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Financing models for climate-friendly technologies often focus on the role of international public funding in developing countries. Recent analysis however finds that Official Development Assistance (ODA) has not been catalytic in leveraging private investment, and may even crowd out private investors.

This article makes the case for ODA as a powerful catalyst when applied to public sector reforms. It argues that a financing for development framework in 2015 must promote a long-term vision and effective, accountable institutions, as well as the use of public funds to leverage private investment, while recognising the role of complementary policies.