E. Strengthening the Response
E.3 Climate governance, acting through laws, strategies and institutions, based on national circumstances, supports mitigation by providing frameworks through which diverse actors interact, and a basis for policy development and implementation (medium confidence). Climate governance is most effective when it integrates across multiple policy domains, helps realise synergies and minimise trade-offs, and connects national and sub-national policymaking levels (high confidence). Effective and equitable climate governance builds on engagement with civil society actors, political actors, businesses, youth, labour, media, Indigenous Peoples and local communities (medium confidence).
E.3.3 The extent to which civil society actors, political actors, businesses, youth, labour, media, Indigenous Peoples, and local communities are engaged influences political support for climate change mitigation and eventual policy outcomes. Structural factors of national circumstances and capabilities (e.g., economic and natural endowments, political systems and cultural factors and gender considerations) affect the breadth and depth of climate governance. Mitigation options that align with prevalent ideas, values and beliefs are more easily adopted and implemented. Climate-related litigation, for example by governments, private sector, civil society and individuals, is growing - with a large number of cases in some developed countries, and with a much smaller number in some developing countries - and in some cases, has influenced the outcome and ambition of climate governance. (medium confidence)
E.5 Tracked financial flows fall short of the levels needed to achieve mitigation goals across all sectors and regions. The challenge of closing gaps is largest in developing countries as a whole. Scaling up mitigation financial flows can be supported by clear policy choices and signals from governments and the international community (high confidence). Accelerated international financial cooperation is a critical enabler of low-GHG and just transitions, and can address inequities in access to finance and the costs of, and vulnerability to, the impacts of climate change (high confidence).
E.5.4 Clear signalling by governments and the international community, including a stronger alignment of public sector finance and policy, and higher levels of public sector climate finance, reduces uncertainty and transition risks for the private sector. Depending on national contexts, investors and financial intermediaries, central banks, and financial regulators can support climate action and can shift the systemic underpricing of climate-related risk by increasing awareness, transparency and consideration of climate-related risk, and investment opportunities. Financial flows can also be aligned with funding needs through: greater support for technology development; a continued role for multilateral and national climate funds and development banks; lowering financing costs for underserved groups through entities such as green banks existing in some countries, funds and risk-sharing mechanisms; economic instruments which consider economic and social equity and distributional impacts; gender-responsive and women-empowerment programmes as well as enhanced access to finance for local communities and Indigenous Peoples and small land owners; and greater public-private cooperation. (high confidence)
