An analysis of the potential of private finance as part of the agreement to mobilize 100 billion USD per year from 2020, for climate change

This document addresses climate finance and the developed countries' increased emphasis on so-called private finance. Acknowledging the lack of agreement about the role and definition of private finance, it analyses its potential in relation to the 100 billion USD target. It states that, while private finance may have some good potential for specific sectors and countries, the least developed countries, as well as adaptation, as one of the main activities related to climate change, are less likely to benefit from private finance. The conclusions indicate that private finance may not be the perfect solution Western governments are hoping for. The paper ends with a number of recommendations on how to create a framework for private finance.