A series of new studies released today explore how international climate finance can accelerate climate action across the globe. Published as part of the SNAPFI project, five national or regional studies (South Africa, India, Indonesia, Brazil, EU) and an international study analyse specific aspects of national and international climate policies and their links to climate finance. The project is managed by the German Institute for Economic Research while partners in each country lead the respective research. It is the second iteration of research reports of the four-year project.

In detail, the reports focus on:

  • International study: This year’s international study analyses how international partners can contribute to climate policy processes in emerging markets, thereby facilitating the channelling of financial flows to low-GHG-emission and climate-resilient development, as described in Article 2.1.c of the Paris Agreement.

  • South Africa: SNAPFI’s research team at the University of Cape Town explores how financial and broader policies in South Africa can increase the scale and influence the direction of finance flows for more effective climate action. The study identifies a promising process of realignment of institutions around strategies, to send clearer signals on where finance is needed for both mitigation and adaptation.

  • Brazil: This year’s study from the Center for Sustainability Studies of Fundação Getulio Vargas identifies the main barriers to and drivers of capital market investment in low-carbon infrastructure in Brazil and explores possible measures that could help narrowing the infrastructure gap in the country. 

  • India: This year’s study by the Energy and Resources Institute in cooperation with the Indian Institute of Technology Delhi assesses the barriers for private sector financing of climate resilient infrastructure at the national level. By recognising the global best practices for addressing these challenges they develop priority measures to enhance climate resilience of private sector infrastructure investment.

  • Indonesia: Researchers from the Climate Change Center of Bandung Institute of Technology investigate in their study the current climate-energy governance model in Indonesia and the interactions between the prominent stakeholders that are involved in the Indonesian renewable energy sector.

  • EU: Reflecting on the example of industry decarbonisation, the German Institute of Economic Research (DIW) investigates how international public climate finance (ICF) can promote global cooperation in the climate commons. DIW finds that reciprocity of contributions, along with the linking of ICF to political levels and the use of innovative ICF instruments are central. Focusing on the steel sector, the study underlines the need for common sustainability standards and opens the door for novel ICF instruments such as carbon contracts for difference.