OECD/IEA Climate Change Expert Group Papers

This series is designed to make available to a wider readership selected papers on climate change issues that have been prepared for the OECD/IEA Climate Change Expert Group (CCXG). The CCXG (formerly called the Annex I Expert Group) is a group of government delegates from OECD and other industrialised countries. The aim of the group is to promote dialogue and enhance understanding on technical issues in the international climate change negotiations. CCXG papers are developed in consultation with experts from a wide range of developed and developing countries, including those participating in CCXG Global Forums.

The full papers are generally available only in English.

The opinions expressed in these papers are the sole responsibility of the author(s) and do not necessarily reflect the views of the OECD, the IEA or their member countries, or the endorsement of any approach described therein.


Monitoring and Tracking Long-Term Finance to Support Climate Action

The Cancún Agreements formalise a collective commitment by developed countries to provide new and additional funding for action on climate change in developing countries both in the short- and longer-term. This collective financial commitment requires a system to measure, report and verify (MRV) the relevant financial flows across a variety of sources. However, the existing effort to track climate finance lacks transparency, comparability and comprehensiveness.

The paper highlights the relevant information that needs to be tracked in order to build a comprehensive MRV system for climate finance, proposing both improvements to current reporting and tracking systems as well as new reporting approaches for a more robust and inclusive MRV system. The paper suggests tracking information along a multi-dimensional structure. This structure is aspirational, to be achieved and added to over time. Certain elements of it might not be feasible in the near term but could be developed with a targeted effort. For example, while not a priority in the near-term it is important to recognise the growing importance of South-South financial flows to support climate action and to anticipate adding reporting on this in future. Of course such a system must also be built up slowly, allowing reporting countries to build capacity to provide higher quality and more complete information over time.

In particular, the paper outlines two strawman proposals for reporting on climate finance that integrate existing and new UNFCCC vehicles for reporting or recording information, (i.e. national communications and biennial reports, the registry) as well as drawing on other reporting systems. These are: (i) reporting through limited sources; or (ii) reporting through expanded sources, building on broader institutional collaboration and non-party reporting. Both ‘strawman’ proposals foresee an important oversight role from the UNFCCC to serve as recipient of all data, and to co-ordinate the verification and review and/or international consultation and analysis process. Both options advance a more comprehensive system for storing and accessing data on international climate finance and will facilitate comparison and integration of data across sources.


Keywords: investment, adaptation, mitigation, climate change, finance
JEL: F53: International Economics / International Relations, National Security, and International Political Economy / International Agreements and Observance; International Organizations; G15: Financial Economics / General Financial Markets / International Financial Markets; F30: International Economics / International Finance / International Finance: General; H87: Public Economics / Miscellaneous Issues / International Fiscal Issues; International Public Goods; Q54: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Environmental Economics / Climate; Natural Disasters and Their Management; Global Warming; Q56: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Environmental Economics / Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error