Paying for the Paris Agreement: A Primer on Government Options for Financing Nationally Determined Contributions

The document outlines the urgent need for increased financial flows to meet Paris Agreement goals, noting that global mitigation investments must increase by a factor of 36 by 2030 to limit warming to 2°C. It identifies a three-stage process for financing NDCs—planning, implementation, and monitoring—and suggests that governments utilize a mix of financial, fiscal, and policy instruments to mobilize both public and private finance. The report highlights that developing countries face significant gaps, with reported financial needs reaching $4.3 trillion, far exceeding existing pledges.

• To limit global warming to 2°C, the Intergovernmental Panel on Climate Change indicates that global mitigation investments must increase by a factor of 36 by 2030.
• Developing countries have a significant financing gap; while only 60 percent reported their financial needs in NDCs, the total amount is $4.3 trillion, or approximately $430 billion annually, which is four times the $100 billion pledge.
• Governments should follow a three-stage process to finance their climate commitments: creating a financing strategy, implementing finance instruments, and monitoring success.
• Achieving climate targets requires a combination of instruments to align public finance with national goals, increase public funding for climate action, and mobilize private finance.
• Countries in the Global South face specific barriers to implementing finance initiatives, including a lack of human and financial resources and a perceived conflict between climate and development goals.

APA

World Resources Institute (n.d.). Paying for the Paris Agreement: A Primer on Government Options for Financing Nationally Determined Contributions. https://www.wri.org/research/paying-paris-agreement-primer-government-options-financing-nationally-determined

Chicago

World Resources Institute. Paying for the Paris Agreement: A Primer on Government Options for Financing Nationally Determined Contributions. n.d. https://www.wri.org/research/paying-paris-agreement-primer-government-options-financing-nationally-determined.

Wikipedia

{{cite report |author=World Resources Institute |title=Paying for the Paris Agreement: A Primer on Government Options for Financing Nationally Determined Contributions |url=https://www.wri.org/research/paying-paris-agreement-primer-government-options-financing-nationally-determined |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldresourcesinstitutendpaying, author = {{World Resources Institute}}, title = {{Paying for the Paris Agreement: A Primer on Government Options for Financing Nationally Determined Contributions}}, institution = {World Resources Institute}, url = {https://www.wri.org/research/paying-paris-agreement-primer-government-options-financing-nationally-determined}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }