Drawing upon a review of 24 adaptation-focused and broader climate change financing strategies, the report identifies emerging lessons for developing countries and for organizations that provide support to governments with the preparation of these strategies. Countries are taking different approaches to the development and content of their financing strategies for adaptation, depending upon the status of their adaptation planning process and the availability of data and analysis to inform their preparation. Despite these differences, some shared lessons that emerged from the review are:

• Most strategies identify gaps in financing and potential sources of financing, but greater emphasis could be placed on the strategic use of public finance for adaptation, such as domestic finance and international grant and concessional finance, to leverage further investment.
• Strategies could place greater emphasis on needed improvements in the enabling environment to encourage increased private sector investment, as well as on analysis to identify the types of adaptation projects that generate revenue streams that could attract private sector investment.
• It is not clear that a strategy that includes detailed costing of adaptation actions is more effective than a high-level strategy that builds awareness and high-level political buy-in.
• Ministries that lead on adaptation need to be engaged in processes to develop financing strategies for NDCs, the Sustainable Development Goals, national development plans, and COVID-19 pandemic recovery. This would help to ensure that NAP priorities are addressed and aligned with national priorities.
• Ministries of finance and planning, which often have stronger connections with financial actors and development partners, should be engaged in the preparation of financing strategies for adaptation.
• Improved tracking of climate finance at the country level is needed to understand if financing strategies and other adaptation policies are successful in mobilizing investment for adaptation priorities.
• These strategies can help governments take a coordinated and strategic approach to the financing of adaptation that considers the best use of public and grant finance, as well as alignment with related sustainable development goals.

Overall, the report finds that a well-defined financing strategy for adaptation can be critical tool in ensuring that adaptation financing priorities are driven by the climate needs of developing countries and in helping governments to take a coordinated and strategic approach to the financing of adaptation that considers the best use of international and domestic public and private finance.

The main takeaways from this report can be summarized as follows:

• India is successfully incentivizing consumer demand for electrified two-wheel and three-wheel vehicles and is beginning to scale up demand for electrified four-wheel vehicles and buses, too.
• India remains a minor player in battery manufacturing, which is still dominated by China, but it has initiated policy schemes to incentivize battery manufacturing in the country. Consulted investors and companies see major growth potential for India in this realm, which they believe will help it to expand domestic battery production and EV adoption dramatically.
• For India to achieve the scale of EV growth it desires, however, it will need to address financing challenges for consumers and the country’s insufficient charging infrastructure. Although the government has formulated policy solutions on both fronts, investors and companies consulted for this report identified space for improvement and expansion. Other potential obstacles to this growth include supply chain shortages, lack of complementarity between state and federal policies, and skill gaps in the labor force. 
• The country could also embrace battery swapping, which experts believe can help to expand EV demand and adoption and which the Indian government has already begun to support through policy initiatives.

To comply with the Paris Agreement, the world will have to phase down fossil fuels, which will erode related revenues. This report examines the possible financial consequences of the clean energy transition in Brazil, Russia, India, Indonesia, China, and South Africa (BRIICS countries). The study assesses current dependency on fossil fuel revenues and uses IEA scenarios of energy demand, supply, and prices from 2030 to 2050 to project future revenues.

As the global clean energy transition gathers pace, the report shows that BRIICS economies risk a USD 278 billion gap in revenues by 2030 that could reverse progress on poverty eradication and economic development. By 2050, overall fossil fuel revenues in BRIICS countries could be as much as USD 570 billion lower than a business-as-usual scenario, which would see governments failing to phase down fossil fuels enough to avoid the worst climate impacts.

The report aims to support BRIICS and other governments in planning for a managed transition to net-zero and to reduce the risk of revenue crises.
 

At the 26th Conference of the Parties (COP 26) of the United Nations Framework Convention on Climate Change, 39 governments and public finance institutions joined the Statement on International Public Support for the Clean Energy Transition, a joint commitment to end international public finance for fossil fuels and instead prioritize public finance for clean energy.

