Search Climate Insights Directory

In 2021, global electricity demand grew by 5.4%, the fastest rate since 2010. While solar and wind generation continued to rise, coal generation reached an all-time high, leading to a 7% increase in power sector CO2 emissions. This resulted in the first increase in global electricity carbon intensity since 2011, moving the sector further away from the IEA's 1.5 degree pathway.

The report synthesizes evidence from the GCF-1 period, finding that while the institution has established its functional architecture, it continues to struggle with slow accreditation processes, limited direct access for national entities, and poor quality in results measurement and reporting. It highlights a lack of a formal accreditation strategy and persistent policy gaps at the Board level. While the portfolio is growing, most projects are still in early implementation stages, and the impact of the COVID-19 pandemic has compounded existing delays. The report identifies the need for a more strategic approach to paradigm shifts and the mobilization of private sector finance, noting that current results reporting lacks credibility due to inconsistent methodologies.

The report examines the rise of green taxonomies as classification systems to identify sustainable economic activities and reduce greenwashing. It identifies three primary development approaches: whitelist-based, technical screening criteria (TSC) based, and principle-based. A central focus is the alignment between the EU and China taxonomies via the International Platform on Sustainable Finance (IPSF) and the Common Ground Taxonomy (CGT), which aims to facilitate cross-border green capital flows. The document details how these taxonomies are implemented by regulators for mandatory disclosure and by financial intermediaries for product development and risk management.

The Pacific Islands Renewable Energy Investment Program, funded with USD 17 million in GCF grants, aims to transition seven Pacific SIDS—the Cook Islands, Marshall Islands, Micronesia, Nauru, Papua New Guinea, Samoa, and Tonga—away from diesel power. Component 1 focused on installing Battery Energy Storage Systems (BESS) in the Cook Islands to improve grid stability and load shifting, while Component 2 provided technical assistance for sector reform and capacity building across all target countries. The evaluation finds that while BESS installation has progressed, the lack of timely procurement for solar independent power producers (IPPs) has left some storage capacity idle. Component 2's effectiveness was significantly hampered by COVID-19 travel restrictions, though progress was made in the Marshall Islands and Micronesia. The report highlights the need to synchronize BESS and solar procurement and suggests a 'portfolio approach' to regional utility reform to diversify risk.

The report compiles academic articles, toolkits, and policy documents focusing on the role of women in artisanal and small-scale mining (ASM). It highlights systemic marginalization, including restricted access to high-paying roles, finance, and land, while noting that ASM often provides a critical source of income and agency for women. The bibliography emphasizes the need for gender-responsive policies and formalization strategies to prevent further marginalization of women.

The U.S. Government Global Water Strategy 2022-2027 establishes a whole-of-government approach to achieve a water-secure world. It prioritizes four strategic objectives: strengthening sector governance and financing, increasing equitable access to climate-resilient water and sanitation services, improving the conservation of freshwater resources, and reducing water-related conflict. The strategy emphasizes local leadership, the needs of marginalized populations, and the integration of climate resilience. Implementation is coordinated through the Interagency Water Working Group (IWWG) and focuses on High-Priority Countries (HPCs) identified by a data-driven needs and opportunity index. Specific agency plans from USAID, the Department of State, CDC, and others detail how they will leverage technical expertise, diplomatic engagement, and financial tools to meet these goals.

The report examines the systemic risks posed by the 'new planetary reality' of the Anthropocene, where climate instability and biosphere depletion create non-linear financial risks. It argues that current ESG metrics and macroeconomic indicators (like GDP) are insufficient because they fail to account for planetary boundaries and natural capital. The authors highlight the disproportionate responsibility of high-income countries for ecological breakdown and the role of 'keystone actors'—including transnational corporations and 'Big Three' asset managers (BlackRock, Vanguard, State Street)—in driving or mitigating these risks. The document proposes a shift toward a precautionary approach to financial regulation, the adoption of impact accounting, and the use of social norm shifts to accelerate a just transition.

The case study emphasizes that because mining is a significant water user and potential contaminant source, governance must occur at the watershed scale rather than the individual user level. It highlights that climate change increases risks to water quality and availability through rainfall variability and extreme weather. The text notes that while legal frameworks are essential, challenges remain regarding the ownership of water as a common resource, mentioning an emerging trend of granting legal rights to nature in countries such as Bolivia, Ecuador, Colombia, India, and New Zealand. Specifically, Mongolia and the Antofagasta region of Chile are identified as jurisdictions that have implemented watershed-level management frameworks to balance mining's economic importance with water demands in arid environments.

The evaluation assesses the performance of the 10 MW Sumber Solar Power Plant (SPP) in Mongolia, funded by a USD 8.65 million GCF loan and USD 8.9 million in equity. The project is rated as "Satisfactory," having successfully reduced GHG emissions by 29,722 tCO2eq and produced 34,124 MWh of electricity by the end of 2020. While the program closed early in December 2020 due to loan refinancing by the project developer, it demonstrated the bankability of solar projects in Mongolia and aligned with national targets to reach 30% renewable energy by 2030. However, the evaluation noted shortcomings in gender-disaggregated data and the implementation of the Gender Action Plan.

