Monitoring Climate Finance in Developing Countries: Initial Good Practice Guidance. Find more at http://bit.ly/12lXW91

1. Improving National Procedures
& Systems for Monitoring
Climate Change Finance: Initial
good Practice Guidance
Dennis Tirpak and Louise Brown

2. The Problem we are Trying to Solve..
Getting the Ledgers to Balance
Donor $€£¥ ≠ Recipient $€£¥
Country Country
Support Receipts

3. Other Reasons for Tracking of Climate
Change Finance
• Facilitate comprehensive national planning and effective
use of domestic and international funds
• Provide data on support received for UNFCCC Biennial
Update Reports
• Provide a comprehensive picture of climate finance at the
international level; thereby facilitating an assessment of
gaps & trends
• Means to verify developed country reports of finance
allocated & delivered and Foster trust with donors
• Facilitate direct access in the international financial
mechanism

4. Current Efforts to Track Finance
for Climate Change
• Bloomberg New Energy Finance
• OECD Development Assistance Committee (DAC)
• UNFCCC National Communications
• Multilateral Development Banks
• World Bank Climate Co-Benefits Tracking
• Fast-Start Finance Reporting
• Other Reporting Systems (ad hoc, domestic, independent, etc.)

5. Approach
• Three workshops were held in Asia, Africa and
Latin America
• Over forty representatives from 20 developing
countries, regional development banks (AfDB and
IADB) and several national organizations
participated
• Support was provided by Environment Canada
and BMU/UNEP Fit for Funds Pogramme

6. Objectives of the Workshops
• Exchange information on the current systems and
procedures in developing countries for storing and
reporting official development assistance (ODA), and, in
particular, climate finance;
• Extract lessons learned, political and technical capacity
constraints, best practices and needs of the current
systems;
• Explore what an ideal system looks like, including
indicators, criteria, scope and institutional
arrangements; and
• Identify the priorities of developing countries and the
support they require to improve their systems and
procedures for reporting climate change finance.

7. Key Monitoring Challenges Identified
by Participants
• Inconsistent definitions and criteria to define climate
change finance;
• Inconsistent markers, indicators and codes to
characterize financial data (e.g., by sector and
activity);
• Insufficient institutional arrangements, including
unclear clear roles and responsibilities;
• Insufficient technical processes and systems to
identify and record climate expenditures;
• Lack of information on climate finance provided to
non-government actors

8. Key Monitoring Challenges
Identified by Participants
• Limited treatment of different types of financial
instruments in existing data systems;
• Limitations on the availability of private financial
data;
• Lack of transparency and predictability on the
part of development partners contributing
climate finance; and
• Limited use of developing country national
systems for reporting by development partners

9. Example of Options for Improving the
Storage of Financial Data
Modification of existing financial
management systems
Creation of a new ODA/loan tracking
system
Advantages Would allow for effective integration
of climate finance with other
elements of financial planning and
monitoring.
Would not require substantive
training and learning costs, as staff
are already familiar with existing
systems
Would allow for better comparison of
data between countries
Disadvantages Technically challenging, costly, and
time consuming to alter existing
systems
Could be met by bureaucratic
resistance depending on the extent
of the modifications needed
Would require new procedures and
training which would also be technically
challenging, time consuming and costly
Would be challenging to coordinate
between various countries should they
choose to design a system together
Would run the risk of being poorly
coordinated with existing systems and
poorly integrated into core financial and
monitoring

10. Development Assistance Data from
Laos (Grants)

11. Options for Improving Data on Finance
Received by NGOs
• Pass regulations that require NGOs to report the
source and amount of finance received
• Develop voluntary ‘memoranda of understanding’
between governments and NGOs that outline how
climate change finance data should be reported. T
• Invite development partners to voluntarily report on
finance provided to NGOs or establish regulations to
require them to report on finance provided to all
ministries and NGOs.
• Establish a requirement that international
development partners input data directly to finance
management systems

12. Initial Good Practice Guidance
Examples of issues Addressed
• How should this guidance be used?
• What is climate change finance?
• What principles should guide the
development of improved systems,
procedures and institutional arrangements
• What should be the legal basis?
• Which financial instruments should be
monitored?

13. Initial Good Practice Guidance
Examples of issues Addressed
• Which sources of climate finance should be
monitored?
• What indicators or markers should be used to
monitor climate finance?
• What institutional arrangements are
necessary to monitor climate finance?
• How should climate finance data be stored?
• How should climate finance data be
reviewed?

14. Other Topics
• Reporting formats
• Capacity building
• South-South learning and developed country
experience
• Pilots
• Reference material

15. For more Information contact:
–Dennis@Tirpak.com
–LBrown@WRI.com