Environmental finance for pro-poor development: analyzing the role of carbon finance

In the backdrop of an intensified debate on climate change and a wider consensus on finding action oriented solutions, the emphasis on carbon markets in any post-2012 climate policy agreement has become vital. Though the current economic downturn and absence of clear policy signals have raised concerns over the stability of carbon markets, an argument on the ‘failure’ of these markets to deliver
sustainable development, has continued to linger. This report attempts to highlight the need for linking pro-poor energy interventions with carbon markets by involving environmental, financial and institutional mechanisms.