IDEAS home Printed from https://ideas.repec.org/p/oec/envaab/2011-3-en.html
   My bibliography  Save this paper

Monitoring and Tracking Long-Term Finance to Support Climate Action

Author

Listed:
  • Barbara Buchner

    (Climate Policy Initiative)

  • Jessica Brown

    (Overseas Development Institute)

  • Jan Corfee-Morlot

    (OECD)

Abstract

The Cancún Agreements formalise a collective commitment by developed countries to provide new and additional funding for action on climate change in developing countries both in the short- and longer-term. This collective financial commitment requires a system to measure, report and verify (MRV) the relevant financial flows across a variety of sources. However, the existing effort to track climate finance lacks transparency, comparability and comprehensiveness. The paper highlights the relevant information that needs to be tracked in order to build a comprehensive MRV system for climate finance, proposing both improvements to current reporting and tracking systems as well as new reporting approaches for a more robust and inclusive MRV system. The paper suggests tracking information along a multi-dimensional structure. This structure is aspirational, to be achieved and added to over time. Certain elements of it might not be feasible in the near term but could be developed with a targeted effort. For example, while not a priority in the near-term it is important to recognise the growing importance of South-South financial flows to support climate action and to anticipate adding reporting on this in future. Of course such a system must also be built up slowly, allowing reporting countries to build capacity to provide higher quality and more complete information over time. In particular, the paper outlines two strawman proposals for reporting on climate finance that integrate existing and new UNFCCC vehicles for reporting or recording information, (i.e. national communications and biennial reports, the registry) as well as drawing on other reporting systems. These are: (i) reporting through limited sources; or (ii) reporting through expanded sources, building on broader institutional collaboration and non-party reporting. Both ‘strawman’ proposals foresee an important oversight role from the UNFCCC to serve as recipient of all data, and to co-ordinate the verification and review and/or international consultation and analysis process. Both options advance a more comprehensive system for storing and accessing data on international climate finance and will facilitate comparison and integration of data across sources. Les Accords de Cancún officialisent l’engagement collectif des pays développés d’assurer par des ressources nouvelles et additionnelles le financement de l’action nécessaire face au changement climatique dans les pays en développement, tant à court qu’à long terme. Cet engagement financier collectif nécessite un mécanisme qui permette de mesurer, de notifier et de vérifier (MNV) les flux financiers visés en provenance de multiples sources. Or, l’effort en cours pour suivre le financement climatique manque de transparence, de comparabilité et d’exhaustivité. Le document met en évidence les informations qu’il importe de suivre afin d’établir un mécanisme MNV complet pour le financement climatique, proposant tout à la fois des réformes des systèmes de notification et de suivi en vigueur et des méthodes nouvelles de notification pour un mécanisme MNV plus robuste et plus exhaustif. Le document conseille de suivre les informations selon un schéma pluridimensionnel. Ce schéma est un idéal, à réaliser peu à peu. Certains éléments, sans être réalisables à court terme, peuvent progresser au moyen d’un effort ciblé. Par exemple, bien que ce ne soit pas un objectif prioritaire à court terme, il importe de prendre conscience de l’importance croissante des flux financiers Sud-Sud à l’appui de l’action climatique, et de prévoir le développement d’un système de notification en la matière. Naturellement, ce système doit lui aussi se mettre en place progressivement, pour que les pays déclarants puissent se doter des moyens de fournir avec le temps des informations plus précises et plus complètes. En particulier, le document présente, pour l’information sur le financement climatique, deux propositions de départ qui réunissent les instruments existants et nouveaux de la CCNUCC visant la notification ou l’enregistrement des informations (à savoir les communications nationales et les rapports bisannuels, le registre) et qui s’inspirent aussi d’autres systèmes de notification. Il s’agit de présenter des rapports à partir (i) d’un nombre de sources limité ; ou (ii) de sources plus nombreuses, en s’appuyant sur une collaboration institutionnelle élargie et la déclaration par des tiers. Ces deux propositions de départ donnent un important rôle de surveillance à la CCNUCC qui sera destinataire de toutes les données et coordonnera la vérification, ainsi que l’examen ou la consultation et l’analyse internationales. Ces deux options mettent en avant un système plus complet de stockage et de recherche des données sur le financement climatique international, et elles faciliteront la comparaison et l’intégration des données des différentes sources.

