Invest
International Climate Fund progressing well but still room for improvement
The UK’s £3.87 billion International Climate Fund (ICF) is progressing well but there are still some areas that need improvements, according to a report from the Independent Commission for Aid Impact (ICAI).
The report gives the fun a green-amber rating meaning that it performs “relatively well” against the criteria for effectiveness and value for money but some improvements should be made.
The government fund’s goal is to support international poverty reduction by helping developing countries adapt to the impacts of climate change, take up low-carbon growth and tackle deforestation.
Graham Ward, ICAI chief commissioner, said, “The ICF has faced several delivery challenges, many of them related to the initial pressure to spend money quickly. It has since made good progress on addressing those challenges.
“There is still scope to improve the pace of implementation on what are often long term investments. It is too early to assess overall impact, but trajectory is promising. The ICF has had a positive impact on the international financial system, for example, in the development of the Green Climate Fund and in the operation of the Climate Investment Funds.”
Commissioner Mark Foster added that the ICF needs to develop a more “detailed private sector strategy”, such as identifying the conditions and strategies needed for attracting private capital for low-carbon, resilient growth.
The ICAI make a series of six recommendations for the ICF, including working with a wider range of partners at an international and national level, increasing flexibility in the allocation of resource and capital expenditure, and being more transparent and inclusive, such as publishing strategies, actives and progress online.
Photo: Petras Gagilas via Flickr
Further reading:
France pledges $1bn to Green Climate Fund
UN Green Climate Fund nears $10bn after Spanish pledge
Climate finance of $150bn needed to limit climate change