CPI has developed the Brazil Climate Finance Reform Compass to build consensus and coordinate action among government, private sector, and civil society actors on the reforms needed to strengthen Brazil’s climate finance ecosystem. Based on the principles of the COP28 UAE Global Climate Finance Framework, the Brazil Compass tracks 24 reform topics across 8 themes aligned with the country’s climate and development priorities.
These themes are used to organize and promote consistency across the individual reform topics included in the Compass.
To ensure an equitable global climate transition, developed countries need to deliver on their goal of mobilizing $100bn in climate finance for emerging markets and developing economies. In addition to increasing mitigation finance, this includes doubling adaptation finance and operationalization of arrangements for responding to loss and damage.
Explore ThemeFiscal authorities around the world must prepare for more frequent and severe climate-related shocks, as well as for large financing needs. Reform topics in this theme are intended make sovereign balance sheets more resilient and robust to achieve climate goals.
Explore ThemeEstablishing the foundations of climate-smart growth in some areas and sectors may not consistently generate the returns required by private investors. Concessional finance, including guarantees and other de-risking mechanisms, as well as emissions pricing and taxation, can help bridge this gap.
Explore ThemeWhile the global climate transition presents significant opportunities for resilient economic growth, we must take care to ensure that vulnerable populations are not left behind. In developing countries, this may include transferring knowledge, skills, and technology at scale, and will depend on strong policy frameworks and adaptation strategies.
Explore ThemeCountry-owned investment platforms are an essential starting point for aligning stakeholders and building investment pipelines across sectors. To establish such platforms, countries must commit to ambitious but achievable transition pathways that are in line with their circumstances.
Explore ThemeA significant portion of total climate finance needs will come from domestic savings, including in emerging markets and developing economies. Key steps necessary to build and mobilize domestic savings include strong macroeconomic policies and financial-sector development.
Explore ThemeThe majority of financing for the climate transition will come from the private sector, but in many cases, private actors will need guidance, de-risking, and appropriate incentives from the global public sector to deliver at the necessary speed and scale. In particular, catalytic financial and policy mechanisms can help reduce the cost of capital where it is currently too high to achieve climate results.
Explore ThemeCarbon markets remain an essential component of the climate finance architecture, but unlocking their potential requires transparency and high-integrity standards across the value chain. At the domestic and international levels, policies to achieve real emissions reductions, in line with country circumstances, can help build supply and demand for carbon credits.
Explore ThemeMDBs are central actors in the international financial architecture and have begun work on a reform agenda to respond to the scale of the climate challenge. MDBs need to work as a cohesive system to support country-led climate strategies, including by streamlining access and scaling innovative risk-sharing mechanisms.
Explore ThemeTo ensure an equitable global climate transition, developed countries need to deliver on their goal of mobilizing $100bn in climate finance for emerging markets and developing economies. In addition to increasing mitigation finance, this includes doubling adaptation finance and operationalization of arrangements for responding to loss and damage.
Explore ThemeFiscal authorities around the world must prepare for more frequent and severe climate-related shocks, as well as for large financing needs. Reform topics in this theme are intended make sovereign balance sheets more resilient and robust to achieve climate goals.
Explore ThemeEstablishing the foundations of climate-smart growth in some areas and sectors may not consistently generate the returns required by private investors. Concessional finance, including guarantees and other de-risking mechanisms, as well as emissions pricing and taxation, can help bridge this gap.
Explore ThemeWhile the global climate transition presents significant opportunities for resilient economic growth, we must take care to ensure that vulnerable populations are not left behind. In developing countries, this may include transferring knowledge, skills, and technology at scale, and will depend on strong policy frameworks and adaptation strategies.
Explore ThemeCountry-owned investment platforms are an essential starting point for aligning stakeholders and building investment pipelines across sectors. To establish such platforms, countries must commit to ambitious but achievable transition pathways that are in line with their circumstances.
Explore ThemeA significant portion of total climate finance needs will come from domestic savings, including in emerging markets and developing economies. Key steps necessary to build and mobilize domestic savings include strong macroeconomic policies and financial-sector development.
Explore ThemeThe majority of financing for the climate transition will come from the private sector, but in many cases, private actors will need guidance, de-risking, and appropriate incentives from the global public sector to deliver at the necessary speed and scale. In particular, catalytic financial and policy mechanisms can help reduce the cost of capital where it is currently too high to achieve climate results.
Explore ThemeCarbon markets remain an essential component of the climate finance architecture, but unlocking their potential requires transparency and high-integrity standards across the value chain. At the domestic and international levels, policies to achieve real emissions reductions, in line with country circumstances, can help build supply and demand for carbon credits.
Explore ThemeMDBs are central actors in the international financial architecture and have begun work on a reform agenda to respond to the scale of the climate challenge. MDBs need to work as a cohesive system to support country-led climate strategies, including by streamlining access and scaling innovative risk-sharing mechanisms.
Explore ThemeModerate Progress
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These events are identified as points where global climate priorities will be established and, are mapped to our key milestones.
Bonn
Hamburg Germany
Keep track of key climate milestones based on our Compass themes, mapped to global meetings and events.
The Bonn discussions should prioritize operational coherence across the WIM, the FRLD, and the Santiago Network,and how the forthcoming State of Loss and Damage Report and BTR guidance will inform funding decisions and technical support.
Parties should discuss and address how the projected 12% emissions reduction by 2035 can be strengthened to avoid overshooting 1.5°C, especially through enhanced ambition and support from developed countries.
The Bonn agenda should prioritize improving the effectiveness and accessibility of vertical funds, including streamlined approval processes, programmatic approaches, and stronger links with the Global Implementation Accelerator and Belém Mission to 1.5°C.
The Bonn negotiations should advance convergence on the structure and components of the NCQG, including sub-targets for mitigation, adaptation, and loss and damage, as well as clarity on sources, instruments, and transparency of delivery. Parties should also address how the NCQG links to NDC implementation and national planning processes.