Photo by Leigh Madeira

Since 2011, Climate Policy Initiative (CPI) has produced The Global Landscape of Climate Finance series (the Landscape), which is the most comprehensive inventory of climate change investment available. It provides a visual and descriptive snapshot of how much and what kind of finance is flowing toward low carbon and climate resilient actions globally in order to identify gaps and opportunities to scale-up investment. When updated regularly, such analysis can also reveal trends in climate finance over time.

Over the years, CPI has worked with local partners to produce national landscapes of climate finance, including for Germany, Côte d’Ivoire, Indonesia, India, Kenya, and Brazil. Figure 1 highlights the countries that have developed, or are in the process of developing, national landscapes of climate finance using CPI’s methodology. It also shows the countries that have carried out national climate finance tracking using methods and tools from other organizations, most notably the Climate Public Expenditure and Investment Review (CPEIR), and Private Sector Climate Expenditure and Institutional Review (PCEIR), the Investment and Financial Flows (IF&F) approaches supported inter alia by the United Nations Development Programme (UNDP).

Countries that have designed and applied Climate Budget Tagging (CBT) in their Public Financial Management System are also included.

Published and ongoing domestic climate finance tracking initiatives

This document draws on CPI’s experience developing several national landscapes of climate finance in various countries throughout the past ten years. While not a comprehensive instruction manual, we hope that this will help guide government officials and practitioners looking to track climate finance using our Landscape approach. Throughout this document, we aim to provide answers to some of the key questions that may emerge at different stages when completing a national climate finance tracking exercise. This document borrows from the Land-use Finance Tool (EFI and CPI, 2018), developed by the European Forest Institute and CPI, expanding from land use sectors to all major mitigation and adaptation sectors.

In this document, we outline the process for developing a national climate finance landscape in four steps. By working through each step, countries will learn key insights to how, when, and from whom finance is flowing towards climate action. Figure 2 summarizes the objectives and key parameters for each step. Early consideration of the desired outcomes of the landscape of climate finance work will help to focus analytical efforts including scope
and approach.

Figure 2: Key steps in tracking domestic climate finance