Is transparency furthering clarity in multilateral climate governance? The case of climate finance

Developing countries’ ambitious climate action hinges on the provision of climate finance from developed countries. Yet, despite decades of debate and contestation over this, substantial controversies continue to persist over whether and how much climate finance is flowing, including whether it is ‘new and additional’ to existing development assistance, whether it targets climate mitigation or adaptation, and whether it is delivered as grants or loans. In this article, we draw on a little-examined source of self-reporting by countries to shed light on these persisting climate finance controversies. Elaborate transparency arrangements have been set up under the United Nations Framework Convention on Climate Change (UNFCCC), whereby countries report on climate finance provided and received. We examine transparency reports submitted by 26 countries from 2014 to 2021 by both developed and developing countries, and international review of these reports, to ascertain the extent to which country self-reporting under the UNFCCC sheds light on the nature of climate finance flows between developed and developing countries. We find that both the reports submitted and the international review of these reports are not furthering clarity around climate finance provided and received. This is because of (a) a persisting lack of multilaterally agreed definitions of key aspects of climate finance provided, and a resulting heterogeneity of definitions used by countries to self-report; and (b) because international review of country self-reporting is subject to politically negotiated limitations. We conclude that clarity remains elusive on climate finance provided and received under the UNFCCC, a situation that seems likely to continue under the Paris Agreement’s enhanced transparency framework, due to be implemented in 2024.