Global Climate Finance

Developed countries have pledged to provide USD 100 billion annually to developing countries to support efforts to pursue climate-friendly development and to deal with climate change effects. Although public climate finance from developed countries still falls far short of this goal, climate funding is steadily increasing. Given the magnitude of climate challenges, ensuring that resources mobilized are used efficiently and effectively is essential.

This working paper outlines key features of the global climate finance landscape. It notes that the diverse sources of climate funds, the multitude of priorities, and varied channels for implementation create the potential for overlapping actions and coordination challenges. These challenges exist at both the global and national levels. At the global level, identifying a division of labour among multilateral climate funds remains a concern. National climate finance coordination arenas involve domestic governmental actors and international funders.

The paper provides a foundation for a research project that analyzes the political, economic and organizational determinants of climate finance coordination at different levels of governance.