Direct Access to Climate Finance - Lessons Learned by National Institutions
Developing countries need significant amounts of finance to help them adapt to the changing climate and follow a path of low-carbon development. The international community has set up multilateral funds to help support climate change mitigation and adaptation in these nations. Two of the largest climate funds, the Adaptation Fund and the Green Climate Fund (GCF), have committed to allowing institutions from developing countries so-called direct access to finance. Direct access in this context means that national or subnational entities1 become accredited to receive finance directly from the fund without going through an international intermediary (like the World Bank or a regional development bank). The goal of such direct access is, among other things, to reduce transaction costs and enhance national ownership over available financing.