Red tape is strangling a vital lifeline for the world's most vulnerable nations. As 2024 approaches, there's a pressing need to transform the climate finance system so it can serve those most in need: least developed countries, or LDCs, small island developing states, or SIDS, and fragile, conflict-affected regions.
Today, it can take five to seven years for these countries to navigate the complex processes to access support through channels such as the Green Climate Fund. Even then, they are often only able to finance short-term projects that focus on quick wins to demonstrate results, but generally prove to be ephemeral solutions without lasting impact.
To compound the problem, intermediaries and administrators are sucking up far too much of the climate finance flows that should be delivering impact on the ground. It is typical to see at least 30% absorbed before money gets anywhere near the country facing the challenge. We know of one project in Central Africa — which is by no means unusual — where as much as 70% of the funding is required to simply meet the donor’s administrative requirements.
About the authors
Clare Shakya
Clare Shakya is the global managing director for the Tackling Climate Change initiative at The Nature Conservancy. She led the integration of climate change thinking into the United Kingdom's development interventions in Asia and Africa and then created initiatives to improve access and delivery of climate finance as the International Institute for Environment and Development’s climate director.
Yamikani Idriss
Yamikani Idriss is an environmental officer with the Ministry of Natural Resources and Climate Change, Malawi. He is also the lead climate transparency negotiator for Malawi and LDCs, and a technical expert reviewer under the United Nations Framework Convention on Climate Change.
