Improving the Effectiveness of Climate Financing

Under the UN Framework Convention on Climate Change (UNFCCC), developed countries have committed to mobilize $100 billion to support developing country efforts to reduce their greenhouse gas emissions and adapt to a changing climate. This new and additional climate financing, together with technology and capacity-building support, will be made available by 2020.

Tracking these funds and ensuring that they are delivered effectively is a huge undertaking. Developed countries report their climate finance contributions in periodic national communications submitted to the UNFCCC. However, because countries use multiple methods for reporting and often provide insufficient information, the data gathered are of limited use.

WRI was one of the first organizations to emphasize the importance of transparency of climate finance as part of any new international climate agreement. In the lead up to the UNFCCC conference in Cancun, held in December 2010, our climate team assessed existing finance reporting systems, provided specific guidelines for improvement, and put forward a common reporting format. The team then helped mobilize coalitions to secure support. The result was a mandate at Cancun calling for revised and enhanced reporting guidelines. If fully implemented, these will help donors and recipients better assess and understand the flow and effectiveness of climate finance, and ensure its alignment with other development priorities.

WRI remains active in the UNFCCC process because we believe all nations must act to reduce their greenhouse gas emissions if we are to contain rising temperatures within the limits to which humanity can adapt. Our work on climate finance and in other key policy areas is making a difference in the international climate negotiations.