Search Climate Insights Directory

The document examines the potential for BRICS nations to integrate economically and form a common currency to reduce reliance on the US dollar. It applies Optimum Currency Area (OCA) theory to the bloc, noting that while the New Development Bank (NDB) and Contingent Reserve Arrangement (CRA) demonstrate a commitment to cooperation, significant economic heterogeneity in GDP growth, inflation, and fiscal policy remains a major hurdle. The analysis suggests that while traditional OCA criteria are not fully met, the 'new' OCA theory—which emphasises political commitment and endogenous policy harmonisation—provides a more plausible path toward a multipolar financial order.

The Thailand Country Programme (TCP) 2024 outlines a framework to align national climate strategies with GCF funding for the 2024-2027 programming cycle. Thailand aims for carbon neutrality by 2050 and net-zero emissions by 2065, with the energy sector identified as the largest GHG contributor. The programme identifies five priority areas: mitigation strategies and technologies, knowledge enhancement in agriculture and waste, advanced adaptive technologies, strengthening climate financing mechanisms, and awareness raising. To meet its Nationally Determined Contributions (NDC), Thailand estimates a need for THB 5,000 billion for unconditional targets and THB 7,000 billion for conditional targets. The TCP also details a readiness plan to strengthen National Designated Authority (NDA) capacity and accredit Direct Access Entities (DAEs) such as Kasikorn Bank and the Environment Fund.

The UK became the first G7 country to phase out coal power on September 30, 2024, with the closure of the Ratcliffe-on-Soar plant. However, the author contends that this domestic achievement is contradicted by the actions of UK financial institutions, which provided US$6.5 billion to the global coal industry between 2021 and 2023. The document calls for stronger financial regulations to end coal expansion funding and redirect capital toward renewable energy and early decommissioning.

The document highlights Indonesia's climate crisis, noting record temperatures in Larantuka and the country's position as a top ten global greenhouse gas emitter due to coal dependency. It criticizes the government's continued construction of coal-fired power plants (PLTU), the use of biomass co-firing that threatens forests and indigenous peoples, and the environmental damage caused by nickel mining for electric vehicle batteries. The guide advocates for community-based renewable energy and provides a framework for individual and collective action, including reducing transport emissions, mindful consumption, and demanding political accountability.

The report identifies a strategic window for the EU and UK to reset their climate and energy relationship following recent elections. It argues that the current Trade and Cooperation Agreement (TCA) is too limited and suggests a comprehensive new agreement covering industrial decarbonisation, methane, carbon capture, hydrogen, and nuclear energy. The document advocates for an 'options-based strategy' that includes clean firm power to complement renewables, and recommends aligning regulatory frameworks—such as the Emissions Trading Systems (ETS) and carbon removal certifications—to facilitate cross-border trade and infrastructure sharing.

The document discusses the opportunities and challenges for Moldova as it aligns with the European Green Deal (EGD). It emphasizes that success depends on the leadership of local actors, the integration of green principles into agriculture, energy, and infrastructure, and the delivery of tangible improvements in daily life to secure public support.

The paper argues that biomass energy projects, framed as climate change mitigation, serve as a mechanism for 'energy grabbing' and the reconcentration of land control by Perhutani. Through case studies in Sukabumi, Grobogan, and Bojonegoro, it demonstrates how the classification of land as 'unproductive' or 'critical' is used to dispossess local farmers and transform them into low-paid laborers. The study finds that the promotion of gamal and kaliandra as 'flex trees' restricts community access to essential resources like firewood and fodder, while triggering localized resistance and criminalization of farmers.

The study finds that WACC in Africa's power sector remains high compared to global benchmarks, driven primarily by a cost of equity that is on average double the cost of debt. While WACC is projected to decrease from 18% to 13% by 2070, significant regional disparities persist, with Eastern Africa facing the highest costs and Northern Africa the lowest. The authors argue that using uniform cost of capital assumptions leads to underestimation bias in energy costs and misguides policy, particularly for capital-intensive clean energy projects.

The Changing Markets Foundation argues that the 2022 EU Strategy for Sustainable and Circular Textiles lacked sufficient ambition and calls for binding material footprint targets, a ban on the destruction of unsold goods, and mandatory disclosure of production volumes. It advocates for the decarbonisation of supply chains through financial support for Global South suppliers and the implementation of a textile-specific Unfair Trading Practices (UTP) directive to protect workers' rights and living wages. Additionally, the brief recommends strengthening the Substantiating Green Claims directive to require ex-ante verification of environmental claims and the inclusion of social impact data in Digital Product Passports.

The guide establishes a standardized framework for tracking climate mitigation, adaptation, and biodiversity finance. It provides detailed lists of eligible activities for mitigation, a three-step validation process for adaptation, and specific criteria for biodiversity finance. The document emphasizes the use of ex-ante GHG emission reduction assessments and offers methodologies for quantifying finance through incremental or proportional approaches to ensure transparency and avoid double-counting.

