Climate finance is supposed to fund projects in developing countries that support the path towards limiting global warming to 1,5°C – a goal that was confirmed in the Paris Agreement in December 2015. For this it needs a paradigm shift to low-emission and climate-resilient development as the statute of the Green Climate Fund (GCF) states. At the same time, projects funded under climate finance should not hamper development or lead to the violation of human rights. Climate finance can therefore not only focus on the environmental aspects of the investments funded, but also needs to be incorporated into the wider context of development, as i.a. the Sustainable Development Goals (SDGs) are reflecting.
Diplomacy has an important role to play in creating an economy compatible with the target of staying below 2°C warming, agreed in Paris in 2015. At the climate conference in Marrakech (COP22) from 7 to 18 November 2016, dubbed the “implementation conference”, many new initiatives strengthened the impression that low-carbon transformation had gone mainstream.