Study on Climate Financing and Good Financial Governance

As part of a consulting project on climate finance and good financial governance (GFG), adelphi presented an overview on the nexus between the dynamic field of climate finance and implied challenges for financial governance.

Even though recent international negotiations on climate change in Copenhagen, Cancun, and Durban have consistently failed to meet expectations, industrialized countries have committed to providing significant additional funds for climate financing in developing countries in the coming years. adelphi analyzed the challenges and opportunities for developing countries brought about by these resource flows with respect to financial governance. The report carves out first lessons from selected national climate funds and assesses implications for their future design. Moreover, adelphi analyzed a range of approaches for identifying climate sensitive aspects of public budgets, and evaluated their relevance to German development co-operation. Finally, adelphi discussed the prospects for a transparent and accountable use of climate finance funds and developed ideas of how German development co-operation can address the challenges posed by climate finance and financial governance.