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UNDP, CDDE Offer Guidance on Enhancing Climate Finance in Asia-Pacific

Making Sense of Climate FinanceJanuary 2013: The UN Development Programme (UNDP) and the Capacity Development for Development Effectiveness (CDDE) Facility have published a paper that provides guidance to donors and decision makers on how to organize national financial flows more effectively for climate finance, and mobilize additional public finance from domestic and international sources.

The core message of the report, titled “Making Sense of Climate Finance: Linking Public Finance and National Climate Change Policy in the Asia-Pacific Region,” is the need to evaluate and prioritize climate finance in the context of the national budget process, not on the size of the financing need. Therefore, the report concludes that international finance must be managed to provide complementary support that does not fragment national climate change policy.

The report contains sections on: public instruments and climate change; the linking of policies to public expenditure; and the management of international public finance for responding to climate change.

Specific recommendations include the need to set up: mechanisms to track and make visible climate change expenditures; cross-sector coordination to prevent gaps and overlaps in expenditures; and climate public expenditure and institutional reviews (CPEIRs) to inform changes in budgetary allocations for climate policy.

The CDDE Facility was established in March 2009 to meet Asia-Pacific partner countries demands for peer-to-peer initiatives that help them improve the management of their aid partnerships in pursuit of development effectiveness and poverty reduction. It is suppported by the Asian Development Bank (ADB), the Governments of Japan and the Republic of Korea (MoFAT), and UNDP's Asia-Pacific Regional Centre in Bangkok, Thailand. [Publication: Making Sense of Climate Finance]