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There is a global consensus confirmed by the 5th Assessment of the Intergovernmental Panel on Climate Change (IPCC) that the temperature rise due to climate change should be restricted to 2ºC if the most dangerous impacts are to be avoided, with the window of opportunity to act closing fast. It is predicted that global greenhouse gas (GHG) emissions would have to decline by 40-70% by 2050 compared to 2010 levels in order to meet this goal.

The Paris Agreement raised the ambition to keep global warming closer to 1.5ºC, thus upping the ante even further. The bulk of the immediate burden for GHG reductions rests on the shoulders of developed countries, but it is also essential that developing countries incorporate climate mitigation into their development plans by pursuing comprehensive low-carbon development strategies.

This briefing explores how climate finance can help to mitigate the effects of climate change. In particular, it argues that climate finance can assist developing countries in implementing priority mitigation actions including renewable energy efficiency programmes, and more sustainable transport.