A Research Paper of Emanuele Campiglio, Research Area Leader of Climate Economics at the Institute of Ecological Economics has bee published at the Journal Climate Policy. 

Title of paper: "An ‘equal effort’ approach to assessing the North–South climate finance gap"

Alex Bowen, Emanuele Campiglio & Sara Herreras Martinez

Abstract:

This study employs a number of Integrated Assessment Models to determine what the optimal financial transfers between highincomeand developing economies would be if climate mitigation effort, measured as mitigation costs as a share of grossdomestic product, were to be divided equally across regions through a global carbon market. We find these to be larger thanboth current and planned international climate finance flows. Four out of six models imply that a North–South annual financialtransfer of around US$400 billion is required by 2050, while the other two models imply larger sums, up to $2 trillion. However, theoutlook for multi-country carbon markets is not encouraging at the moment.We thus review some potential sources of funds thatmight be used to fill the climate finance gap, including public aid, private investment, development banks, and special climaterelatedfacilities. We find the shortcomings of public climate finance appear particularly hard to overcome, and argue thatexpanding private finance, either in the form of Foreign Direct Investment or through the issuance of ‘green bonds’, appears to be a more promising direction.

Link to article: http://www.tandfonline.com/eprint/PaSKcHxPWf8yd3rCi7w9/full

PDF of article for download.

To cite this article: Alex Bowen, Emanuele Campiglio & Sara Herreras Martinez (2017) An ‘equaleffort’ approach to assessing the North–South climate finance gap, Climate Policy, 17:2, 231-245,DOI: 10.1080/14693062.2015.1094728