Using the experience of five countries in Asia (Bangladesh, Cambodia, Indonesia, the Philippines and Vietnam), this report considers whether funding for climate change is being managed in the most effective manner, based on the long history of lessons learnt from development assistance over the last 60 years. Much climate financing is in the form of global funds (also called ‘vertical funds’). As the World Bank has noted ‘global funds need to support country-led strategies and priorities’ to be effective and sustainable. The report suggests that, although global agreements to fund climate change have emerged over the last 20 years, challenges remain to making this finance fully effective and sustainable. Indeed, funding channels for climate change are proliferating, there are increased signs of fragmentation, and evidence that administrative and institutional requirements burden recipient countries unnecessarily.
Whilst it is recognised that providing external financing for any development activity is complicated, it appears that climate change financing is more complicated than most. In the diverse contexts of the 5 case study countries, some common themes emerge. Following on from these findings, the report includes the Bangkok Call for Action which are the recommendations arising from the Climate Change Finance and
Aid Effectiveness Dialogues meeting which took place 19–20 October in Thailand. It recommends that we apply what we know of how to manage external financing effectively more robustly to climate change funding