Increasing transparency of international climate finance
As international climate finance flows 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.
EU MRV regime includes annual reporting on climate 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 see transparency in climate finance as key to building trust. In 2013 the EU adopted an enhanced reporting framework on climate finance as part of its broader MRV policy.
The EU Monitoring Mechanism Regulation provides for annual reporting of information on financial support and technology transfer activities to developing countries based on the best data available.
In January 2014 the EU submitted its first biennial report to the UNFCCC, including information on financial resources and transfer of technology.
MRV of developing country actions needed as well
The EU and its Member States are also committed to working with developing country partners to advance discussions on the implementation of a suitable MRV framework for them.
For the international climate regime to function, it is important to provide full transparency both on climate finance flows and on action on the ground. MRV of finance from developed countries needs to be matched by MRV of emissions mitigation actions by developing countries.