Rebalancing climate finance: analysing multilateral development banks' allocation practices

Lina Xie; Bert Scholtens; Swarnodeep Homroy

doi:10.1016/j.erss.2023.103127

Rebalancing climate finance: analysing multilateral development banks' allocation practices

Lina Xie, Bert Scholtens^*, Swarnodeep Homroy

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

Abstract

This paper provides novel evidence on the climate financing practices of Multilateral Development Banks (MDBs) and their long-term social and climate consequences. We find that the majority of MDB climate finance is for mitigation projects, concentrated in a few relatively wealthy countries, and positively correlates with countries' greenhouse gas emissions but not with their vulnerability to climate risks. A transition towards a more equal allocation between mitigation and adaptation can substantially reduce global climate vulnerability for an additional 1.9 billion people without significant changes in the annualized growth rate of emissions. Our results contribute to the discussion on global equity in climate finance allocation and the societal impact of climate change.

Original language	English
Article number	103127
Number of pages	20
Journal	Energy Research and Social Science
Volume	101
Early online date	25 May 2023
DOIs	https://doi.org/10.1016/j.erss.2023.103127
Publication status	Published - 1 Jul 2023

Keywords

Climate finance
Multilateral development banks
Emissions
Vulnerability

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1016/j.erss.2023.103127Licence: CC BY

Xie_2023_ERSS_Rebalancing-climate-finance_CC
Copyright © 2023 The Authors. Published by Elsevier Ltd. This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/).
Final published version, 5.25 MBLicence: CC BY

Cite this

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title = "Rebalancing climate finance: analysing multilateral development banks' allocation practices",

abstract = "This paper provides novel evidence on the climate financing practices of Multilateral Development Banks (MDBs) and their long-term social and climate consequences. We find that the majority of MDB climate finance is for mitigation projects, concentrated in a few relatively wealthy countries, and positively correlates with countries' greenhouse gas emissions but not with their vulnerability to climate risks. A transition towards a more equal allocation between mitigation and adaptation can substantially reduce global climate vulnerability for an additional 1.9 billion people without significant changes in the annualized growth rate of emissions. Our results contribute to the discussion on global equity in climate finance allocation and the societal impact of climate change.",

keywords = "Climate finance, Multilateral development banks, Emissions, Vulnerability",

author = "Lina Xie and Bert Scholtens and Swarnodeep Homroy",

note = "Funding: Lina Xie thanks the financial support from the China Scholarship Council. The authors did not receive specific funding for this research project.",

year = "2023",

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doi = "10.1016/j.erss.2023.103127",

language = "English",

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journal = "Energy Research and Social Science",

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TY - JOUR

T1 - Rebalancing climate finance

T2 - analysing multilateral development banks' allocation practices

AU - Xie, Lina

AU - Scholtens, Bert

AU - Homroy, Swarnodeep

N1 - Funding: Lina Xie thanks the financial support from the China Scholarship Council. The authors did not receive specific funding for this research project.

PY - 2023/7/1

Y1 - 2023/7/1

N2 - This paper provides novel evidence on the climate financing practices of Multilateral Development Banks (MDBs) and their long-term social and climate consequences. We find that the majority of MDB climate finance is for mitigation projects, concentrated in a few relatively wealthy countries, and positively correlates with countries' greenhouse gas emissions but not with their vulnerability to climate risks. A transition towards a more equal allocation between mitigation and adaptation can substantially reduce global climate vulnerability for an additional 1.9 billion people without significant changes in the annualized growth rate of emissions. Our results contribute to the discussion on global equity in climate finance allocation and the societal impact of climate change.

AB - This paper provides novel evidence on the climate financing practices of Multilateral Development Banks (MDBs) and their long-term social and climate consequences. We find that the majority of MDB climate finance is for mitigation projects, concentrated in a few relatively wealthy countries, and positively correlates with countries' greenhouse gas emissions but not with their vulnerability to climate risks. A transition towards a more equal allocation between mitigation and adaptation can substantially reduce global climate vulnerability for an additional 1.9 billion people without significant changes in the annualized growth rate of emissions. Our results contribute to the discussion on global equity in climate finance allocation and the societal impact of climate change.

KW - Climate finance

KW - Multilateral development banks

KW - Emissions

KW - Vulnerability

U2 - 10.1016/j.erss.2023.103127

DO - 10.1016/j.erss.2023.103127

M3 - Article

SN - 2214-6296

VL - 101

JO - Energy Research and Social Science

JF - Energy Research and Social Science

M1 - 103127

ER -

Rebalancing climate finance: analysing multilateral development banks' allocation practices

Abstract

Keywords

UN SDGs

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