Designing and Testing a Methodology to Estimate Private Climate Finance Mobilization from Policy and Other Causal Factors
by and -Climate finance is increasingly important with the recent entry into force of the Paris Agreement. Countries will need significant amounts of climate finance to meet their Nationally Determined Contributions, and the largest pools of finance exist in the private sector. Consequently, understanding how to attract private sector investment is paramount in transitioning to a decarbonized economy. Public and private co-finance at the project level is one such avenue, and many methodologies exist to measure this. The effects of policy, however, are less understood.
This publication proposes a methodology to provide a credible way to estimate mobilized private finance for climate finance tracking. Although we note its limitations, we conclude that this proposed methodology provides an improved way to track and estimate mobilized private climate finance. It provides a solid foundation to be expanded upon and applied in future case studies.