The war in Ukraine and the compounding debt, climate, and energy price crises mean that now more than ever, public finance needs to be prioritized for the energy efficiency and clean energy solutions that can accelerate the transition toward a more secure, sustainable, and peaceful future away from fossil fuel dependence.

This report highlights key opportunities and challenges for signatories to the Glasgow Statement to meet their commitments to end international public finance for fossil fuels by the end of 2022 and instead prioritize public finance for clean energy. It identifies good practices for policies that exclude international public finance for fossil fuels, assesses the current status of implementation of the Glasgow Statement, and gauges the efforts required to implement the statement in line with the 1.5°C global warming limit. The report contains detailed case studies on Ethiopia and Sri Lanka, examining how the Glasgow Statement can play an important role in accelerating a clean and just energy transition in low- and middle-income countries.

This report explores the unprecedented potential and the challenges of implementing the statement. It finds that:

• The Glasgow Statement could directly shift USD 28 billion in international public finance for fossil fuels toward a clean and just energy transition each year.
• Most countries and institutions have yet to publicize Glasgow-aligned policies. Export credit agencies’ pre-existing policies lag behind most and need to be significantly improved.
• The main implementation risks that signatories must avoid are introducing large exemptions for gas support and the lack of concrete strategies to increase transformative clean energy support.
• Good practices exist: robust policies excluding international public finance for fossil fuels are in place in Denmark and the United Kingdom, as well as at Swedfund, the French Development Agency, Financierings-Maatschappij voor Ontwikkelingslanden, and the European Investment Bank.
• Case studies on Ethiopia and Sri Lanka show that the Glasgow Statement can play an important role in avoiding fossil fuel lock-in and accelerating a clean and just energy transition in low- and middle-income countries.

The report recommends that high-income signatories that provide international energy finance should aim to develop and publish updated policies for ending international public finance for fossil fuels and advancing a clean and just energy transition by COP 27. These policies should match the existing best-in-class policies, aligning with the 1.5°C goal. In addition, signatories should use the statement as an opportunity to shift the wider international public finance landscape and work together to secure new signatories to join the statement by COP 27, notably by using their voices and votes as MDB shareholders against new financing for fossil fuel projects and ensuring that regional coalitions or associations align with the Glasgow Statement.

The report serves as a starting point for the Government of Indonesia, as well as all stakeholders, concerned citizens, and the wider public to “follow the money”: to track the flow of public funding and to understand how public money is being spent on different types of energy. Through data visualization of the flow and allocation of the support measures throughout the period observed, this report also aims to shed light on government spending on fossil fuels vis-à-vis renewable energy and clean technology.

The Government of Indonesia provides a range of energy support measures, incentives, and interventions that stimulate energy production and consumption, some of which are directed to support and protect the vulnerable segments of the population (e.g., poor households and small businesses). There are also other measures aiming to promote a transition toward clean and renewable energy, although, at present, government support is still predominantly addressed to the fossil fuels sector.

Overall, 77% (60 measures out of 78) of the support measures identified in the report were for the benefit of energy producers. Only 20% of all measures were given to support consumers, and the rest of the measures were provided to benefit both producers and consumers.

Support for fossil fuels and fossil fuel-generated electricity also remains substantially higher than for renewable energy, undermining the effort to achieve 23% of renewable sources in the energy mix by 2025 and net-zero carbon emissions by 2060.

Fossil fuel support drains the public budget, particularly in the current context of high energy prices. Support for fossil fuels is coming at a high cost to Indonesia’s public finances, and it is slowing Indonesia’s energy transition in two ways: 1) it locks in fossil fuel production, leading to ongoing fossil fuel dependence; and 2) by lowering the price of fossil fuels and fossil-sourced electricity, it makes it harder for renewables to compete.

Given its nationally determined contribution to the United Nations Framework Convention on Climate Change as well as its renewable energy targets, it would be reasonable for Indonesia to focus more on creating effective incentive mechanisms to further promote the adoption and development of renewable energy. Shifting or reallocating support from fossil fuels to renewable energy would be a good start.

