Working paper 412 - Private climate finance - Mapping incentives and investment in Sub-

Analyses of private finance for CCD also need to take into account certain identifiable trends that emerge from the global data on climate finance: • The majority (76%) is domestically sourced (originates in the country in which it is used);3 • The vast majority of private flows (62%) is invested in developed countries; and • Of the smaller volume of international flows (North–South), the majority. [...] Discussions of private sector participation in climate finance often focus on the availability of capital from the financial sector for CCD projects, and which often overlooks the investment decisions made within, and availability of financing for, businesses and households which constitute a large, albeit diffuse, portion of the economic activity in many sectors, particularly in Africa. [...] To address i) this limited level of information on private climate finance beyond renewable energy and in less developed countries (including those in Africa) and ii) the importance of domestic and public finance and incentives, we build on an approach developed by (Whitley, 2014) to fill key information gaps about both private and public finance, and the incentives that shape this investment. [...] The balance of this report outlines the findings from the application of this methodology to the energy sector in Uganda24 and the agriculture sector in Zambia.25 In order to understand the replicability of these findings, and scalability for other countries in Africa, we compare these findings through a less in-depth review of the same sectors in Namibia and Tanzania, respectively. [...] Information instruments • Although there has been some improvement in the provision of information for investors in the energy sector through the Uganda Investment Authority (UIA), in the development of energy resource datasets and in the facilitation of project pipelines, there are significant opportunities for additional support, particularly through the development of sector and sub-sector indu.