IDFC Guidance for Tracking Green Finance
Rigorous standards of consistency, transparency, and accountability in the tracking of green finance are vital for International Development Finance Club (IDFC) members as they strive to amplify their green investments.
As pioneers in this field, IDFC members contributed over a third of global public climate finance in 2021/22, providing more than USD 1.5 trillion since the adoption of the Paris Agreement in 2015.
Climate Policy Initiative and Trinomics have created two guidance documents to support IDFC members in tracking their green finance:
These documents are part of the three-year IDFC Capacity Building Initiative for Tracking Green Finance, which is designed to substantially enhance the ability of IDFC members to consistently track and report their green finance flows. The initiative aims to deepen IDFC members’ understanding of the principles of climate finance tracking, streamline their tracking processes through tools such as decision trees, and address related challenges.
The General Guidance document outlines IDFC green finance tracking methodologies, key challenges for tracking green finance, and capacity-building needs before laying out guidelines for tracking finance for mitigation, adaptation, and biodiversity.
The Sectoral Guidance document builds on the approaches outlined in the General Guidance to delve deeper into sectoral contexts. It aims to ensure that the tracking and reporting processes are not only standardized but also cater to the unique characteristics of five sectors: energy, transport, water, agriculture and forestry, and urban.
Together, these documents aim to assist IDFC members with their reporting for future iterations of the IDFC’s annual Green Finance Mapping exercise. The guidance is based around the IDFC’s green finance tracking methodologies, which have been developed since 2015.
