According to the United Nations Framework Convention on Climate Change (UNFCCC) Standing Committee on Finance has defined climate finance as “finance that aims at reducing emissions, and enhancing sinks of greenhouse gases and aims at reducing vulnerability of, and maintaining and increasing the resilience of, human and ecological systems to negative climate change impacts.”
Lack of an effective and enabling environment for private sector that provides visibility to climate compatible development.
Government incentives alone are insufficient for larger and complex climate compatible projects.
Limited awareness of the accessibility potential and requirements of different sources of climate finance
Limited knowledge in developing countries of the different sources of climate finance, and their applicability for different investment contexts and/ or actions.
There are few visible ‘investment ready’ projects, with many opportunities requiring further development, due diligence, new financing solutions and changes in regulatory or institutional barriers.