Why systemic approach to climate finance matters? The policy paper prepared by the Wise Europa, Institute for Climate Economics and NewClimate Institute argues that successful transition in line with Paris Agreement requires robust analytical framework and evidence base to enable large-scale redirection of existing financial flows and mobilisation of new funds towards low-emission measures, such as roll-out of electromobility or improvements of energy efficiency of buildings require.
The paper highlights how tracking climate finance can play an instrumental role in the policymaking process, by providing quantitative estimates and building an evidence base to support:
- assessment of the efficiency of policies and financial flows they govern;
- identification of solutions for reducing the gap between current financial structures and the needs resulting from envisioned national low-emission transition paths;
- development of strategies and plans taking into account all relevant stakeholders and the financial flows mobilized;
- comparison of the results year on year and with results of similar exercises carried out in other countries.
The paper addresses the existing knowledge gap in the current public debate in Poland regarding the systemic assessment of financing low-emission transition on the national level. It examines the examples and best practices of finance landscape methodology implementation in several European countries. Knowledge exchange in this area can be beneficial for stakeholders in Poland and other countries which intend to improve assessment and design of financial frameworks supporting the climate-friendly transition. In line with the recommendations outlined in the publication, Poland and other European countries should conduct the systemic analysis of the flows financing transition to improve management of the transition process both in the public and private sectors.