ABSTRACT
There are a large number of proposals on international climate financing that attempt to bridge the shortfall between current investment and projected needs. Several of these reflect more innovative mechanisms to raise carbon finance and leverage private-public partnerships. They include recycling revenue from global carbon taxes; investing a portion of developing countries’ foreign exchange reserves into mitigation and adaptation; modifying conditions for currency provision (for example through donating Special Drawing Rights, or debt-for-clean-energy programmes); and using public money to partially guarantee green investments in developing countries (The Economist, 2009b). Ultimately, an integrated approach or an international coordinating body will be essential to ensure that a mix of carbon market and fund-based mechanisms will function together in an efficient and adequate manner.
