Paris Rulebook: Projected Finance Information
Navigating the Paris Agreement Rulebook:
Projected Finance Information
The Paris Agreement requires developed countries to communicate information on the climate finance they will provide and mobilize. Other countries providing support are also encouraged to provide this information. Such projected information on future financial support is important to developing countries as it enables better planning and implementation of climate action.
Key Rulebook Decisions from COP24
Rulebook negotiations on projected finance during COP24 answered two key questions: what information countries should communicate, and how the information will be considered once communicated.
The list of information to be communicated includes:
- The projected amount of finance to be provided, including the amount that is new and additional;
- How finance will be programmed, including the channels (bilateral, multilateral funds, development banks) and financial instruments (grants, loans or other instruments) to be used;
- Contributors’ policies and priorities, such as whether they plan to provide support for certain regions or sectors, the types of support to be provided (mitigation, adaptation, technology transfer, capacity-building), how they aim to ensure balance between mitigation and adaptation and take account of the needs of developing countries, among others;
- Contributors’ domestic processes, including national circumstances and limitations to their ability to estimate future financial support (such as their budgetary processes), methodologies and assumptions used in projections, and past challenges and lessons learned; and
- How the finance will support the Paris Agreement’s long-term goals, integrate climate considerations and build lasting capacity in support of sustainable development.
Countries will begin communicating this information in 2020 and every two years thereafter. All communications will be made available online and the UNFCCC will prepare a compilation and synthesis report to inform biennial in-person workshops, and summary reports of these workshops will be prepared. Finally, countries will discuss climate finance at a biennial high-level ministerial dialogue starting in 2021, informed by the workshop summary reports and countries’ biennial communications.This timeline illustrates how the projected finance information communicated under the Paris Agreement fits into the rest of the climate finance landscape.
Remaining Negotiating Mandates
Countries decided to consider updating the types of information to be provided in 2023 based on their experience and lessons learned.