Joint MDB Report on Mitigation Finance 2011

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May 2011
The international community recognizes the need to join forces to avert dangerous climate change. This requires mobilizing financial resources from a wide range of sources, public and private, bilateral and multilateral, including alternative sources. It is increasingly important to track and report financial flows that support climate change mitigation and adaptation, to build trust and accountability with regard to climate finance commitments and monitor trends and progress in climate-related investment. Yet there is currently no precise internationally-agreed definition of climate finance and current efforts to track climate finance lack transparency, comparability and comprehensiveness.This report is based on the joint MDB approach for mitigation finance reporting, developed by a group of MDBs to work towards better tracking of climate finance. It responds to the particular context of the activities that the MDBs carry out in developing and emerging economies and are built on the premise that climate mitigation and development are two sides of the same coin. A separate report on adaptation finance is being published in parallel to this report.
Each MDB¿s methodology for tracking mitigation finance1 differs, but the joint MDB approach tries to find commonalities and is an attempt to jointly report on resources mobilized for a set of commonly-agreed mitigation activities (see below). The joint approach is also a work in progress aimed at assisting the MDBs, as well as other organizations that might want to join or more clearly understand their engagement in mitigation. This will lead to gradual convergence towards a harmonized approach for the tracking of climate change finance.