FEATURE: Improving coherence and delivery of climate finance
Author: Monique Barbut; UN Chronicle N°4
The chronicle reflects on the type of fund that we need in today’s difficult financial environment and current climate finance landscape. Monique Barbut believes that the GCF could work as a fund of funds that coordinates existing sources of funds, including private sector investments, according to the same rules. The GCF would also have its own resources but namely work to introduce common norms, in line with recommendations for improved aid effectiveness. On the longer term, she supports the creation of a Green Bank in which major existing funds would act as funding windows, and the Board would supervise the overall governance.
Why we recommend this:
This paper is still relevant to discussions under the GCF this year as it raises the question of the role and nature of the GCF in relation to the other existing climate funds, as well as the difficulty to reconcile 1) the need for a global climate fund at a scale that can achieve a paradigm shift, 2) the existing funds and 3) the current financial distress. This paper reflects on the need for a GCF business model that contributes to improving coordinated delivery of climate finance as well as rationalised use of (insufficient) resources. As the discussions on the business model framework will start at the Berlin meeting in March, this paper helps guide readers on the current state of play.