the effectiveness of climate change finance is an issue of urgency for
both the climate change and development communities, focused on finding
the best ways to use relatively small amounts of largely public finance
to have the greatest possible impact in enabling climate compatible
development. Demonstrating the effectiveness of spending on climate
change is particularly important in a time of restricted public budgets
and competing demands on donor governments. It is also crucial that
lessons on effectiveness are taken into account in operationalising the
Green Climate Fund.
The Overseas Development
Institute (ODI) is analysing the effectiveness of major multilateral
climate funds, using a common framework. This page compiles our work in
Reports on the effectiveness of climate change finance
Climate Finance: is it making difference? A review of the effectiveness of multilateral climate funds
International efforts to tackle climate change are at a critical juncture. At the end of 2015 governments will gather at the Paris climate summit to frame a new international agreement aimed at preventing ‘dangerous climate change’. Achieving that goal requires a high level of ambition backed by practical policy commitments. Finance has a pivotal role to play in supporting developing countries to reduce emissions, decarbonise their economies, and adapt to the impacts of climate change. Governments across the world’s poorest countries see financial commitments as key to a global deal in 2015 that can deliver meaningful climate action.
Our new report, for the first time, analyses a decade of contributions and spending to nine major international and two national funds set-up to tackle climate change.
The underlying dataset used for the quantitative analysis of these funds is available here.
|The effectiveness of international climate finance|
This paper considers the context of delivering climate finance and
presents a guiding framework to assess the effectiveness of
international climate funds.
The framework identifies ten key and interlinked dimensions (above) that
are central to understanding the effectiveness of spending and outcomes
of dedicated public finance initiatives that have been established to
help countries respond to climate change.
| ||Understanding the effectiveness of climate funds: synthesis note|
This note synthesises the key messages from ODI's series of reviews of
the effectiveness of climate funds, listed below. Our hope is that it
provides a basis for a more informed debate about the implications of
different approaches to delivering climate finance. Over the coming
months, we will assess a number of other international funds, and
distill lessons from more than a decade of effort to deliver climate
finance for efforts to support action on climate change.
|The effectiveness of climate finance: a review of the Adaptation Fund|
Five years after its establishment, and with the formal financial
architecture of the UNFCCC under renegotiation, the moment is right to
take stock of the operations and achievements of the Adaptation Fund.
This paper reflects on the effectiveness of the Adaptation Fund with
consideration for the processes by which it spends money, and the likely
outcomes of the funding that has been delivered.
| ||The effectiveness of climate finance: a review of the Pilot Program for Pilot Resilience|
The PPCR has a focus on mainstreaming climate adaptation into national level plans, poverty alleviation strategies and sustainability goals.
It has been a game changer for adaptation finance in many ways. Here we
reflect on its achievements as well as on areas where progress remains
to be made, for instance in deepening national ownership of PPCR
|The effectiveness of climate finance: a review of the Amazon Fund|
This working paper is the second in a series of studies of the
effectiveness of dedicated climate funds. This paper reviews the Amazon
Fund in Brazil.
Four years after the operationalisation of the fund, and with the
emergence of a portfolio of supported projects, it is useful to reflect
on its achievements in practice.
| ||The effectiveness of climate finance: a review of the Clean Technology Fund |
The experience of the CTF offers important insights into what it takes
to use diverse financial instruments at scale to support developing
countries to respond to climate change. Its experience reinforces the
importance of country context for programmes, and of due attention to
issues of institutional capacity and preparedness.
| The effectiveness of climate finance: a review of the Scaling-up Renewable Energy in Low Income Countries Program|
The SREP was designed to address a gap in the international climate
finance architecture by ensuring that finance is directed to assist low
income countries in adopting low carbon energy technologies and using
renewable energy to improve energy access. Here we reflect on its early
efforts towards this goal.
| ||The effectiveness of climate finance: a review of the Global Environment Facility|
The GEF has grappled with many of the questions that confront the
international community as it confronts the question of how to design
and operate effective international climate funds. It is timely to take
stock of its evolving priorities and areas of focus.
|The effectiveness of climate finance: a review of the Indonesia Climate Change Trust Fund|
The Indonesia Climate Change Trust Fund (ICCTF) is the first national
trust fund to seek funding from multiple donors to finance climate
change policies and programmes.
This review seeks to understand the context and evolution of the ICCTF
in order to offer insights into the practical realities of establishing
national climate change funds. It finds that, while the ICCTF provides
an innovative model for countries around the world looking to access
international support for their climate change response strategies
through nationally driven institutions, its operationalisation has been
slow to date. The fund's current capitalisation of US$ 11.4 million
makes it a relatively small source of finance in a country that accesses
hundreds of millions of dollars of concessional donor support for
climate related purposes.
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