{cite report |author=NewClimate Institute |title=Principles of international climate finance |date=29 June 2023 |url=http://www.newclimate.org/resources/publications/the-role-of-international-climate-finance-for-bridging-the-low-carbon |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{newclimateinstitute2023principles, author = {{NewClimate Institute}}, title = {{Principles of international climate finance}}, institution = {NewClimate Institute}, year = {2023}, month = jun, url = {http://www.newclimate.org/resources/publications/the-role-of-international-climate-finance-for-bridging-the-low-carbon}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }