Climate finance: proposals on governance

Finance is needed to support climate adaptation, mitigation, technology cooperation and capacity building in developing countries.The document emphasises the importance of establishing how climate finance is going to be provided and governed. It states some core principles on how climate finance should be provided and governed; proposes an overall architecture to govern climate finance; proposes a new Climate or Green Fund or Funds; and emphasises the importance of leveraging finance from the private sector, particularly through the expansion of carbon markets.

Key conclusions include:

• There is an emerging consensus on the governance of a Green Fund, the administration of which could be entrusted to an existing international financial institution.
  
• Public finance should leverage private finance flows for the private sector to invest in carbon markets in developing countries.
• There is a need for a reform in the carbon market with improved, large-scaled mechanisms.
• Emphasis must be placed on ensuring co-ordination and co-operation between financing mechanisms
• Ensuring adaptation in the poorest, least developed and vulnerable countries, including small island states is a priority.