Emerging markets and developing economies need $2.4 trillion a year to deal with the effects of climate change yet current mechanisms provide just 20% of this – and only a quarter of those committed funds actually reach projects on the ground.
A significant proportion of funds are untraceable, leaving room for greenwashing and capture, creating high levels of distrust in the climate finance system. Implementing the recommendations would mobilise more international capital, channeling it towards the emerging markets and developing economies.
The World Bank Global Partnership for Social Accountability, The Transparency and Accountability Initiative (TAI) and Systemiq’s Blended Finance Taskforce, have proposed Green Accountability practices that would give domestic institutions, local communities and civil society groups a central role in climate finance.
