During the United Nations Framework Convention on Climate Change (UNFCCC), Conference of the Parties (COP) in Copenhagen, Denmark in 2009, developed countries promised to provide developing countries with financial aid that would be used to reduce greenhouse emissions and would also help them adapt and cope with the effects of climate change.
Developed countries want to ensure their funds are used efficiently and effectively, and developing countries want to know that committed funds will actually materialize in the promised amount and on time. A climate finance regime that is fully transparent in terms of the scale of resources flowing into countries, how it is channelled, the financial instruments used, how it is spent, and the oversight mechanisms are is critical to building this trust. Developed and developing countries have distinct, but critical roles to play in facilitating the flow of climate finance and ensuring climate funds are used effectively by:
(1) Delivering on their fast start finance pledges;
(2) Providing long-term, predictable finance to developing countries;
(3) Developing and supporting a transparent, inclusive, and robust reporting systems for climate finance; and
(4) Working towards an open, transparent, and inclusive process in designing and operationalizing the Green Climate Fund