There is an increasing realization that (1) the way in which low- and middle-income countries (LMICs) develop over the next decade has outsized influence over how and whether global climate targets can be achieved and (2) investment is not flowing to these countries at the type or level needed to demonstrate and scale low-carbon development strategies. The growth and continued reliance on fossil fuel–intensive development in just 15 emerging economies—home to nearly one-fifth of the global population—may drive an emissions wave over the next two decades akin to what China produced during the last two.

This paper “Climate Finance for Just Transitions: Building Low-Carbon Development Pathways in an Age of US-China Rivalry” by the Nicholas Institute for Energy, Environment & Sustainability investigates challenges throughout the international climate finance landscape and recommends pathways for how investments into low- and middle-income countries (LMICs) can more effectively drive low-carbon development. 

Read the complete policy brief here