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Climate finance flowing, geothermal receiving only marginal part of it

Climate finance flowing, geothermal receiving only marginal part of it (Source: World Bank Website Screenshot)
Francisco Rojas 9 Sep 2014

In CPI's report "Global Landscape of Climate Finance 2013" mentioned by the World Bank, it is estimated that US$359 billion a year flows between countries for Climate Finance, yet this is only a third of what it should be invested to effectively tackle climate change.

In a very lengthy article from the World Bank, the status for financial resources directed toward renewable energy is analysed. The data from the report comes from CPI’s Global Landscape of Climate Finance 2013 and it details that about “US$359 billion a year” has been going between countries and invested in the aforementioned projects.

Where do all these funds come from? The World Bank cites the Climate Policy Initiative’s Landscape of Climate Finance 2013 stating that “about 62 percent – comes from private investment, largely from project developers. The other third comes from public sector sources, such as development banks and government aid”. They also define these funds as “Climate Finance”, due to the positive impact it has on the environment and encompasses all renewable energies.

Yet, despite the apparent large volume of funds, the estimates say that in order to effectively tackle climate change, the investment should be “over US$700 billion a year and possibly more than US$1 trillion a year.”

All in all, for geothermal, which only represents a fraction of the total weight of renewables, this is even more relevant.

These investment targets could be achieved by a variety of measures such as more Government funding and action via adequate policymaking, more public and private partnerships and removing subsidies to fossil fuels, according to the aforementioned source.

To read the full article, please follow the link below:

Source: The World Bank Website