Editor’s choice
The SEI Initiative on Global Finance ended in 2019. You can find a summary of the key results and achievements from the initiative here.
SEI’s work on international finance and sustainable development has previously focused on the effectiveness, efficiency and fairness of the international climate finance regime, i.e. the mobilisation of international funding on the ground in developing countries to help address climate change.
While this remains an important focus, we also recognise that climate finance – and even the broader flows of Official Development Assistance – represent only a tiny fraction of global financial flows and investments. To really evaluate whether climate finance and ODA are effective in helping countries to prepare for climate change and pursue sustainable development, we also need to understand the behaviour and impacts of much larger flows of finance in the mainstream economy.
SEI analysis shows the flows of climate finance to small island developing states in the Caribbean.
Thus, SEI’s work on finance also looks beyond the climate finance agenda, at how the global financial system at large either supports or undermines the societal transitions needed to achieve the goals of sustainable development.
There are some observable shifts in finance that might facilitate incremental steps towards sustainable development, such as a growth in green bonds, large-scale investments in renewable energy and transport systems, high profile campaigns by large institutional investors to divest from fossil fuels, as well as commitments in the G20 to remove fossil fuel subsidies.
But we also know that large volumes of finance continue to undermine the climate change agenda, such as ongoing investments in fossil fuel assets. This raises questions about how well aligned the global financial system actually is with the pursuit globally of sustainable development.
The distribution of climate finance among small island states in the Caribbean between 2010 to 2015.
We are centrally interested in the way finance is supporting or undermining the transition to low carbon and climate resilient development, and particularly from the perspective of developing countries. Our work on finance is structured around three inter-related themes:
Feature / Now available in a Beta version: Aid Atlas, an online platform that helps users explore the data on development finance.
Feature / SEI is developing an interactive online platform to make data on international development aid more accessible.
Perspective / Nella Canales and Richard J.T. Klein examine the role the private sector can play in helping agriculture in sub-Saharan Africa to adapt to a changing climate.
Feature / In 2010–2014, a total of US$748 million in official development assistance focused on responding to climate change flowed to the 15 nations, mainly bilaterally.
Perspective / A new interactive tool shows how countries address priorities in their nationally determined contributions under the Paris Agreement.
Perspective / The ASEAN countries are looking to scale up and diversify their efforts to build resilience in the agriculture sector.
Perspective / To realize the ambitions of the Paris Agreement and SDGs we need to “reboot” the finance sector to steer investment onto a low-carbon, sustainable pathway.
Perspective / Wealthy governments risk inflating the private sector’s contribution to a USD 100 billion target to climate-proof developing countries.
Journal article / This paper compares priorities in countries' climate commitments with their national development plans.
SEI working paper / Climate vulnerability is only attractive to donors up to a point. This study shows that vulnerable nations are not the most likely to get adaptation funding.
Journal article / Has aid to Small Island Developing States increased following international commitments to support their efforts to tackle climate change?
SEI working paper / Ecosystem outcomes are of limited importance to almost all projects under this major international climate fund.
Other publication / This working paper outlines key features of the global climate finance landscape, including the potential for overlapping actions and coordination challenges.
SEI brief / This brief examines how the public sector can most effectively incentivise needed investments in climate change-related mitigation in Africa.
Journal article / Nationally determined contributions (NDCs) were key to reaching the Paris Agreement and will be instrumental in implementing it.
SEI brief / Sub-Saharan African countries have identified agriculture as an adaptation priority, and engaging private actors in projects is recognized as essential
Other publication / Different mechanisms for delivering climate finance at the local level, with a focus on case studies in Ethiopia and Kenya
Other publication / Municipal financing could increase debt availability for rooftop solar in India by 12%
SEI working paper / This report analyses concessional international public flows of climate finance to Indian Ocean and African Small Island Developing States
Other publication / Analysis of the performance of the Green Climate Fund, and discussion of whether least developed countries can depend on it
Journal article / As connections between people and places intensify, it seems likely that adaptation responses might shift risks and vulnerability between people and places
Other publication / Determining the amount of climate finance received by each developing country is a difficult task. The Biennial Update Reports should provide information
SEI brief / With slow-onset events like sea-level rise and drought threatening farmers in the Mekong Delta, the search is on for policies that can protect farmers
Other publication / Southeast Asia depends on climate adaptation finance to lessen the impact of a warming world on its people and economies. Yet there are barriers to delivery
Other publication / Not all countries have equal capacity to adapt. It is critical that the Paris Agreement’s capacity building provisions are implemented successfully
SEI brief / Summary of research done by the Climate Finance Group for Latin America and the Caribbean calling for robust climate finance reporting across Latin America
SEI working paper / The Caribbean region’s small island developing states face considerable threats from climate change, and the costs involved exceed their financial capacity.
Other publication / If the goal of the Paris climate agreement is to be met, all financial flows need to shift dramatically and rapidly.
Journal article / This paper aims to assess how climate change adaptation funds have been legitimized – that is, how they have been justified and made acceptable.
SEI working paper / Analysis of climate finance flows to Pacific Island states in 2010–2014 and recent data on flows from multilateral climate funds.
SEI working paper / Challenges and tensions arise in financing energy infrastructure in sub-Saharan Africa. We explore this through case studies from Tanzania and Zambia.
SEI brief / This discussion brief examines four key traits associated with loss and damage in policy discussions
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Tool / Aid Atlas helps users to more easily understand how development funding is being provided, where it is going, and what it’s being used for.
Tool / The NDC Explorer is an interactive visual tool. It provides transparency and comparability data between countries using data from NDCs and INDCS.
Tool / Analyze and compare how climate actions correspond to the Sustainable Development Goals.
Perspective / Climate adaptation requires renewed interest in development activities and transformative changes that fundamentally improve the resilience of our societies.
Project / Stockholm Sustainable Finance Centre (SSFC) aimed to have a transformative impact on sustainable finance in Sweden and beyond.
Perspective / Record figures of global climate finance hide a less impressive reality when looking at specific regions, especially Small Island Developing States.
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