At the Paris Climate Conference in 2015, 195 countries agreed to limit the global average temperature rise well below 2°C and to pursue efforts to limit the temperature increase to 1.5°C. Moreover, they agreed to make financing flows consistent with a pathway towards low greenhouse gases (GHG) emissions and climate resilient development. Achieving such reductions requires vast investments in among others: renewable energy, energy efficiency and other types of activities, which raises the issue of how such investments are being financed. The topic of the financing of the low carbon transition is thus key and therefore requires adequate monitoring.
In Belgium, the availability of sufficient climate finance is also an important topic because it is a key factor to enable the transition to a low-carbon economy. The Belgian government is particularly interested in opportunities to stimulate private sector financing of low-carbon initiatives. Additionally, a need to develop and build climate finance reporting capacity within the Belgian government has been identified as well as a need for a thorough understanding of the complexity of tracking methodologies and the significant impact of the choice for different tracking options. In this context, Trinomics was commissioned a study by the Belgian federal government to identify the investment streams related to climate change within Belgium. More specifically, investments in climate mitigation, adaptation and services are included that can be either primarily targeting climate goals (climate-specific) or as part of a broader set of goals (climate-related). The key deliverable of this study is the Belgian Climate Finance Diagram which provides an overview of all identified investment streams adding up to a total of EUR 6.4 billion of climate finance within Belgium for the year 2013.