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.
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.
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.