Increasing transparency of international climate finance
As international climate finance flows considerably increase to reach $100 billion a year by 2020, it is crucial that transparency is provided on the fulfilment of Parties' commitments and the outcomes on the ground. Transparency is an important tool for building trust between developed and developing country partners. It will also help to improve the effectiveness of climate finance.
Introducing MRV of finance
In the UN climate change negotiations, Parties have agreed to strengthen the international framework for the measurement, reporting and verification (MRV) of international climate finance. The EU Member States and the European Commission are committed to working with developing country partners to advance discussions on the design of a suitable framework.
Some possible approaches for improving the international MRV rules have been set out in a report for the European Commission.
What the EU wants
For the international climate regime to function, it is important to provide full transparency both on actions on the ground and on climate finance flows. MRV of finance from developed countries must be matched by MRV of emissions mitigation actions by developing countries.
A clear differentiation is needed between the MRV requirements for public financing and those for private financial flows.
- The MRV system for public finance and, when appropriate, private finance should ensure comparability of the information provided, deliver transparent and consistent information on financial flows and in the case of emissions mitigation give a clear idea of the results.
- For public finance, the future MRV regime should build on the existing system of reporting information on finance in national communications. These include detailed information on the support provided for both adaptation and emissions mitigation, and are reviewed by experts.
- As fast start pledges are voluntary, the EU does not see a need for a strong MRV system for fast start finance flows. These will need to be monitored and reported, however. Lessons learned from reporting on fast start finance will be useful for designing the MRV system for longer term support.