Estimates of incremental investment for and cost of mitigation measures in developing countries

Keeping the global temperature increase below 2°C will require concerted mitigation action by both developed and developing countries. In the UN Framework Convention, the Kyoto Protocol and the Copenhagen Accord, developed countries have an obligation to provide finance for mitigation measures in developing countries. Estimates of incremental investment and incremental costs for mitigation action in developing countries are reviewed. These estimates cover developing countries as a group, individual countries and specific sectors. Many mitigation measures are more capital-intensive but have lower operating costs than the technologies they replace, so the incremental investment exceeds the incremental cost. There is no agreed basis for determining how much international financial support should be provided for mitigation measures in developing countries. Although the amount of international funding needed cannot be determined from the available analyses, it is likely to lie between the estimates of incremental cost and the incremental investment. The few estimates of incremental mitigation costs available suggest that these costs will rise substantially over the next two decades and exceed US$100 billion by 2030. The promises to increase international climate funding significantly over the next decade are encouraging, but it is not yet possible to determine whether the promised funding will be sufficient.