The document argues that the lack of transparency regarding beneficial owners—the individuals exercising ultimate effective control over fishing vessels and facilities—is a primary enabler of corruption and IUU fishing. It details how 'flags of convenience' (FoCs), shell companies, and opaque joint ventures allow bad actors to evade sanctions, launder money, and engage in human rights abuses. The author highlights specific cases, such as the 'Fishrot' scandal in Namibia and the use of Chinese processing facilities to hide North Korean labor. To address these issues, the briefing recommends that governments implement public beneficial ownership registries, verify disclosed data, and that major market states like the US, EU, and Japan make beneficial ownership transparency a condition for seafood import access.

The document outlines a framework for integrating gender equality into climate finance projects, emphasizing the need for local expertise, robust baseline data, and continuity between project design and implementation. It provides specific recommendations for project teams and climate funds, supported by case studies from various sectors and regions.

The document examines how tax treaties can lead to significant revenue losses for resource-rich developing countries through indirect asset transfers, subcontractor tax avoidance, and the erosion of the tax base via technical service fees. It analyzes 86 sample treaties and provides specific drafting recommendations, such as adopting standalone extractive industry articles, expanding the definition of 'immovable property' in domestic law, and implementing lower time thresholds for permanent establishments to ensure mining revenues are captured effectively.

The document examines the trade-offs between universal and targeted Basic Income Guarantees (BIG) for South Africans aged 18-59. It argues that targeting creates administrative burdens, high exclusion errors, and social stigma, whereas a Universal Basic Income Guarantee (UBIG) ensures broader coverage and social cohesion. The brief contends that a UBIG is fiscally feasible through progressive taxation, such as a Social Security Tax, and provides superior poverty reduction by allowing households to pool resources. It specifically critiques the use of employment status or household-level targeting, noting that the latter can exacerbate gender inequalities. The brief recommends a universal BIG as the most efficient path to economic recovery and social stability.

The manual outlines strategies for planning, designing, and evaluating linear infrastructure safeguards in Asia, emphasizing the use of spatial analysis, economic valuation, and engineering best practices to maintain ecological connectivity.

The study assesses green hydrogen in Mongolia, finding it most viable for heavy-duty mining transport in the South Gobi region, where it could mitigate 1.2 Mt CO2e annually. While production costs are competitive at 3.3-4.7 USD/kg, water scarcity in the south poses a limit. Public transport in Ulaanbaatar is a possible but limited-scale application, while decentralised heating is currently not cost-competitive compared to LPG.

The Independent Evaluation Unit (IEU) found that the SAP Pilot Scheme has not significantly accelerated project approvals or simplified requirements for proponents. While the SAP has increased access for African States and Least Developed Countries (LDCs), it has failed to attract Small Island Developing States (SIDS) or the private sector. The median time from concept note submission to Board approval for SAP projects is 365 days, only 8% shorter than comparable regular projects. The IEU recommends developing a formal SAP strategy, simplifying review criteria, and delegating approval authority to the Executive Director.

The GCF Secretariat report for the period ending 31 July 2021 indicates that programming and implementation targets are largely on track, with 76% of the portfolio now under implementation. Key achievements include the approval of USD 1.2 billion in funding at the B.28 meeting and the adoption of the Integrated Results Management Framework (IRMF) at B.29. The Secretariat is working to diversify its private sector portfolio and improve direct access for entities. However, the Simplified Approval Process (SAP) targets are likely to remain unmet due to slow proposal development. The report also highlights the impact of COVID-19 on project expenditure and the ongoing efforts to finalize bilateral privileges and immunities agreements.

As of 31 July 2021, the GCF pipeline includes 89 funding proposals requesting USD 6.4 billion and 350 concept notes requesting USD 15.9 billion. The report details the distribution of these requests by sector, region, and theme, while also tracking the progress of the Simplified Approval Process (SAP) pilot, specific requests for proposals (RFPs) such as REDD-plus and MSME, and the status of 65 active Project Preparation Facility applications.

The report examines how the 'Fourth Industrial Revolution'—including AI, automation, and IoT—is transforming large-scale mining. While these technologies improve safety and efficiency, they risk displacing low- and semi-skilled workers and reducing local procurement. The authors propose a 'New Deal' comprising updated education and skills training, innovative social impact investing, revised taxation, and the use of technology itself to benefit local communities and artisanal mining.

The GCF's Independent Evaluation Unit (IEU) assessed four pilot RFP programmes: Enhanced Direct Access (EDA), Micro-, Small and Medium-Sized Enterprises (MSME), Mobilizing Funds at Scale (MFS), and REDD+ Results-based Payments (REDD+). The assessment concludes that while the RFPs are relevant to the GCF mandate and country needs, they have not been used effectively as a modality. Key failures include a lack of incentives for proponents, an inability to attract new accredited entities, and a project cycle that remains as complex and lengthy as the regular Proposal Appraisal Process (PAP). The REDD+ RFP was the most successful due to its tailored process and specialized expertise. The IEU recommends establishing the RFP as a formal institutional modality with standardized processes, transparent topic selection based on portfolio gap analysis, and incentives such as simplified accreditation.