Climate Finance Fundamentals 2: The Global Climate Finance Architecture

Climate finance remains central to achieving low-carbon, climate resilient development. The global
climate finance architecture is complex and always evolving. Funds flow through multilateral
channels – both within and outside of the UNFCCC and Paris Agreement financial mechanisms
– and increasingly through bilateral, as well as through regional and national climate change
channels and funds. Monitoring the flows of climate finance is difficult, as there is no agreed
definition of what constitutes climate finance or consistent accounting rules. The wide range of climate finance
mechanisms continues to challenge coordination. But efforts to increase inclusiveness and complementarity
as well as to simplify access continue.