Climate change is an existential threat to the planet and there is a demand for urgent and adequate climate finance. Yet, access continues to be perceived as difficult and cumbersome. The Green Climate Fund (the main fund of the UNFCCC) has already committed 10 billion USD and is in the process of approving billions more in projects and funding. Other regional banks and public and private investors are also committing funds at unprecedented levels to tackle the climate crisis.  

There remain significant hurdles that hinder countries, especially those with weak governance structures or less developed financial systems, from effectively accessing climate finance. As a result, many developing nations are advocating for climate funds to be provided more rapidly and affordably, with streamlined pre-project assessments, monitoring, and post-project evaluations. GCF’s Independent Evaluation Unit’s recent report IEU Synthesis on Access in the GCF  underscored several challenges in access to GCF funding, including strategic ambiguity, resulting in blind spots, and limited institutional capabilities. 

With the streamlining of funding timelines and processes, it is increasingly critical to implement proactive measures that help identify and mitigate integrity risks and possible breaches in environmental and social safeguards before actual damage and harm to people and nature and financial loss happen. 

The GCF Independent Integrity Unit has continued to receive an increasing number of cases, ranging from corruption to fraud and misappropriation of funds.  

GCF’s Independent Redress Mechanism has processed numerous complaints of environmental and social harm from projects. Similarly, Grievance Redress Mechanisms of the Accredited Entities of the GCF received over 2,000 grievances and complaints across 162 projects in 2022, a significant increase from over 1,000 complaints and grievances received across 130 projects in 2021. There is a clear need for a well-functioning grievance infrastructure in climate projects. 

To ensure the efficient delivery of climate finance to climate-vulnerable communities around the world, strong accountability and corresponding systems must be in place and implemented effectively.

At this COP29 side event, hosted at the Climate Funds Pavilion, accountability experts will discuss challenges in accessing climate finance, risks of over-simplifying funding processes, and risk management strategies.

Watch the event online: https://cop.greenclimate.fund/