Political Economy of International Climate Finance

Climate finance is used narrowly to refer to the public resource transfer to the developing from the developed countries (Sercu, 2009). The transfer is in the light of the UN Climate Convection duties of a provision of additional and new funding. In a wider sense, climate finance refers to the financial flows that relate to climate adaptation and mitigation (Haites, 2013). Climate supportive funds are sourced from private, public as well as private-public sectors. The finances can be channelled to the public via various financial and organizational intermediaries, development cooperation agencies, private sectors and non-governmental organisations. Economic climate funds may flow from developed to developed states, developing to developing or even drawn up to developing countries (Case &amp. Segger, 2010).
There exists several initiatives to monitor that track and control the international climate finance flow. Climate Funds Update (CFU) is a joint project of the Heinrich Boll Foundation and the Overseas Development Institute. CFU researchers suggest the need for monitoring climate finance to make the flows more efficient. The researchers, in particular, suggest that climate finance funds can do best if their reporting data is synchronized by consistency reporting of their financial figures. Detailed information concerning the implementation of programmes and projects with time should also be provided. Climate and Development Knowledge Network ensure that there is a developing nations’ benefit as a result of climate finance (Michaelowa, 2012). There exist a relatively large number of cases of initiatives being implemented to help developing countries in the management of the respective response to change in the climate. The control is made possible through policy-relevant analysis and information provision (Case &amp. Segger, 2010).
Overseas Development Institute researchers have tracked the flow of international climate finance. The aim is to aid the effectiveness of climatic finances as well as national delivery of climate finance and also at the sharing platform of knowledge (Saddaiah, 2009). The researchers’ findings suggest that early investments in regional and country centres of financial policy implementation develop a robust climatic change.