In April 2011, the G20 Finance Ministers tasked the World Bank working with several institutions to conduct an analysis on mobilizing sources of climate change financing.
Their joint work considers the complementary role of public and private sources in mobilizing and leveraging climate finance flows. It draws on and aims to update and extend the work carried out in 2010 by the U.N. Secretary General’s High Level Advisory Group on Climate Change Financing (AGF), in several directions:
- More detailed analysis of cost, incidence, and impact of various carbon pricing schemes
- Further evaluation of the potential for charges on international maritime and aviation fuel use
- Updated estimates of fossil-fuel support in developed countries
- A review of options for strengthening the effectiveness of carbon markets
- Updated estimates of the scope for leveraging private climate finance using public investment and policy initiatives
- Innovative avenues to make the most of the leveraging capabilities of multilateral development banks
Ten institutions collaborated to respond to the G20 request. Work was coordinated by the World Bank Group, in close partnership with the International Monetary Fund (IMF), the Organisation of Economic Co-operation and Development (OECD) and the Regional Development Banks (RDBs) - African Development Bank, Asian Development Bank, European Investment Bank, and Inter-American Development Bank. The IMF led the work stream on sources of public finance. The OECD contributed the analysis of fossil fuel support, monitoring and tracking of climate finance and other inputs. The International Finance Corporation (IFC) and European Bank of Reconstruction and Development (EBRD) led the work stream on private leverage. The World Bank worked on how to leverage multilateral flows and carbon offset markets, with inputs from other RDBs. Useful comments were provided by the International Civil Aviation Organization (ICAO) and the International Maritime Organization (IMO).