Financing Intended Nationally Determined Contributions (INDCs): enabling implementation

Working and discussion papers
October 2015
Merylyn Hedger and Smita Nakhooda
Intended Nationally Determined Contributions (INDCs) were intended to be a way to clarify how each Party to the United Nations Framework Convention on Climate Change (UNFCCC) could contribute to averting dangerous climate change and demonstrate progress from their current position. INDCs could potentially be a way in which all countries can make concerted efforts to build strong and transparent domestic foundations upon which to pursue a path to decarbonisation and enable them to set higher ambitions, post Paris.

To date, much analysis of INDCs has understandably focused on the ambition and, in the case of mitigation, the likelihood of achieving goals in the context of current policy and economic trends. Many INDCs have now been submitted. They vary considerably, reflecting national circumstances. The contributions of many developing country governments are linked to the provision of finance and other support.

Most developed countries that have submitted their INDCs have moved little from their existing positions on mitigation. Most analysts agree that the current offers will not be adequate to keep climate change within 2ºC. Moreover, there is often a difference between what governments commit to and what they actually do.

Finance, technology and capacity can be the difference between achieving – or perhaps even exceeding – commitments, or failing to meet them. This paper reflects on the current and potential role for finance in INDCs as we move forward.