Notes:

1. To select multiple categories, hold the Ctrl key and select the desired category.
2. The fiscal year for the State Budget of the Government of Indonesia starts in January and ends in December.
3. Type of support measure*: Based on SDG indicator 12.c.1 (Measuring Fossil Fuel Subsidies in the Context of the Sustainable Development Goals | UNEP - UN Environment Programme)

Indonesia's commitments to reducing greenhouse gas emissions include efforts to restore 2 million hectares of degraded peatland by 2030 and to restore and better manage mangrove ecosystems. Ecosystem restoration is an important part of climate change mitigation and adaptation. Both peatlands and mangroves store large amounts of carbon and increase resilience to extreme events.

The results of the SAVi assessment presented in this report highlight the social, economic, and environmental value of peatland and mangrove ecosystems. Our results show that sustainable management has high societal value under all simulated climate scenarios. Investing in nature to restore peatlands and mangroves in our study locations provides a cost-effective way to address climate change and support communities. These results provide insight into how similar restoration projects could be done in other locations. They also show that impacts on the local community are critical for success.

This document is the third in a series of synthesis reports that assess progress on gender-responsive approaches in National Adaptation Plan (NAP) processes at the global level. It coincides with the midpoint of the Gender Action Plan under the United Nations Framework Convention on Climate Change (UNFCCC), making this a good moment to reflect on progress in integrating gender considerations in NAP processes.

We explore this through a systematic review of the NAP documents submitted to the UNFCCC, as well as through practical examples that illustrate how countries are taking a gender-responsive approach to their NAP processes.

As countries increasingly move from planning to implementation of adaptation actions, more opportunities are created to work with diverse stakeholders to build resilience while also creating more equitable communities and societies.

Comprised of Mexico, Liechtenstein, Monaco, the Republic of Korea, Switzerland, and Georgia, the EIG bridges the gap in international climate negotiations between developed and developing countries. Through its shaping of the Kyoto Protocol and the Paris Agreement over two decades, the coalition has shown the effectiveness possible when countries form alliances not based on regional, ideological, or economic identity—but rather on shared values, principles, and approaches.

In “20 Years of the Environmental Integrity Group in Global Climate Governance: Lessons and Prospects,” delegates representing all its member states reflect on the history and purpose of the EIG and its contribution to the making and remaking of global rules for the climate. From telling the story of how the coalition formed, sharing insights on its role in the UNFCCC process, and offering stories of how individual members are separately advancing global climate governance, the book turns to the future and our collective challenge of turning climate ambition into action.

This report shows that significant structural changes are required in the energy sector to align with pathways limiting warming to 1.5°C. The pathways consistent with the IPCC’s assessment of feasible and sustainable deployment of Carbon Dioxide Removal and Carbon Capture and Storage technologies leave no room for delayed action. The oil and gas phase-out timelines presented in this report constitute the ambition level consistent with the best estimates of the current and future capacity of mitigation technologies. Accordingly, this report presents the key implications for governments and financial institutions aiming to align their policies and investments with feasible 1.5°C pathways. Its recommendations are designed to guide the understanding of the Paris alignment, consistent with the IPCC findings, and should inform plans to strengthen and amplify policy interventions.

In recent years, investor–state arbitral tribunals have awarded increasingly high amounts of compensation to foreign investors, which can exacerbate the negative impacts of investment treaties on people and the economy in host states. This paper contributes to discussions on how to address this issue by comparing approaches used to award compensation in investment tribunals with those used by some of the most active and/or high-profile international courts and tribunals in international private property claims cases.

From this comparative analysis, the paper identifies the following options for states and other proponents to consider when considering investor–state dispute settlement reform:

• Crafting new treaty language that requires investor–state arbitral tribunals to apply a different standard of reparation to customary international law or provides greater guidance on how to put such standards of reparation into practice.
• Requiring investor–state arbitral tribunals to engage more with the decisions of domestic mechanisms regarding reparation for investment treaty breaches.
• Encouraging parties to seek agreement on matters of reparation, including through negotiated or mediated settlements following arbitral decisions on the merits.
• Encouraging—or requiring—greater use of tribunal-appointed experts to reduce reliance on party-appointed experts when calculating compensation for investment treaty breaches.