European Capacity Building Initiative

At cross-purposes: subsidies and climate compatible investment

This paper highlights the implications of the current separation of the discourses on PCF and on subsidies, and the opportunities that exist to unlock climate-compatible investment by linking these fields. Though climate finance aims to enable CCD, this paper points out that, within developing countries, subsidies to fossil fuels (alone) currently dwarf any efforts toward CCD through climate finance.

FC Publication Date: 
16 April 2013
FC Publication: 
Author: 
Luis Gomez-Echeverri