Climate Finance by Multinational Development Banks - with Special Attention to Europe

Abstract

The paper aims at highlighting the importance of climate protection in the world and in Europe due to climate change, as well as the role of multilateral development banks in climate finance. The topic has a current relevance as in 2017 President Donald Trump gave a notice to quit the Paris Climate Agreement accepted by all United Nations (UN) member states, amongst them by the members of the European Union (EU). The move of the United States (US) President was a shocking surprise worldwide and provoked heavy reactions – including the US. The paper gives an overview of the relationship between climate change, climate protection and climate finance. It sees climate change a threatening reality of today, affecting Europe as well. It considers climate protection necessary not only on country but also on regional and global level. Besides regulation and voluntary pledges, it attributes a crucial role to climate finance focusing on huge, long-term, high risk investments and projects to mitigate the effects and adapt to climate change. It mentions its sources, major directions and institutions, amongst them the multilateral development banks. It compares them with special attention to Europe exploring similarities and differences how climate finance is reflected in their policy, what resources they mobilize, what kind of projects they finance, what results they have achieved, what their plans are in this area and what reactions their activity provoke. Results show that multilateral development banks play a key role in climate finance. Due to differences in geographic, historic and economic circumstances and exposure to climate change they act on it differently. The paper helps to better understand the links between climate change, climate protection and climate finance and the role of the multilateral development banks in it in a comparative perspective