The global climate finance architecture is complex: finance is channeled through multilateral funds – such as the Global Environment Facility and the Climate Investment Funds – as well as increasingly through bilateral channels. In addition, a growing number of recipient countries have set up national climate change funds that receive funding from multiple developed countries in an effort to coordinate and align donor interests with national priorities.
There is generally much more transparency about the status of implementation of multilateral climate finance initiatives than of bilateral climate finance initiatives. The proliferation of climate finance mechanisms increases the challenges of coordinating and accessing finance.
The architecture of the funds