Climate change is one of the greatest challenges facing the world today. Significant amounts of finance are and will be required to enable governments around the globe to support adaptation and mitigation efforts. There is growing interest among government, civil society, the private sector and international actors on how to mobilize finance, from both international and national sources, to address the climate crisis.1 Climate finance creates opportunities to mitigate the worst effects of climate change on poor and marginalized groups. Whether it will do so or not depends on the strength of public finance accountability ecosystems through which funds – both domestic and from international donors – are allocated and executed to deliver climate-adapted local development. In this paper, we will use the term “CFA ecosystem” to refer to the public finance accountability ecosystem, but with particular attention to climate-specific funding for inputs and development outcomes related to climate change adaptation.
This report synthesizes lessons learned from a two- year pilot project supported by the Swedish Postcode Foundation and implemented in Bangladesh, Nepal, and Indonesia by ActionAid Bangladesh (AAB), Forest Resource Studies and Action Team (ForestAction) Nepal, the Indonesian Traditional Union of Fisherfolk (KNTI) and the National Center for Indonesia Leadership (INISIATIF) with support from the International Budget Partnership (IBP). Launched in 2019, the project set out to explore:
- How CFA ecosystems function
- The strategies and roles of various actors within them – including civil society – to strengthen and engage in the systems to ensure that resources reach marginalized communities.
The report synthesizes lessons from this project on what needs to be done to ensure that climate finance is used responsively and accountably to mitigate the worst effects of climate change on poor and marginalized groups. The purpose of this study, conducted by the TAP Room, was to draw out insights and learning from the project to deepen knowledge of CFA ecosystems for the organizations involved and the broader field. The research team conducted a desk review of relevant project documents, interviews with IBP staff, and interviews and focus groups with the implementing civil society organizations (CSOs) in Bangladesh, Nepal, and Indonesia. However, the study is not intended to evaluate IBP’s contribution to, nor the final outcomes of, of the CSO efforts.