Climate Finance

Climate finance covers a broad range of thematic areas. Governance and institutional processes around access to finance are as much a part of climate finance as different technical elements around the quality and quantity of climate finance, including various types and sources of finance.

To date, there is no universally agreed definition of climate finance though the Paris agreement provides some loose guidance on types of finance and recipients. Article 9 of the Paris Agreement states that developed country Parties should lead in mobilizing climate finance from a variety of sources, instruments and channels with special consideration paid to Parties particularly vulnerable to the adverse effects of climate change such as least developed countries and small island developing states. Article 9 also calls for achieving a balance between adaptation and mitigation.

Despite the Paris framework, to date there remain significant gaps in providing climate funds to the most climate vulnerable. Notably, funding for adaptation has lagged significantly behind mitigation with only tiny amounts reaching the neediest countries and local actors at the frontier of climate change.

Though COP26 saw global leaders committing to a shift towards locally led adaptation, the complexity of accessing adaptation finance, involving a range of actors, mechanisms and governance arrangements means that ultimately, local actors on the ground face a multitude of barriers in being empowered to lead climate action.

This theme captures a wide array of issues and perspectives associated with access to climate finance, with the aim of sharing knowledge and experiences for improving access to climate finance for the most vulnerable.