Finance is a necessary part of reaching our climate goals. The Paris Agreement recognizes that we need to transform our entire financial system to be consistent with a low-carbon, climate-resilient economy. Moreover, developing countries require substantial investment to enhance and accelerate their climate action, as re-established with the 2025 new collective quantified goal for climate finance agreed to at COP29 in Baku the year before. However, the necessary finance — and the architecture to enable it — is not yet in place.

We encourage ambitious and equitable financial commitments, their effective delivery, and strong finance policies and governance elements in the UN Framework Convention on Climate Change (UNFCCC) negotiations and a small set of strategically important institutions. We rely on our deep knowledge of these institutions, the UNFCCC finance negotiations and the climate finance architecture; on our convening power; and on our in-house sectoral expertis to produce timely research that inform key decisions.

UNFCCC Finance Negotiations

The UNFCCC plays a pivotal role in setting rules and norms for global climate action, including on finance. One of the overall goals of the Paris Agreement, which was created under the UNFCCC, is to align all financial flows towards low-emission and climate-resilient development.

The Finance Center, as part of WRI's Climate, Economics and Finance program, conducts research and engages UNFCCC negotiators to:

  • Improve accountability and transparency through monitoring and reporting of climate finance provided and received.
  • Track progress towards climate finance goals, including the New Collective Quantified Goal, and achieving a balance in public funding for adaptation and mitigation.
  • Ensure that climate funds are receiving adequate guidance to improve their coordination and effectiveness.
  • Advance finance for adaptation.
  • Assess progress in aligning all finance flows with the goals of the Paris Agreement.

Specialized Climate Funds

Specialized climate funds provide vital public resources, usually on concessional terms, for climate change adaptation and mitigation. The resources in these funds are limited, so it is essential that they be directed toward activities with the greatest impact. We have worked with many of the climate funds, such as the Adaptation Fund (AF), the Least Developed Countries Fund (LDCF), the Loss and Damage Fund, and the Green Climate Fund (GCF). 

Access to Climate Finance

Climate finance must be accessible. We have worked on ways to make the Green Climate Fund’s direct access mechanism more effective. We have partnered with Ministries of Finance to enhance capacity for climate finance. We also collaborate with civil society to understand how to make climate finance accessible, transparent and accountable.  

Photo Credit: UNclimatechange/Flickr.