The Intergovernmental Panel on Climate Change (IPCC) estimates $1.6 trillion is needed annually to keep global warming to the 1.5-2°C target range; only 38% of this was funded in 2019. Catalysing private finance for climate action will therefore be essential to achieving goals for limiting global warming.
This learning brief offers a clear justification for the role of development assistance organizations like the United States Agency for International Development (USAID) in catalysing private finance for climate action. It synthesizes lessons learned from a broad set of donor experiences and offers practical ‘how to’ descriptions of donor-supported activities that lead to additionality and positive climate and human impacts.
This is one of three complementary resources that includes a set of case studies that examine various models of blended finance for climate action and a guidance note that provides a framework for understanding the potential for additionality and human impacts for blended finance from USAID’s perspective.