Suggested Citation

  • Barbara Buchner & Jessica Brown & Jan Corfee-Morlot, 2011. "Monitoring and Tracking Long-Term Finance to Support Climate Action," OECD/IEA Climate Change Expert Group Papers 2011/3, OECD Publishing.
  • Handle: RePEc:oec:envaab:2011/3-en
    DOI: 10.1787/5k44zcqbbj42-en
    as

    Download full text from publisher

    File URL: https://doi.org/10.1787/5k44zcqbbj42-en
    Download Restriction: no

    File URL: https://libkey.io/10.1787/5k44zcqbbj42-en?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:nam:befdwp:9 is not listed on IDEAS
    2. George H. Ionescu & Elena Jianu & Ioana C. Patrichi & Florin Ghiocel & Lili Țenea & Delia Iancu, 2021. "Assessment of Sustainable Development Goals (SDG) Implementation in Bulgaria and Future Developments," Sustainability, MDPI, vol. 13(21), pages 1-33, October.
    3. Isaac K. Ofori & Francesco Figari & Nathanael Ojong, 2023. "Towards sustainability: The relationship between foreign direct investment, economic freedom and inclusive green growth," Working Papers of the African Governance and Development Institute. 23/023, African Governance and Development Institute..
    4. Victor, David G., 2013. "Foreign Aid for Capacity-Building to Address Climate Change: Insights and Applications," WIDER Working Paper Series 084, World Institute for Development Economic Research (UNU-WIDER).
    5. Olga Kovalchuk, 2012. "Evaluation Mechanisms for Climate Finance," Discussion Paper Series RECAP15 003, RECAP15, European University Viadrina, Frankfurt (Oder).
    6. Ofori, Isaac K. & Figari, Francesco & Ojong, Nathanael, 2023. "Towards sustainability: The relationship between foreign direct investment, economic freedom and inclusive green growth," MPRA Paper 116956, University Library of Munich, Germany.
    7. Martin Stadelmann & Axel Michaelowa & J. Timmons Roberts, 2013. "Difficulties in accounting for private finance in international climate policy," Climate Policy, Taylor & Francis Journals, vol. 13(6), pages 718-737, November.
    8. Yadira Mori-Clement & Stefan Nabernegg & Birgit Bednar-Friedl, 2018. "Can preferential trade agreements enhance renewable electricity generation in emerging economies? A model-based policy analysis for Brazil and the European Union," Graz Economics Papers 2018-19, University of Graz, Department of Economics.
    9. Emilie Bécault & Axel Marx, 2015. "International Climate Finance to developing countries. Taking stock of the variety of bilateral, private and hybrid financing initiatives," BeFinD Working Papers 0109, University of Namur, Department of Economics.
    10. David Victor, 2013. "Foreign Aid for Capacity-Building to Address Climate Change: Insights and Applications," WIDER Working Paper Series wp-2013-084, World Institute for Development Economic Research (UNU-WIDER).
    11. World Bank, 2013. "Accessing International Climate Change Related Finance in Latin America and the Caribbean," World Bank Publications - Reports 16073, The World Bank Group.
    12. Kris Bachus, 2015. "Official climate-related development finance in Belgium: Concepts and methodologies," BeFinD Working Papers 0104, University of Namur, Department of Economics.
    13. Isaac K. Ofori & Francesco Figari & Nathanael Ojong, 2023. "Towards sustainability: The relationship between foreign direct investment, economic freedom and inclusive green growth," Working Papers 23/023, European Xtramile Centre of African Studies (EXCAS).
    14. repec:nam:befdwp:4 is not listed on IDEAS

    More about this item

    Keywords

    adaptation; adaptation; atténuation; changement climatique; climate change; finance; financement; investissement; investment; mitigation;
    All these keywords.

    JEL classification:

    • F30 - International Economics - - International Finance - - - General
    • F53 - International Economics - - International Relations, National Security, and International Political Economy - - - International Agreements and Observance; International Organizations
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • H87 - Public Economics - - Miscellaneous Issues - - - International Fiscal Issues; International Public Goods
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oec:envaab:2011/3-en. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/enoecfr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.