The commitments made under the 2015 Paris Agreement to fight climate change translate into substantive financial needs, for both developed and developing countries. Financing needs for both mitigation and adaptation efforts are enormous. The fight against climate change thus raises questions of equity. Emissions by developed countries are the main cause of today’s climate change and developed countries are committed to taking the lead in combating climate change. However, mitigation will neither be effective nor efficient if developing countries do not attempt to bring their emissions under control.
Flows of climate finance, both fiscal transfers and market transactions, from developed to developing countries represent the principal way to reconcile equity with effectiveness and efficiency in dealing with the climate problem. Financial flows can help developing countries reduce their greenhouse gas emissions and adapt to the effects of climate change. In addition, there will be financing needs related to developing and diffusing new technologies. Mitigation, adaptation, and the deployment of technologies must occur in a way that allows developing countries to continue their growth and reduce poverty. Therefore, additional financial flows to developing countries are crucial.
To address those issues, new sources of finance will need to be tapped. Governments will have to step in, but it will be equally important to develop new innovative funding mechanisms and to leverage private finance. The private sector will have a key role in financing mitigation through carbon markets and related instruments. Official flows and other international funding will be important complements to build capacity, correct market imperfections, and target areas overlooked by the market. Private finance will also be important for adaptation, because private agents—households and firms— will carry much of the adaptation burden. Good adaptation is very closely linked to good development, and those most in need of adaptation assistance are the poor and disadvantaged in the developing world. This means public finance will have a key role.
- To promote discussion among government officials and experts, and to share policy insights and country experiences related to financing climate change mitigation and adaptation.
- To provide an overview of the needs as well as possible funding sources to fight climate change, with a focus on local finance, based on the idea of hometown investment trust funds, developed by ADBI Dean Naoyuki Yoshino.
About 18 government officials from 10 developing countries in Asia and the Pacific (Indonesia, Malaysia, Thailand, Philippines, Viet Nam, Sri Lanka, Bangladesh, Pakistan, Fiji, and Papua New Guinea) and experts in climate change financing.
Actively join discussions and share views and experiences.
- Better knowledge and enhanced capacity of developing Asia and the Pacific countries in understanding various aspects of climate change financing for mitigation and adaption.
- Enhanced dialogue among government officials and experts on key issues related to opportunities, challenges, and development of climate change financing in developing Asia and the Pacific.
- Presentation materials for upload on ADBI website.
Time of event
09:00 - 18:00