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Beyond loans: instruments to ensure the poor access climate and development finance

Paul Steele, Neha Rai, Isilda Nhantumbo

IIED Briefing, 4 pages

While there is wide-ranging debate about how to mobilise financial resources for developing countries, much more policy attention must be focused on how to get these resources into the hands of poor people who need them most. We highlight concessional loans, risk-sharing instruments, grants and social protection schemes as ways to enable low-income groups to limit risks arising from climate change, access affordable energy and develop sustainable businesses. Governments will need to deploy such tools to ensure their poorest citizens can access the large sums of finance that are set to flow from international agreements on climate change and sustainable development. With this finance, poor people can be one of the most effective groups delivering on the SDGs. A range of instruments may be deployed in combination or sequentially according to their effectiveness at reaching different low-income groups. In some cases this may require aligning incentives to develop a menu of options.

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