22 Sep 2016
Alexandra Soezer, Climate Change Technical Advisor
Planting trees is one way to counter the effects of climate change. Photo: Aaron Nsavyimana/UNDP Burundi
It is estimated that US$16 trillion is required to meet the targets of the Paris Agreement, the so-called Nationally Determined Contributions (NDCs). This is money that will help to put countries on a low carbon path. Where this money will come from, however, has long been a source of debate. Yet, it seems that we may finally be putting in place the instruments we need to finance our low carbon future.
A single mechanism for investing in low carbon development is ineffective, as it does not reflect contextual realities or the priorities of varying stakholders, such as the private sector. What is needed are parallel and complementary mechanisms that support countries at different levels of development.
The Clean Development Mechanism (CDM) has boosted private investment in mitigation projects in developing countries. With more than 8,000 projects registered, the CDM has leveraged almost US$ 200 billion of investments in developing countries. This mechanism has, therefore, been a key driver in the effort to reduce emissions and tackle climate change in developing countries.
But not all regions and countries of the world were able to benefit equally from CDM. Few Least Developed Countries, notably those in sub-Saharan Africa, participated in the CDM, leaving …