Extensive resources must be mobilized for the world to meet the objectives of the Paris Agreement, with significant emissions reductions required immediately if temperature increases are to remain below 1.5 degrees C. An assumption of the Agreement – as well the Swedish approach – is that a significant part of financing will consist of private capital; particularly in developing countries, where resources are scarce.
Public actors have an important role to play in mobilizing capital, for example through contributing with early-stage financing for innovation and by lowering private risk to crowd in additional financing. Sweden has a broad portfolio of this type of ‘development financing’ in the climate area, with central actors including Sida, Swedfund and the Nordic Development Fund (NDF).
EBA is currently evaluating whether Swedish development financing for climate is designed to contribute substantively to extensive emissions reductions in developing countries – and within a timeframe required to meet the goals of the Paris Agreement, which demand urgent action.
Chair of the reference group: Kim Forss
Project Manager: Númi Östlund