Future of Climate Finance

Providing developing countries adequate funds to reduce their greenhouse gas emissions remains vexed in spite of the urgency of combating climate change. In 2009, developed countries pledged to provide $100 billion by 2020 for a corpus to fund developing country climate mitigation initiatives. They have been tardy so far in honouring this commitment. This article tries to evaluate some of the potentially innovative sources to raise funds, examines suitability of private fi nance for the purpose and suggests ways to ensure effective utilisation of scarce public fi nance.