Monitoring Climate Finance and ODA
"Low-carbon investment in developing countries consistent with a +2º Celsius climate stabilization target could cost $139–175 billion a year by 2030. In addition, some $75–100 billion could be required annually over the next 40 years to support adaptation to the inevitable impacts of climate change on developing countries. The resources that have been committed so far to address mitigation and adaptation in these countries cover just 5 percent of the needs. Combating climate change will require tremendous efforts and ingenuity to mobilize sufficient resources without delay. It is important that efforts in mobilizing climate finance not erode current development assistance. In the Copenhagen Accord, developed countries committed themselves to mobilizing “new and additional resources” for climate investments approaching $30 billion for 2010– 12 and $100 billion a year by 2020.
The types and sources of financial flows are extremely broad and include both new instruments to address climate change as well as shifts in core development and investment finance toward low-carbon and climate-resilient solutions. In this complex landscape, keeping track of financial support for adaptation and mitigation will be a challenge. This is particularly the case in the context of measurable, reportable, and verifiable support to climate action in developing countries.
As a background for this discussion, it is important to bear in mind the evolution of the ODA concept. The original concept was developed within the context of increasing income and productive assets. This context has changed over time to include other development concerns such as environmental sustainability. When recording ODA flows that address climate change mitigation or adaptation, the challenge is to assess the incremental value of the contribution concerned. Ways should be found to:
- Channel funds to meet these incremental needs (driven by efficiency, effectiveness, fairness, and equity concerns)
- Report on financing allocated to meet these incremental needs."