ABOUT THE GUIDEBOOK

The Sharm El Sheikh Guidebook for Just Financing raises the critical question of what stakeholders need to do to translate commitments into implementable projects while capturing opportunities to leverage and catalyze needed finance and investments for climate action.

It sets a clear definition for Just Financing along with 12 corresponding guiding principles that serve as a framework to guide stakeholders to adopt innovative climate finance modalities and instruments that can unlock needed scale financing from public and private capital providers for climate action.

It provides a mapping of climate capital providers based on their access criteria, risk appetite, regional and sectoral focus, ticket size and financing instruments to address the limited access of developing countries to climate funds.

It outlines the roles each stakeholder can play to achieve just financing outcomes. It presents a realistic and implementable blueprint aimed at maximizing the effectiveness and efficiency of the existing climate finance system in the short-run, while rethinking the international architecture in the medium and long-term.

About the Guidebook

The Sharm El Sheikh Guidebook for Just Financing raises the critical question of what stakeholders need to do to translate commitments into implementable projects while capturing opportunities to leverage and catalyze needed finance and investments for climate action.

Brings the idea of Justice to Climate Finance

It sets a clear definition for Just Financing along with 12 corresponding guiding principles that serve as a framework to guide stakeholders to adopt innovative climate finance modalities and instruments that can unlock needed scale financing from public and private capital providers for climate action.

Contributes to bridging the information gap

It provides a mapping of climate capital providers based on their access criteria, risk appetite, regional and sectoral focus, ticket size and financing instruments to address the limited access of developing countries to climate funds.

Sets forth key recommendations and an actionable agenda

It outlines the roles each stakeholder can play to achieve just financing outcomes. It presents a realistic and implementable blueprint aimed at maximizing the effectiveness and efficiency of the existing climate finance system in the short-run, while rethinking the international architecture in the medium and long-term.

KEY HIGHLIGHTS

Just Financing Definition and Principles

The Guidebook defines Just Financing, as “financing that accounts for historical responsibility for climate change while ensuring equitable access to quality and quantity climate financing that supports resilient development pathways leaving no one behind”. It sets forth 12 core principles clustered under three main themes: Country Ownership, Equitable Pathways to Climate Finance and Governance.

  • Recognize, respect, and take concrete action to support developing countries’ Right to Development and Industrialization through equitable pathways.
  • Align global climate mitigation and adaptation targets with national development objectives.
  • Support and fund the creation of enabling environments, and strengthening of technical capacities that are aligned with climate goals.
  • Require global stakeholders to actively consider and take progressive action to address historical disparities and responsibilities to meet climate needs.  
  • Mainstream the concept of Just Financing across all financial stakeholders at national and international levels.
  • Ensure the right to quality and quantity climate finance.
  • Address access, affordability, and resource allocation bias.
  • Promote “Additionality”.
  • Address the loss and damage caused by climate change.
  • Require strong institutional governance mechanisms at the international and national levels. 
  • Require robust transparency and accountability mechanisms. 
  • Is anchored on balanced multi-stakeholder participation and collective agreements that enhance international, regional, and local coordination and commitments.

PARTNERS AND CONTRIBUTORS

QUOTES

STRUCTURE OF THE GUIDEBOOK

The Guidebook covers a range of topics related to, and in service of, the climate finance ecosystem, with a focus on the immediate and unmet climate finance needs of developing countries and emerging economies. It is composed of six chapters, with each covering an area that is key to advancing the climate action agenda

Chapter 1

The Climate Finance Landscape: Prospects and Opportunities

This chapter brings the idea of “justice” to climate finance as it provides a clear definition of Just Financing and the guiding principles as to what counts as just. It gives an overview of the climate finance landscape to identify key areas for improvement to enhance the effectiveness and efficiency of the existing climate finance system. It highlights the main stakeholders in the current financial system and the potential new players that can play a catalytic role in pushing forward a just finance agenda.

Chapter 2

Creating an Enabling Environment for Climate Investment

This chapter provides guidelines for both Governments and all relevant stakeholders on how to complement each other's efforts to create an enabling environment that can facilitate translating climate commitments into investment action – from addressing regulatory frameworks, institutional arrangements, capacity building needs and creating new markets, to setting clear climate objectives and targets and identifying priority climate sectors, that ultimately support the development of a pipeline of investable projects.

Chapter 3

Enhancing the Investability of Climate Projects

With the aim of providing guidance on how to enhance the investability of climate projects, this chapter addresses key barriers to private investment and possible solutions that can help unlock different sources of financing for climate projects. It summarizes available sources of public and private capital for developing economies, illustrating each stakeholder’s risk-return profiles and appetite, in addition to financial instruments. In the end, it outlines scalable, investable models that developing countries can deploy to crowd in private investments.

