The Netherlands Ministry of Foreign Affairs has commissioned a pilot study to review its climate finance programmes on the ability to mobilise private climate finance. In close collaboration with a team of policy officers from the Ministry, Trinomics developed a methodology and performed a trial calculation of mobilised private climate finance by Dutch public interventions in 2012, as well as a tentative estimate of mobilisation for the 2015 budget. The report “PILOT – Tracking Mobilised Private Climate Finance” summarises the methodological choices that have been made and the results of this first attempt to track private climate finance mobilised by The Netherlands.
Key methodological choices include:
- We needed two formulas: one for calculating mobilised finance by the annual Ministry’s budget and one for mobilised finance by Development Finance Institutions (DFIs);
- Climate finance is measured most accurately at the level of disbursements to climate activities;
- Indirectly mobilised private climate finance cannot be measured;
- Developing countries are also able to mobilise private finance by their public interventions.
The pilot is a contribution to the international effort to enhance transparency of mobilised private financial flows for climate action in developing countries. The report was presented at the OECD Research Collaborative on tracking private climate finance in Paris, and is a contribution to Work Stream 3: ‘Pilot measurements and ground-testing of methodologies’.
The information and views set out in this study are those of the authors at Trinomics and do not reflect the official opinion of the Ministry of Foreign Affairs of the Netherlands.