The importance of development banks for financing climate change mitigation and adaptation

Abstract

Climate change and global negative consequences require measures to adapt to a more sustainable model of economic growth and development. Therefore, mitigating the harmful effects and promoting a sustainable and climate-resilient economy is a priority. One of the key roles in the process of transforming economies into a low-carbon future is played by development banks. The aim of this paper is to investigate the role of development banks in climate finance through a review of the literature and analysis of data on climate finance of member states of the Development Assistance Committee within the Organization for Economic Cooperation and Development in 2012-2018. A methodological approach to the analysis of existing theoretical starting points and empirical analysis of available secondary data was used. The expected contribution of this paper is to increase the visibility of the importance of development banks as channels for the distribution of climate finance, which were significant stakeholders in the transmission of climate finance from developed to less developed countries.