The climate finance architecture — the system of specialized, public funds that help countries implement climate mitigation and adaptation projects and programs — is crucial if the world is to overcome the climate change challenge. These funds play a valuable role in everything from deploying renewable energy to helping smallholder farmers cope with drought to restoring degraded forests, and often mobilize even larger volumes of funding from the private sector and other sources.
Yet the climate finance architecture has become too complex. Over the past 25 years, dozens of national, regional and international climate funds have been created. Each new fund responded to needs and gaps that existed at the time, but this has led to a rather complicated system