Much as the Incredible Hulk, Thor and Black Widow come together to join their super powers in the fight for good – the Standing Committee on Finance (SCF), SBSTA and SBI are joining forces to discuss methodologies to improve the reporting of climate finance. The evil they battle is a lack of transparency leading to problems such as double counting, miscalculations (or outright exaggeration) and little opportunity to gauge the impact of the resources received.
To unlock their full superhero potential ECO recommends:
Defining common criteria. It’s essential to know what climate finance actually is and ensure we exclude activities that have negative externalities.
Providing enough and clear information. Don’t be afraid, superheroes, break it down. Update the information at least every year and ensure that it is public and accessible.
Coordinating with other countries and financial entities. Avoid duplication of funding and listen to — and meet the needs of — recipient countries.
Encouraging participation of stakeholders. After all, what are superheroes without an engaged audience?
Recipient countries – you also have a role to play here. Your superhero efforts to measure climate finance flows will help close the gap between what you have and what you need. A good idea for recipient countries would be to systematise the information about the climate finance received and coordinate with national and sub-national entities to improve communication and to avoid duplication of projects.
The hidden superpowers of a transparent, accountable and participatory mechanism can track climate finance, increase trust among countries, improve decision making processes and identify financial gaps to improve the leverage among public, private, innovative and international finance. Finally, an MRV system should also include criteria for ensuring that we all walk together towards a low carbon and resilient path and a happily ever after.
Superheroes Assemble!