Climate Finance and Renewable Energy

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24 Questions

Climate finance has long been ________________________ in international climate negotiations

contentious

There are growing calls for ________________________ justice and reparations in climate finance

climate-related debt

Geographers conceive of climate finance more broadly, investigating the ________________________ of development

financialization

The disputes in climate finance are rooted in tensions between high-emitting Northern economies and the many ________________________ world countries

majority

Critics argue that additionality failures are ________________________ in climate finance today

rife

Low-carbon economic development and climate ________________________ infrastructures are becoming standard projects for development finance

adaptation

The climate finance gap is a pressing issue between established powers and ________________________ economies

emerging

The United States and China are often at odds in climate finance negotiations, representing the interests of ________________________ economies

Northern and Southern

Renewable energy development globally uses ______ finance structures, meaning loans tied to specific infrastructure projects.

project

Climate risks are typically broken down into physical risks and ______ risks.

transition

The rise of new ______ instruments like green bonds is one important outcome of the push to grow markets for climate finance.

climate-financial

The rush of financial capital into renewables has meant that favored kinds of project and their developers can get loans increasingly ______.

cheaply

These financing preferences have often excluded ______ projects, as well as cooperative and public ownership forms.

small-scale

Climate finance attracts ______ billion in investment and rising every year.

US $300

Transnational corporations account for a rising share of renewable ______ development and ownership.

project

Here climate risk represents a threat to ______ as usual within the real estate–finance system.

business

Scholars have called out mainstream climate-financial actors' __________ model for how climate action should be resourced:

neoliberal

COP debates over the __________ financing gap to tackle the deeper political economic issues behind these controversies:

climate

These forms of climate finance may also re/inscribe forms of __________, inequality, and exclusion within the geographies in which it is deployed:

racialization

One driven by an imperative to seek partnerships with private finance and grow market-based forms of __________ governance:

climate

The de-risking state stands in particular contrast to state-centric visions for resourcing large-scale __________ action:

climate

These worries proved prescient, critiques and forms of __________, which go beyond:

praxis

Mainstream climate-financial actors promote a model that seeks to restructure urban states to maximize “creditworthiness” through __________, schemes:

debt for nature

The uneven accrual of costs, risks, and benefits embedded within these forms of climate finance is a result of __________ state tendencies to socialize risks and privatize profits:

capitalist

Study Notes

Climate Finance Controversies

  • Climate finance has been a contentious issue in international climate negotiations, with disputes between Northern and rapidly industrializing Southern countries over binding commitments to reduce greenhouse gas emissions.
  • Climate finance has contributed to growing calls for climate-related debt justice and reparations amid rising political economic tensions between established powers and emerging economies.

Conception of Climate Finance

  • Geographers increasingly conceive of climate finance more broadly, investigating the financialization of development and its implications.
  • Climate finance is no longer just about high-profile disputes between countries, but also about the underlying political economic tensions and power dynamics.

Climate Finance Flows

  • Climate finance has attracted around $300 billion in investment annually, a major share of all climate-financial flows counted for COP.
  • Transnational corporations account for a rising share of renewable project development and ownership.

Renewable Energy Development

  • Most renewable energy development globally uses project finance structures, meaning loans tied to specific infrastructure projects like large wind or solar farms.
  • The rush of financial capital into renewables has led to favored kinds of project and their developers getting loans increasingly cheaply.

Climate Risks

  • Climate risks are typically broken down into "physical risks" (e.g., climate-related disasters) and "transition risks" (e.g., stranding of high-emissions assets due to regulatory changes).
  • Climate risks pose a threat to business as usual within the real estate–finance system, which relies upon stable property values.

Climate-Financial Instruments

  • Green bonds are an important outcome of the push to grow markets for climate finance, and may help reduce capital costs for renewable energy projects.
  • New climate-financial instruments can further exacerbate existing inequalities and_power dynamics in the geographies where they are deployed.

Critiques and Alternatives

  • Mainstream climate-financial actors' neoliberal model for climate action has been criticized for promoting private finance and market-based forms of climate governance.
  • Alternative visions for resourcing large-scale climate action prioritize state-centric approaches over private finance and market-based governance.

This quiz covers the investment and financing of climate-related projects, including renewable energy, and the role of corporations and public ownership in climate finance.

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