Experience in managing climate finance – donor perspectives Session 2b Experience in managing climate finance – donor perspectives

Climate finance – what is it and where does it come from? External international public New and additional? No conditionalities? Contribute to effective development outcomes? Access? Pre-conditions for successful use of country systems Domestic public budget < - > policies Policy reforms and alignment (e.g. ff subsidy reforms) Greening tax policies - raise public revenues Incentives Private climate finance - domestic and foreign Country policies will incentivise new and shift existing flows Domestic (from household expenditure choices to onging business investment) Foreign e.g. FDI

Key take-aways National climate policies and priorities in development context as a pre-condition for use of country systems Climate finance (external) to support collective goal of the UNFCCC Need to shift domestic public and private finance to support climate action External international public finance as an essential lever for change Harnessing private resources key to transformation National policy reforms essential part of incentivising private spending