Global climate finance more than doubled between 2018 and 2022, reaching USD 1.46 trillion in 2022, yet remains far below the USD 7.4 trillion annual average needed by 2030 for a 1.5°C scenario. Mitigation finance dominates the landscape, driven by renewable energy and electric vehicles in advanced economies and China, while adaptation finance, though growing, remains severely underfunded, particularly for Least Developed Countries (LDCs) and Small Island Developing States (SIDS). The report highlights a critical imbalance, noting that fossil fuel subsidies reached USD 1.4 trillion in 2022, nearly equaling total climate finance. It recommends reforming the global financial architecture through increased concessional finance, risk mitigation, and the redirection of fossil fuel expenditures to close the investment gap.

In 2023, IDFC members committed $199 billion in green finance, a 31% decrease from 2022, largely due to currency depreciation in East Asia and the Pacific and the adoption of more conservative tracking methodologies. Climate finance dominated at 98% of total green finance, with mitigation accounting for 89% of that amount. Adaptation finance fell significantly to $10.5 billion, while biodiversity finance reached its lowest level since 2020 at $8.2 billion. The report emphasizes the role of public development banks (PDBs) in providing transformative finance and calls for the New Collective Quantified Goal on Climate Finance (NCQG) to integrate 'transformational criteria' to better catalyze private investment.

The report finds that while climate finance in Africa grew by 48% to USD 43.7 billion in 2021/22, it remains severely insufficient, meeting only 23% of the annual needs required for NDC implementation. Public finance dominates the landscape, providing 82% of total flows, while private finance is heavily concentrated in energy systems and a small number of countries. The document highlights a critical 'trilemma' where climate-vulnerable countries are also debt-distressed and conflict-affected, further hindering their ability to attract investment. Key recommendations include scaling the use of guarantees, improving domestic capital market regulations, and enhancing the transparency and equity of voluntary carbon markets.

The methodology for the Landscape of Climate Finance in Africa 2024 describes the framework used to identify and categorize climate finance flows. It employs a taxonomy to distinguish between mitigation, adaptation, and dual-benefits finance across sectors such as energy, transport, and agriculture. The approach relies on a mix of public and proprietary data from sources like the OECD, BNEF, and the World Bank, while acknowledging significant gaps in domestic public expenditure tracking and private sector reporting. The document also details the classification of African countries by subregion and income status.

The report finds that international concessional climate finance grew by 50% from 2019 to reach USD 81 billion in 2022, though it remains small compared to fossil fuel subsidies. Sub-Saharan Africa is the primary recipient of these flows. The analysis highlights a gap in adaptation finance and a lack of standardized impact metrics. Domestic concessional finance is heavily concentrated in high-income economies, particularly Western Europe, and focuses primarily on mitigation. The report recommends redirecting fossil fuel subsidies, targeting fragile and conflict-affected states, and streamlining project approval processes to enhance efficiency.

Climate finance in Africa grew by 48% between 2019/20 and 2021/22, reaching USD 43.7 billion, yet this remains only 23% of the annual funding required to meet 2030 NDC goals. Public finance dominates the landscape, providing 82% of total flows, while private finance is heavily concentrated in energy systems and a small number of countries. The report highlights a critical 'trilemma' where climate-vulnerable countries are often simultaneously debt-distressed and conflict-affected, further hindering their access to grants and affordable capital. Key recommendations include reforming domestic fiscal policies to remove fossil fuel subsidies, scaling the use of guarantees to de-risk private investment, and leveraging domestic institutional assets, such as pension funds, to reduce reliance on international debt.

The briefing examines the expansion of LNG infrastructure in Latin America and the Caribbean, highlighting significant planned investments in Mexico, Argentina, and Brazil. It argues that these projects risk becoming stranded assets and conflict with global climate goals to limit warming to 1.5°C, suggesting that the region should instead prioritize its abundant renewable energy resources.

The Institute for Economic Justice proposes a universal basic income guarantee (UBIG) as a foundational safety net for South Africa's transition from fossil fuels to clean energy. The document asserts that while targeted support for displaced workers is necessary, a UBIG is essential to cover those indirectly affected, such as informal workers and carers, and to prevent people from falling through gaps in social protection. It highlights international evidence from countries like Bangladesh, Brazil, and Ethiopia to demonstrate how cash transfers mitigate climate-induced crises and reduce negative coping strategies. Furthermore, the text argues that a UBIG facilitates environmental adaptation by providing the financial stability needed for reskilling and sustainable consumption, while promoting a more equitable distribution of climate risks between the Global North and Global South.

The document examines the ecological footprint of e-commerce, highlighting carbon emissions from logistics, packaging waste, and the impact of high product return rates. It argues that sustainability requires a coordinated effort: governments must implement green regulations and urban planning; the private sector should optimize supply chains and adopt renewable energy; and consumers must shift away from impulsive, high-frequency purchasing. The author emphasizes the need for better data collection and international cooperation, particularly to support developing nations in building sustainable digital infrastructures.

The document analyzes the environmental footprint of e-commerce, highlighting issues such as carbon emissions from logistics, packaging waste, and high return rates. It proposes a multi-stakeholder action agenda involving government regulation, private sector supply chain optimization, consumer behavioral shifts, and international cooperation to foster a sustainable digital economy.