INDCs will drive global climate finance growth

Significance

In preparation, 146 countries submitted climate action plans that are ambitious enough to allow limiting global warning below 2 degrees Celsius. The 'Intended Nationally Determined Contributions' (INDCs) cover 86% of the global economy and areas of high demand for financial flows. Announcements by multilateral development banks (MDBs) and the Green Climate Fund (GCF) suggest increasing public provision of climate finance.

Impacts

• The announced plans will help cut global CO2 emissions by 9% by 2030 compared with 1990 levels.
• Specific pledges such as India's commitment to generate 40% of energy from non-fossil fuel sources by 2030 will drive capital allocation.
• Climate financing may become less fragmented, though the GCF will require more years to deliver at full potential.