Measuring the private capital response to climate change: a proposed dashboard
In order to meet international climate goals, there is a collective challenge to “shift the trillions” in private capital to help drive the transition to a zero carbon, climate-resilient economy. Public sources of finance will not be able to meet this demand on their own. As more initiatives among the business and investment community strive to ensure that their climate actions align with the Paris Agreement, in particular Article 2.1 (c) on ‘’making finance flows consistent with a pathway towards low GHG emissions and climate-resilient development,’’ tools will be needed to track overall progress against this ambition. This brief, which is part of CPI’s work on tracking global climate finance flows, proposes a preliminary methodological approach and analytical framework to measure the nature and speed of shifts in private capital in response to climate change. It also outlines a way to present this information in a dashboard format, based on initial scoping of current publicly available data and methods completed in partnership with the European Climate Foundation in 2018.