The document provides an overview of the OECD's climate-related finance work. It discusses measuring and mobilizing climate finance for developing countries, including progress toward the $100 billion annual climate finance goal. It also addresses aligning public and private sector finance with climate goals, such as developing approaches for green budgeting and promoting climate action by corporations. The document summarizes several initiatives to strengthen domestic enabling conditions for clean energy finance, align development assistance with climate goals, and assess investments in green infrastructure.

1. OVERVIEW OF CLIMATE-
RELATED FINANCE WORK
Climate Change Expert Group │ Global Forum on the Environment and Climate Change
17 March 2021
Raphaël JACHNIK │ Policy Analyst
Climate, Biodiversity and Water Division │ OECD Environment Directorate

2. 17 March 2021 │CCXG Global Forum 2
COVID recovery trajectories and support measures
critical for the decade to deliver on climate action
Source: OECD/IEA │ Climate Change Expert Group
Build back better?
• Step up actions for a green and
inclusive recovery.
• Mobilise finance to invest in the
green recovery
• Speed the transition to a low-
emissions economy.
• Track progress through pertinent,
comparable and timely data.
Source: OECD │ Focus on green recovery

3. Addressing finance-related topics under the UNFCCC
Measuring and mobilising climate finance
for developing countries
Aligning public and private sector finance
with climate goals
17 March 2021 │CCXG Global Forum 3

4. MEASURING AND MOBILISING
CLIMATE FINANCE FOR DEVELOPING
COUNTRIES
17 March 2021 │CCXG Global Forum 4

5. Measuring progress towards the
USD 100 billion climate finance goal
Aggregate trends:
• Total: +11% in 2018 versus
+ 22% in 2017
• Growth driven by public
climate finance
• Mobilised private climate
finance plateaued in 2018
• A 13% annual average
increase needed in 2019
and 2020 to meet the goal
2020 figures in 2022 due to time lags in consolidated reporting and availalability of official data
Source: OECD │ Climate Finance and the USD 100 Billion Goal
17 March 2021 │CCXG Global Forum 5

6. Measuring progress towards the
USD 100 billion climate finance goal
Mitigation represents over 2/3 of total
climate finance provided and mobilised
Loans represent an increasing
proportion of public climate finance
Source: OECD │ Climate Finance and the USD 100 Billion Goal
Latest analysis
includes detailed
sectoral and
geographical
breakdowns
17 March 2021 │CCXG Global Forum 6

7. Assessing the effectiveness of
multilateral development organisations
Study on climate change:
• Review how MOs help
countries respond to
climate change
• Review how MOs work
together and how the
Multilateral System
responds to climate
change
• Findings to inform
COP26 preparations.
Source: MOPAN │Multilateral Organization Performance Assessment Network
17 March 2021 │CCXG Global Forum 7

8. Strengthening domestic enabling conditions
for clean energy finance and investment
Source: OECD │ Clean Energy Finance and Investment Mobilisation
Technology scope: grid-
scale renewable generation
and energy efficiency in
buildings and industry
Timeframe: 2019-2023
initially, with foreseen
prolongation and intended
expansion to other countries
17 March 2021 │CCXG Global Forum 8

9. Strengthening green finance capacities in
Eastern Europe, Caucasus and Central Asia
Source: OECD │GREEN Action Task Force
Across
countries
Update of the OECD database of fossil fuel subsidies
Strengthen collection of information on environmentally-related revenue and
expenditure by the statistical system
Approval of the ESG Disclosure Principles for commercial banks by the
National Bank of (became mandatory in 2021)
Support to strengthen the National Ecological Fund and accelerating efforts
towards its institutional reform ; Support to implement environmental public
expenditure programmes with focus on urban transport
Closed evidence gap on household access to green finance; Support to
setting up debt-for-environment swap
Mobilise efforts for capital raising for climate action and green economy
planning up to 2030
17 March 2021 │CCXG Global Forum 9

10. ALIGNING PUBLIC AND PRIVATE
SECTOR FINANCE WITH CLIMATE
GOALS
17 March 2021 │CCXG Global Forum 10

11. Consistency and alignment of finance?
17 March 2021 │CCXG Global Forum 11
Scale up climate-aligned finance
Actively manage transition finance
Phase out misaligned finance
Source for the visual: EU Platform on Sustainable Finance │ Virtual Events on EU Taxonomy
Real economy
finance flows
(USD trillion)
Finance
stocks (USD
trillions)
Global stock market
(WFE, 2020)
60 to 90
Outstanding debt
(Bloomberg, 2021)
280
Derivatives (BIS/
unofficial, 2020)
500 to 1000

12. Developing practical and pragmatic
approaches for green budgeting
Source: OECD │ Paris Collaborative on Green Budgeting and French Government │ Le budget vert en France pour 2021
OECD Green
Budgeting Framework
and decisions to design
an approach to green
budget tagging
17 March 2021 │CCXG Global Forum 12
Example: French framework development in 2019 and pilot
green budget statement annex to the general budget bill for 2021
• 6 environmental objectives including climate mitigation and
adaptation
• EUR 574 billion in budgetary and fiscal expenditures total
• About 10% identified as having an impact

13. Aligning development co-operation
with climate goals and other SDGs
Source: OECD │ Aligning Development Co-operation and Climate Action │ Total Official Support for Sustainable Development
17 March 2021 │CCXG Global Forum 13
DAC activities relating alignment include:
• A task force on monitoring individual
and collective DAC commitments
• Concrete discussions on how to
assess the alignment of ODA with
international climate goals and
decarbonisation pathways
• Measures of the contributions of
development finance to SDGs, notably
through Total Official Support for
Sustainable Development (TOSSD)

14. Promoting climate action of financial
and non-financial corporations
Source: OECD │ Responsible business conduct and climate change
17 March 2021 │CCXG Global Forum 14
General and sectoral guidance to
identify, account for, prevent or
mitigate adverse impacts, including by:
– Screening and managing risk to
society and the planet
– Setting targets consistent with
international commitments
– Social and environmental
disclosure, e.g. GHG emissions

15. Assessing institutional investments
in green infrastructure
Source: OECD │ Centre on Green Finance and Investment
17 March 2021 │CCXG Global Forum 15
• Granular snapshot of total holdings of infrastructure
worldwide by G20 and OECD institutional investors
• “Only” estimated USD 1.04 trillion currently invested
in infrastructure, out of which USD 0.31 trillion green
• Under current investment regulations, pension funds
and insurance companies could allocate maximum
USD 11.4 trillion to infrastructure, i.e. 4.1% of their
total asset holding
• Levers and policy actions include robust project
pipelines, adjusted mandates of institutional
investors, and project/financial securitisation

16. Country Sector Reference points Lessons learnt
IEA scenario for the Nordics
EU Taxonomy for Sustainable Activities criteria
Real economy investments
only very partially aligned
Different reference points
lead to varying results
Granular data needs: targets and
pathways, GHG performance of
assets, corporate and household
investments, financing sources
Latvia’s National Communication to the UNFCCC
IEA scenario for the EU
EU Taxonomy for Sustainable Activities criteria
UK Carbon Budget trajectories
Energy Performance Certificates ratings
Climate Bonds Initiative criteria
Measuring the alignment of investments
and financing with climate goals
Source: OECD │ Research Collaborative on Tracking Finance for Climate Action
17 March 2021 │CCXG Global Forum 16
2019-2021: Three country- and sector-level pilot studies for real economy investments
2021-2022: Explore options to develop a policy relevant framework and scale up
measurement and indicators towards informing UNFCCC Global Stocktakes