January 2024 Newsletter Recap: Climate Finance

Did you miss the Climatelinks January newsletter? We’ve got you covered. Please find a recap of the January ‘Climate Finance’ theme below. You won’t want to miss this short list of top programs, resources, and blogs from the month. Subscribe to our newsletter today. Do you want to contribute to the Climatelinks community? Send us a resource, blog, or event.

The world needs trillions of dollars to reduce greenhouse gas emissions, finance the clean energy transition, and cope with the impacts of climate change. Despite recent progress, the world is still falling very short of what is needed to address the climate crisis. To help fill this gap, USAID has committed to mobilizing $150 billion in climate finance from public and private sources by 2030. 

Fresh Blog Posts

Inclusive and Impactful: Promising Approaches to Integrate Gender into Climate Finance

Women, girls, and gender-diverse individuals are more vulnerable to climate impacts and face the additional risk of discrimination in their communities. Because climate change impacts differ across genders, approaches to climate finance should too. This blog highlights some ways to implement gender-responsive climate finance approaches. 

How USAID is Working to Mobilize and Localize Climate Finance 

Only around 10 percent of climate finance is currently reaching local communities, meaning those most vulnerable to climate change are not directly benefiting from it. During COP28, USAID hosted a discussion that elevated the Principles for Locally Led Adaptation for mobilizing and localizing climate finance investments. 

Bridging the Gap: Why Climate Finance Has Become a Core Part of USAID’s Development DNA (Part 1)

Globally, the annual average of climate finance flows has reached an all-time high of $1.3 trillion, but that still falls dramatically short of what is needed to limit global warming. Finding a way to mobilize private sector money in particular will be critical to achieving global climate goals, which is why USAID is focused on reducing the barriers to climate finance investments. 

Mobilizing Finance for Climate Outcomes through USAID’s Climate Finance for Development Accelerator

The Climate Finance for Development Accelerator (CFDA) is a groundbreaking platform designed to increase and broaden participation in climate finance among a wide range of stakeholders, including private sector entities, foundations, and development banks. It serves as a vital hub, facilitating collaboration between climate finance providers and seekers and streamlining operational efficiency in partnerships with private climate finance actors. In just one year, CFDA has achieved several impressive milestones.

Catalyzing Investment for Climate Toward USAID's $150 Billion Target 

A blended finance approach strategically deploys public resources to attract private capital for social gain. USAID is using the approach to align incentives that appeal to investors but also benefit the climate and communities most susceptible to the impacts of climate change. USAID INVEST, one of the Agency’s largest global initiatives, uses a blended finance approach, with nearly a quarter of its funds in the last six years channeled into climate-related efforts.

Editor’s Pick: Climate Finance Resources

This blog highlights information and tools related to climate finance that might be useful to practitioners. It includes a technical brief on gender and climate finance, a webinar on USAID’s climate finance work, a primer for integrating climate finance into USAID energy sector programming, and more. 

New Resources

Climate Finance Sector Page 

Climatelinks recently updated the descriptions and resources on each of its 17 sector pages. The climate finance sector page provides a description of USAID’s climate finance goals and how the Agency is working to achieve them. It also highlights helpful resources and recent blogs on the topic. 

USAID Progress on Climate Finance

USAID has launched or joined a variety of efforts across the U.S. Government and with private sector partners to address the climate finance funding gap. In this brief, USAID lays out the progress it has made towards its Climate Strategy target of mobilizing $150 billion in climate finance by 2030, identifies five key barriers to securing finance, and explains how the Agency is planning to overcome these barriers.

Locally Led Adaptation: Primer and Guidance Note

The locally led adaptation (LLA) approach recognizes the value of local knowledge and expertise, leverages the strengths of existing local systems, and addresses historical power imbalances. USAID’s Climate Adaptation Support Activity developed an LLA primer explaining the context of USAID’s commitment to sustainable, locally led development and equitable climate action, along with a guidance note with examples to help USAID apply LLA throughout the program cycle.

Climate Risk Management Spotlight

Climate Risk Screening and Management Tools

Climate risk management is the process of assessing, addressing, and adaptively managing climate risks that may impact the ability of USAID programs to achieve their objectives. To facilitate climate risk screening and management in strategy, project, and activity design, USAID has developed a variety of tools for practitioners. By helping assess climate risk, these tools can improve the effectiveness and sustainability of development interventions. 

Call for Content

Share your events and resources or write a blog related to an upcoming monthly theme! Check out our upcoming themes to see if your climate work aligns:

• February: Climate Finance
• March and April: Mitigation and Low-Emissions Agriculture
• May and June: Youth-led Climate Action
• 2024 Cross-cutting Themes: Systems Change and Locally Led Development

If your USAID-related climate change work relates to these themes, Climatelinks would love to feature your work and share your resources. Send us a resource or blog.