International climate financing : from Cancun to a 2degrees stablisation pathway

The UN climate conference in Cancún, in December 2010, has put the international community back on track, to eventually limit the global temperature increase to 2° Celsius or lower. This 2° stabilisation pathway will require a substantial international effort and significant financing. This paper, commissioned by KfW Development Bank, assesses the issues related to international climate financing. It examines potential sources of revenues and analyses which instruments are most compatible with these sources and the climate objectives. Ultimately, the paper provides suggestions for progress in international climate financing after Cancún, towards a 2°C stabilisation pathway.