Recommendation 5

We believe that the current level of international climate finance is fundamentally over-reported, reducing the credibility of declarations and scope for achieving climate adaptation and resilience. We are calling for full transparency in the reporting of climate finance to enhance the ability of third parties to track funding from start to finish. To reach the UK-backed goal of channelling 70% of climate finance directly to local communities, we urge the FCDO to report in full transparency how much climate finance is reaching the local level through its main reporting channels—such as the UK’s Development Tracker and the Development Assistance Committee (DAC) of the Organisation for Economic Co-operation and Development (OECD)—and to encourage other donors to do the same. Further, the UK Government should host regular meetings between fund-recipient institutions from LDCs and SIDS, bilateral and multilateral donors during its COP presidency to devise a functional definition of climate finance as well as a clearer definition of the term ‘new and additional’ for use by donors. The Government should provide a progress report by 31 March 2022 . (Paragraph 62) Reinforcing policy coherence across UK climate action