As international climate finance flows increase, transparency is an important tool for building trust between developed and developing country partners. It also helps improve the effectiveness of climate finance.
The European Commission and many Member States actively contribute to initiatives improving reporting methodologies and data availability on financial support to developing countries.
Such initiatives include the OECD Development Assistance Committee, Technical Working Group, OECD Research Collaborative on Tracking Finance for Climate Action and International Aid Transparency Initiative.
This is important to track progress towards the developed countries' joint goal of mobilising USD 100 billion per year by 2020.
The current EU reporting framework on climate finance is based on the 2013 EU Monitoring Mechanism Regulation.
It 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.
From 2021, the reporting will be governed by the EU Governance Regulation adopted in 2018.
Finance is also part of the annual climate action progress reports by the EU.
At international level, the Parties to the UN climate convention (UNFCCC) report their financial support to developing countries every 2 years.
The EU submitted its Fourth biennial report in December 2019, including information on financial resources and transfer of technology.