As international climate finance flows increase, transparency is an important tool for building trust between developed and developing country partners. It will also help improve the effectiveness of climate finance.
The European Commission and many Member States actively contributed to a donor initiative for improving reporting methodologies on progress towards the developed countries' joint goal of mobilising USD 100 billion per year by 2020 to support developing countries.
The group of donors developed
The results were presented in the 2015 report published by the OECD and the Climate Policy Initiative at the request of the French and Peruvian presidencies of UN climate conferences.
The EU adopted an enhanced reporting framework on climate finance in 2013. The EU Monitoring Mechanism Regulation requires Member States to submit annual reports on financial support, capacity building and technology transfer activities to developing countries based on the best data available.
At international level, parties of the UN climate convention (UNFCCC) have agreed to strengthen the framework for tracking international climate finance. Parties now report on their climate finance every 2 years.
The EU submitted its first biennial report in January 2014, including information on financial resources and transfer of technology. The next report is due in January 2016.
Finance is also part of the annual climate action progress reports by the EU.
For the international climate regime to function, it is important to provide full transparency both on climate finance flows and on the action financed by these flows.
The EU and its Member States are committed to working with other UNFCCC Parties to advance discussions on the implementation of a robust international framework for the monitoring, reporting and verification of emission reduction activities.