Climate Finance

Climate finance encompasses the financial resources and instruments used to support measures against climate change—covering mitigation, adaptation, and also addressing loss and damage caused by climate change.
Since the UNFCCC Conference of the Parties (COP) in Copenhagen in 2009, the number of climate funds has steadily increased, including domestic, bilateral, and multilateral funds. Among the most important multilateral climate funds are the Green Climate Fund (GCF), the Climate Investment Funds (CIF), and the Global Environment Facility (GEF). The GCF and GEF are two financing mechanisms under the UN Framework Convention on Climate Change (UNFCCC), with the GEF active since 1992 and the GCF since 2016. The Climate Investment Funds, which include the Clean Technology Fund (CTF) and the Strategic Climate Fund (SCF), were established in 2008 outside the UNFCCC process to provide developing countries with financing for low-carbon, climate-resilient development.

Through project and program evaluations, we support major climate funds and other climate finance mechanisms in identifying areas for improvement. For example, Arepo conducted the first evaluation commissioned by the GCF Secretariat. This evaluation examined the Readiness and Preparatory Support Programme, which aims to strengthen the capacity of developing countries to access climate finance and use it effectively. The evaluation combined a comprehensive portfolio analysis with nine country case studies, providing insights into the effectiveness and operationalization of the program.

In a widely cited study for the Green Climate Fund and the Climate Investment Funds, we highlighted synergies and overlaps among the various climate funds. Our findings were presented in a synthesis report, a portfolio report, and five country case studies.

In addition, we developed an online course on climate finance for the Renewables Academy (RENAC), which is delivered through web-based seminars.

For Germany’s international climate finance, we advise the responsible federal ministries through consulting projects, such as the evaluation of individual projects within the International Climate Initiative (IKI).