Countries monitor climate finance to understand how public, private and international funding has been allocated and spent for mitigation, adaptation and other climate-related initiatives. Monitoring finance allocations and expenditures for climate initiatives (mainly at an activity level), as well as activities that go against national climate goals, can help a country identify sectors or initiatives in need of further investment.  

Currently, some developing countries track where both domestic and international climate finance is going within their national borders, and developed countries primarily track how much money they have provided to their developing country counterparts.