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Financing global climate change mitigation

Financing global climate change mitigation specifically aims at providing an appraisal of the energy efficiency situation worldwide and giving guidance on further action. The report, from the United Nations Economic Comission for Europe (UNECE) is meant to have strong practical implications for practitioners who operate in the field of sustainable energy and energy efficiency financing as well as for policymakers willing to enhance energy efficiency and renewable energy investments. The former will find references to a wide array of financing mechanisms and preliminary information on local contexts, while the latter will be given an overview of the instruments available and the economic and institutional conditions promoting their success.

Energy efficiency is among the most effective method of mitigating climate change. This has been upheld by the United Nations Regional Commissions that support, among others, energy efficiency market formation and facilitate the identification and development of bankable investment projects for climate change mitigation. The review of financing mechanisms can be relevant when considering new carbon market instruments. The UN Regional Commissions aim at spreading the knowledge of and stimulating discussion on models and best practices for replication with due adaptation under proper market conditions. The goal is to combine technical assistance in the design and implementation of investment projects, advice on policy and institutional reforms and direct links with investment funds in order to establish mechanisms able to fast-track the development of self-sustained markets for energy efficiency and renewable energy and to facilitate compliance with future legally binding reduction targets for greenhouse gasses (GHGs).

Energy efficiency, in particular, provides a win-win solution to combine climate change mitigation with energy security concerns. A more rational use of energy allows energy-importing countries to reduce their dependence on sometimes unsafe global supplies and to mitigate the adverse economic effects of excessive imports. On the other hand, energy exporters benefit from more efficient production and domestic consumption of energy as new resources for export are made available.

View the report here: Financing global climate change mitigation.