Castan Broto, V; (2018) Natural Gas and Climate Finance. Climate Policy , 18 (2) pp. 170-183. 10.1080/14693062.2016.1264357.

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Abstract

Should energy projects to extend the use of natural gas be considered for funding under public climate finance commitments? This article provides an overview of evidence for and against climate finance for natural gas projects. The argument focuses on a case study, the UK’s International Climate Fund (ICF). This synthesis concludes that gas-related projects will rarely be eligible for funding under public climate finance, save a few exceptions in which they provide energy access to households directly. Although gas power plants have generally lower emissions than those which use other fossil fuels such as coal, their impact will depend on the material constraints to calculate emissions reductions, the context of implementation, and the political economy of the target country. Three case studies demonstrate that energy access projects need to be understood as providing a whole range of sustainable benefits, from improving local health to reducing emissions. Overall, gas-related projects are complex interventions that require context-specific knowledge of both the effects of technology and the possible business models that can work in context.

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