Beyond Creative Accounting

This report explores the evolving relationship between climate finance, ODA and broader development finance flows since 2009, the year the $100 billion climate finance goal was agreed, and offers recommendations to improve transparency, accountability, and effectiveness in climate finance delivery. While headline figures often suggest progress on increasing climate finance flows, deeper analysis reveals that much of the reported increase is not additional. Furthermore, analysis suggests that climate finance may be coming at the expense of traditional ODA priorities and may have limited impact on climate goals themselves. Without clearer definitions, robust accounting standards, and a commitment to transparency, the credibility of both climate and development finance is at risk. To meet the ambitions of the Paris Agreement and the Sustainable Development Goals, Parties must move beyond creative accounting when delivering the NCQG, and toward a system that delivers real, measurable and effective support to developing countries.