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Title: Financing the transition from brown to green: how to track country performance towards low carbon, climate-resilient economies
Author:Watson C, Schindler H
Date:December 2017

This paper explores ways of financing the transition from brown, carbon-intensive models of economic development to low-carbon, green economies. Drawing on several stakeholder interviews and an expert workshop, this paper maps the landscape of financing the transition and proposes a concrete set of indicators to measure country progress. Part A recommends that in order to mobilise green finance and to shift away from brown finance, a range of public and private actors have to take action. These actors are those whose day-to-day roles, responsibilities and priorities are not always focused on the implications for and from climate change, but who nevertheless have a key role in financing the transition. Governments, central banks and financial authorities have at their disposal tools from three categories: 1) financial policies and regulations; 2) fiscal policy levers; and 3) public finance. A transition requires applying a combination of tools in each category. Together, these sets of tools support increased private green finance.

Part B proposes nine indicators across these three categories. These indicators can be applied to G20 countries to provide a broad summary of progress in financing the transition.

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