Climate and Sustainable Finance

How can we ensure that financial commitments lead to transformative, measurable outcomes? This question comes into focus as the global community charts a path toward the New Collective Quantified Goal for climate finance beyond 2025. Our CFAS policy brief identifies these gaps and explores ways to improve impact measurement, including recommendations for COP29 to incorporate robust, transparent methodologies into the NCQG.

The path towards a fair and effective New Collective Quantified Goal (NCQG) for climate finance has been fraught with intense global debate: Who should contribute, and how should contributions be assessed, particularly government funding? These questions have brought to the fore principles of equity and the notion of ‘common but differentiated responsibilities and respective capabilities’ – core tenets of climate justice. With the stakes high, the NCQG’s structure will shape international climate finance and our collective response to the escalating climate crisis.l

The debate on Loss and Damage in the context of the UNFCCC has a long and fractious history. As much of the Loss and Damage institutional framework is still in its early stages, there is room to develop synergies, connections, and functionality. Our policy brief ahead of COP29 looks into this potential. To spur the conversation on L&D, we address key points such as the L&D subgoal of the NCQG, a permanent agenda item, the WIM review, and progress on the FRLD.

With the establishment of the Fund for responding to Loss and Damage, loss and damage finance has been firmly institutionalised under the United Nations Framework Convention on Climate Change. However, little knowledge exists on the financing gap that the Fund would ideally close. In our report, we discuss methodological challenges and propose solutions to change that.

This factsheet explores the role of aviation in climate action, highlighting both the gaps and opportunities in how flights are taxed and regulated. By examining current policies and proposing targeted reforms it reveals how strategic changes could advance environmental accountability, fund sustainable fuels, and foster climate equity. Discover how these solutions could propel Germany and the EU toward more sustainable skies.

Discover how Germany’s ultra-wealthy pay far less in taxes than middle-class families and how this imbalance fuels carbon emissions and environmental harm. Our latest factsheet uncovers billionaires’ tax avoidance strategies, the environmental toll of their wealth accumulation, and an international proposal for a billionaires tax to advance social and climate justice. Dive in to learn what’s at stake and how fairer taxation can drive sustainable change.

The New Collective Quantified Goal on climate finance will be defined at COP29 in late 2024. It will shape the future of climate finance and guide Parties' efforts to finance climate action for years to come. The Goal therefore needs to highlight the importance of adaptation finance and contain strong provisions to ensure that adaptation finance flows in line with the evolving needs and priorities of developing countries, as well as the Global Goal on Adaptation of the Paris Agreement. Our policy brief details how this can be achieved.

As countries transition to low-carbon and climate-resilient economies, finance flows will need to shift to support these transitions, in line with the third long-term goal of the Paris Agreement, Article 2.1c. South Africa was the first country to sign a Just Energy Transition Partnership (JETP). In this context, South Africa developed a Just Energy Transition Investment Plan (JET IP) laying out a series of policies and regulations the country would implement to achieve its just energy transition. This paper offers an analysis of these policies and regulations, using existing Article 2.1c approaches.

India’s transition towards a low-carbon economy is central to achieving global climate goals. How can international cooperation support Indian efforts? In our policy brief, we argue that “True Partnerships” between India and the Global North should put the poeple, equity, and climate action at the core of cooperation, to achieve a transition that is green and just.

In March 2023 the IDB Group published its “Paris Alignment Implementation Approach: Principles, Methodology, and Technical Guidance” (PAIA). The document is based on the joint MDB framework and lays out how the IDB plans to adapt the framework to its own institutional procedures. This blog post provides an overview on what are promising, concerning and unclear elements in the IDB Group’s general Paris alignment methodology.