Article 2.1c of the Paris Agreement breaks new ground. It is the first time that the United Nations Framework Convention on Climate Change (UNFCCC) process has set a collective goal reflecting the full scale of effort needed on finance to successfully address climate change.
Multilateral climate funds play a key role in using public finance to help drive the economic and societal transformation necessary to address climate change. There is growing pressure for policymakers to make the architecture of funds more effective and coherent.
Limiting global warming to below 2°C above pre-industrial levels will require massive reductions in greenhouse gas (GHG) emissions from business-as-usual—on the order of 40 percent to 70 percent in 2050 compared to 2010, and near net zero emissions by 2100.
