At the 18th Conference of the Parties to the United Nations Framework Convention on Climate Change (UNFCCC), the parties agreed to a standard format for developed countries to follow when reporting on the climate finance they provide to developing countries.
Developed countries will use these formats for the first time when they submit their Biennial Reports to the UNFCCC in early 2014. Later in 2014, developing countries are expected to submit Biennial Update Reports showing the financial support that they have received. From initial attempts to measure and report climate finance by developed and developing countries, it is already apparent that information on finance provided is unlikely to match information on finance received.
Aside from the reporting requirements of the UNFCCC, better financial data can help decision makers in developing countries identify gaps, improve coordination and management, and raise funds to mitigate and adapt to climate change. Better climate finance information can also enable countries to draw lessons from the use of different financial instruments and develop strategies and policies that aim to expand finance for climate change. Improved data will allow the information reported by developed countries to be cross-checked, thus promoting transparency, completeness, and accuracy. Finally, it can contribute to a more comprehensive picture of climate financial flows in relation to development assistance at the national and international levels.
This working paper reports on three workshops in Asia, Africa, and Latin America, in which participants discussed some of the steps that developing countries and their international partners can take toward monitoring and tracking climate finance more effectively. More than 40 representatives from 20 developing countries, regional development banks, and national organizations attended the three workshops. Participants shared information on the limits of existing legislation and mandates, national planning and approval processes, financial management systems, efforts to coordinate among ministries and development partners, and many other unique challenges faced by the participating countries. WRI obtained additional information via a questionnaire, follow-up correspondence, and interviews with representatives of the countries.