Negotiations on additional investment and financial flows to address climate change in developing countries

Abstract

In 2007, the UNFCCC Secretariat prepared a report on "Investment and Financial Flows to Address Climate Change".11 The report covers mitigation and adaptation in various sectors over the period to 2030. The report defines an investment as the initial (capital) cost of a new physical asset with a life of more than one year, such as the capital cost of a gas-fired generating unit or a water supply system. A financial flow is an ongoing expenditure related to climate change mitigation or adaptation that docs not involve physical assets, such as research or health care. These investment and financial flows arc NOT the same as the cost of addressing climate change; changes to the operating costs of investments arc not considered nor arc damages due to climate change estimated.