Chapter 4

Catalysing Private Capital for Climate Action

This chapter introduces innovative financing modalities that can de-risk investments in developing countries, with a special focus on blended finance to scale-up climate investments through the deployment and mobilization of concessional and non-concessional climate finance. Furthermore, the chapter explores other innovative instruments that monetize mitigation and adaptation outcomes, such as carbon and resilience credits, which can improve profitability and catalyze private capital.

Chapter 5

A Governance Structure for Just Climate Finance

The Chapter underscores the importance of establishing a holistic governance system for just climate finance. Through the identification of the main components, key stakeholders in the climate governance scheme, as well as current gaps, the chapter sets forth practical recommendations for strengthening current governance structures to unlock the potential for climate finance. It also identifies key factors for promoting transparent, comprehensive, and comparable financing flows at the international and country levels.

Chapter 6

Mainstreaming Just Climate Finance in Developing Countries: A Focus on Africa

The sixth and final chapter of the guidebook showcases prospects and opportunities for climate finance in Africa, highlighting the continent’s needs and circumstances. It also presents practical recommendations per stakeholder, namely governments, bilateral and multilateral development partners and funding institutions, private investors and philanthropic institutions to advance the climate action agenda in the continent. Finally, the chapter presents a number of successful case studies spanning across different geographic regions and country income levels. They actively address climate-related challenges and propose solutions in both adaptation and mitigation investments, using blended and non-blended instruments/approaches, which could be replicated in developing and emerging countries.

CASE STUDIES

The Guidebook presents a set of successful case studies that provide insight into the different ways that public and private sources of capital can engage in efficient structures for Just Financing outcomes. These case studies span across different geographic region and country income levels. They actively address climate-related challenges and propose solutions in both adaptation and mitigation investments, using blended and non-blended instruments/approaches, which could be replicated in developing and emerging countries.

Kenya (1)
Metro Line 4 prospective Terminal Station (multiple mode of transportation)
Morocco – Copyright CIF 2018
Tajikitan – Photos by EBRD_Chris Booth
Turkey – Photo Credit EBRD. Ybt Enerji Solar Installation, Turkey
Mexico – Copyright CIF 2021
Mocuba Solar, E.Jozine_IFC Mozzambique 2022. 1
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THE POWER OF PARTNERSHIPS

Through a wide and inclusive consultative process that started in September 2021 during the first edition of Egypt – International Cooperation Forum (Egypt – ICF), Egypt’s Ministry of International Cooperation has been leading efforts to engage and consult with more than 100 stakeholders, including; governments, development partners, private sector, commercial and investment banks, philanthropies as well as research centers and think tanks, to define a framework for climate financing that is anchored in an equitable and just proposition.

 
Consultations
 
Days
 
Publications

ARTICLES

November 1, 2022
by Jay Collins

The Fight for Climate Capital

The Just Finance Guidebook is a critical tool for policy makers and private sector executives seeking to understand the broad spectrum of issues around climate finance facing both LICs and…
November 1, 2022
By GFANZ

Statement for the Sharm El-Sheikh Guidebook for Just Financing

Mobilizing private finance to the energy transition in emerging markets and developing economies (EMDEs) is critical to reaching net zero emissions by 2050. The IEA estimates that, by end of…
November 1, 2022
By AFD

The Finance in Common Coalition

The Finance in Common (FiCS) coalition, launched in 2020, is a unique global go-to platform for all +500 public development banks (PDBs) across the world. Representing collectively more than 23…
November 1, 2022
By Akinwumi A. Adesina

Climate Change: The largest CO2 emitters must bear their fair share of the cost

Africa is one of the smallest emitters of greenhouse gasses on the planet. Yet our continent continues to bear the brunt of the impacts of climate change.  Through the use…

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After our return to the dead city I passed several days in comparative idleness. On the day following our return all the warriors had ridden forth early in the morning and had not returned until just before darkness fell. As I later learned, they had been to the subterranean vaults in which the eggs were kept.

GET SOME HELP.

At last some four or five of us were summoned to our meal in an adjoining room. It was cold as Iceland said he couldn’t afford it. Nothing but two dismal tallow candles, each in a winding sheet.

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JUST GOOD DIRECTIONS.

By hints, I asked him whether he did not propose going back, and having a coronation; since he might now consider his father dead and gone. So I decided to went there in that exact moment. Power to the people.
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