This case study explores how transparency goes beyond reporting obligations to become a strategic tool for mobilizing finance, from the public and private sectors, and strengthening climate action from an array of actors.
The enhancement and sustained implementation of climate transparency frameworks can identification facilitate of the investment opportunities and financing gaps, as well as improve planning, and attract new resources for climate action.
Under the Paris Agreement, the Enhanced Transparency Framework (ETF) serves as the compass for global climate action and through its main instrument, the Biennial Transparency Reports (BTRs), countries submit information on greenhouse gas emissions, progress toward meeting Nationally Determined Contributions (NDCs), climate change impacts and adaptation, as well as the financial and technical support needed and received.
In order to fulfilling these requirements, countries need to build and sustain national frameworks of producing verifiable and consistent data.
Transparency of climate finance allows countries to track the sources, uses, results and impact of funding. On a national level, this leads to more informed decision-making, strategic allocation of public funds, and the mobilization of additional flows, including off-budget and results-based finance. On an international level, it improves coordination, facilitates access to finance, and strengthens trust.
By building transparency frameworks aligned with national priorities and capacities, countries can not only showcase information about finance flows and gaps to improve the steering of international climate financing, but also unlock opportunities for targeted investment from the private sector, in national priority areas and measures proven to have the most significant impact.
Ultimately, this case study invites readers to see transparency not just as a reporting exercise but as a catalyst for climate finance mobilization, especially as countries update their NDCs this year, and to reflect on the value of transparency as an strategic enabler.
This resource provides further guidance on Stage 2: Identifying and Prioritizing Investment Needs, Component 4: Feedback loop for NDCs, NAPs, and LT-LEDS of the Climate Investment Planning and Mobilization Framework (CIPMF).