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Finance and intended nationally determined contributions (INDCs): enabling implementation

Publication date:
M. Hedger
Type of publication:

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. 

Although they have been based on national consultation and have enriched the understanding of the impacts and responses to climate change, the researchers conclude that there is a need to focus on implementation in order to make progress in realising ambitions.

They suggest that the possibility of a virtuous cycle in which such successful implementation of INDCs empowers countries to increase the ambition of their actions, will be essential to realise if we are to keep global warming within 2 degrees.

Elements to facilitate implementation of INDCs, particularly in developing countries could include:

Estimates of current domestic public expenditure on climate relevant actions, ideally by sector
Fiscal incentives or shifts in the regulatory framework for financial institutions that might enable realisation of anticipated actions
An indication of the key institutions that could be involved in marshalling required finance and investment including for example Ministries of Finance, National Development Banks, Central Banks, and others
Mechanisms for linking national spending and budgeting frameworks with implementation of the actions identified, and prospective changes or increases to expenditure
Estimates of current international support for climate action, and possible needs for additional support to scale up implementation

This paper reflects on the current and potential role for finance in INDCs as we move forward.