Transparency on Climate Finance Reporting – Sustainable Finance Briefing Paper Series

The “Transparency on Climate Finance Reporting” briefing paper outlines the importance of clearly identifying climate finance structures and tracking spending to ensure effectiveness, transparency, and accountability. It highlights the EU’s advanced tracking system, which integrates climate objectives across various budget lines and applies adapted Rio Markers to assess real climate contributions. However, challenges remain, such as inconsistent methodologies, lack of monitoring, and integration gaps in accounting systems. In contrast, Germany lacks a systematic tracking approach at the federal level, with comprehensive reporting only occurring for international spending. The briefing emphasizes that defined targets and recognition of negative contributions are essential for credible climate finance reporting.