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Reimagining the climate finance system with digital technology

Sam Greene, Marek Soanes, Anna Walnycki

IIED Briefing, 4 pages

Local communities and enterprises must be at the heart of just responses to reducing poverty, conserving and restoring nature, and avoiding catastrophic climate change. However, local actors are inadequately supported to shape responses to this triple challenge, as development actors face difficulties delivering finance to the local level. Innovations in digital technology could help channel more funds directly to the people and places that need it most, as well as having the potential to disrupt prevailing power dynamics for fairer resource governance. But without careful consideration, innovations could entrench existing inequalities and create unjust and ineffective development solutions. This briefing considers the opportunities and risks for tech developers and development contributors of applying digital technologies to support a reimagined climate finance system — one that gets money where it matters — and suggests a framework to support good practice.

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IIED is researching the benefits and challenges of devolving development and climate finance to the local level, and is helping to build local-level capacity to access and manage resources.

More at www.iied.org:
Money where it matters: local finance to implement the Sustainable Development Goals and Paris Agreement

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