Financial Options and Architecture
for Climate Change

Presented by UN Environment
Programme and the World Bank



This event examined the challenge of
mobilizing investment in climate

change mitigation, drawing upon the
expertise of organizational leaders

and country delegations.


Achim Steiner, UN Environment
Programme (UNEP), noted that the

current financial crisis and the scale
of public finances mobilized to

address mitigation would have been
inconceivable only a year ago,

and said it is time to stop
pretending that it is impossible to fund climate

change mitigation. He emphasized
that investment capital will only flow

once the correct public policies are
in place, and that this issue needs to

be taken up within UNFCCC


Katherine Sierra, World Bank, said
that, as a starting point, energy

subsidies and barriers to innovation
should be removed. Noting that

most funding will need to come from
the private sector, she underscored

the need to establish predictable
rules and long-term price signals. She

highlighted that the World Bank had
pledged US$6 billion for addressing

climate change, primarily geared
towards stimulating further investment.

She said that a market mechanism
would ideally be global and allow

benefits to flow to the developing


Daniel Kammen, University
of California at Berkeley, presented on public

finance and market mechanisms for
mitigation. He highlighted the vital

role that public funding will need
to play in helping low-carbon start-up

industries through the five-to-seven
year “valley of death