As adverse climate impacts realize, the need for scaled up investments in adaptable and environmentally sound infrastructure in developing countries and economies in transition grows more urgent. New and increasing public fund flows are available for investment, particularly the Green Climate Fund which establishes guiding criteria for climate finance. The 2015 adopted Paris Agreement is a break-through in international mitigation policy covering all countries. It combines combines bottom-up emissions pledges with an international regulatory architecture whereas market mechanisms are reinstated as key instrument A huge amount of work needs to be done in the next years to put the agreement into action.
A major challenge is to identify sufficiently large numbers of feasible projects that are in compliance with risk adjusted international standards. In addition, private investments in climate mitigation and adaptation projects have to be combined with public climate finance to reach high enough levels of overall investments needed to manage climate risks in a relatively short period of time.