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Financing Climate Futures

Rethinking Infrastructure

image of Financing Climate Futures

Infrastructure worldwide has suffered from chronic under-investment for decades and currently makes up more than 60% of greenhouse gas emissions. A deep transformation of existing infrastructure systems is needed for both climate and development, one that includes systemic conceptual and behavioural changes in the ways in which we manage and govern our societies and economies. This report is a joint effort by the OECD, UN Environment and the World Bank Group, supported by the German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety. It focuses on how governments can move beyond the current incremental approach to climate action and more effectively align financial flows with climate and development priorities. The report explores six key transformative areas that will be critical to align financial flows with low-emission and resilient societies (planning, innovation, public budgeting, financial systems, development finance, and cities) and looks at how rapid socio-economic and technological developments, such as digitalisation, can open new pathways to low-emission, resilient futures.

English

Unleash innovation to accelerate the transition

Innovation is critical for the economic transformation required to address climate change. The rate and direction of innovation will, to a large extent, determine the economic cost and therefore the likelihood of achieving the Paris Agreement’s mitigation and adaptation goals. This chapter examines current trends in innovation. It highlights the barriers and opportunities for accelerating the deployment of technologies, business models and services that support the transition to a low-emission, resilient future. The chapter outlines four priority actions for scaling up climate solutions: deploy targeted innovation policies to create and shape markets for climate innovations, scale up public investment in research and development (R&D), overcome financial barriers to demonstration and early-stage commercialisation to bring existing technologies to scale, and promote international technology diffusion to ensure that innovation benefits all.

English

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