European Development Finance Institutions (EDFI) and private sector combat climate change in the developing world

Climate change is the most far-reaching challenge the world faces in coming decades. Estimates of the costs of mitigating climate change and adapting to it vary, but they all indicate massive need of resources. The International Energy Agency (IEA) has calculated the investments needed to keep average global temperature increase below 2° C to amount to annual USD 590 billion for OECD countries and USD 769 billion for non-OECD countries by 2035. The biggest portion of the new money should go to transport, building and energy sectors. In addition, a marked change in the policy environment should take place to enable and encourage clean investments.