Paper one in I4CE\u2019s research project on the standards, tools and metrics to support the mainstreaming of \u2018Low-Carbon Climate-Resilient\u2019 growth pathways into activites of development finance institutions. <\/em><\/p>\n Abstract<\/strong> The research project under which this paper was elaborated received financial support from Caisse des D\u00e9pots and Agence Fran\u00e7aise de D\u00e9veloppement during its first phase. The research presented in this publication was carried out by I4CE on an independent basis. CDC group and AFD are not liable under any circumstances for the content of this publication.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" Climate and development finance institutions: linking climate finance, development finance and the transition to low-carbon, climate-resilient economic models Paper one in I4CE\u2019s research project on the standards, tools and metrics to support the mainstreaming of \u2018Low-Carbon Climate-Resilient\u2019 growth pathways into activites of development finance institutions. Abstract Development finance institutions (DFIs) are in a position to […]<\/p>\n","protected":false},"featured_media":48269,"template":"","meta":{"_acf_changed":false,"inline_featured_image":false},"type_publication":[49,47],"class_list":["post-10080","publication","type-publication","status-publish","has-post-thumbnail","hentry","type_publication-climate-report","type_publication-special-issues"],"acf":[],"yoast_head":"\n
\nDevelopment finance institutions (DFIs) are in a position to be key actors in aligning development and the 2\u00b0 challenge. One of the principal challenges t oday is to scale-up the financial flows to the trillions of dollars per year necessary to achieve the 2\u00b0C lo ng-term objectives. Achieving this transition to a low-carbon, climate resilient (LCCR) economic model requires the integration or \u2018mainstreaming\u2019 of climate issues as a prism through which all investment decisions should be made. This paper presents an overview of the opportunities and challenges of linking a LCCR transition with the objectives of development finance. It first presents the two-fold challenge of climate change and development for
\ncountries around the world. Second, the paper explores the role of development finance institutions and their support for the transition to a low-carbon, climate-resilient economic model. Finally, it examines a necessary paradigm shift to integrate climate and development objectives to establish a \u2018LCCR development model\u2019 able to simultaneously tackling development priorities and needs for resilient, low-carbon growth. This will necessitate a move from focusing on a \u2018siloed\u2019 vision of climate finance to a means of aligning activities across the economy with the LCCR objectives to ensure that the majority of investments are coherent with this long-term transition.<\/p>\n