Stable Investments in Times of Instability

The international community is facing a shrinking budget for greenhouse gas emissions in order to limit global warming to 1.5 degrees Celsius and, at the same time, a rise in geoeconomic fragmentation. A joint discussion paper by PIK (Potsdam Institut für Klimafolgenforschung) and KfW Research emphasizes the advantages of international climate protection by preventing climate damage, promoting innovation and growth in green technologies, and reducing dependence on fossil fuels. Current climate investments must triple in order to achieve the Paris climate targets. The required increase is even higher in low- and middle-income countries, where access to capital is constrained. Against this backdrop, mechanisms that ensure reciprocity and efficient distribution of available funds are key. Starting points include a carbon border adjustment mechanism and minilateral alliances for coordinated climate investments.

Stable Investments in Times of Instability: Bridging Interests to Revive International Climate Diplomacy(PDF, 529 KB, accessible)

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