The G20 noted that the varying accreditation and programming requirements for climate and environmental funds create "fragmented and time-consuming" pathways for accessing their resources. The combined annual commitment capacity of the Green Climate Fund, Climate Investment Funds, Adaptation Fund, and Global Environment Facility is between $4 billion and $5 billion, with disbursements amounting to $1.4 billion in 2022. Their disbursement-to-approval ratios range from 76% for the Global Environment Facility to 31% for the Green Climate Fund.
This data is part of an independent review authorized by the G20, which highlighted that while these funds represent a small volume compared to other public and private sources, they provide concessional resources essential for supporting an effective climate transition in developing and low-income economies.
The independent review recommended that climate funds implement targeted measures to enhance efficiency, including streamlining accreditation processes, reducing project approval times, and accelerating disbursements. The recommendations call for collaboration to harmonize procedures to support integration and lower transaction costs, aiming to function as a cohesive system.
Additionally, the review urged climate funds to actively support investment platforms established by countries, shifting focus from supporting individual projects to country-driven strategies. "Monitoring the effective implementation of the report's recommendations will occur over the next G20 presidencies in collaboration with the vertical climate and environmental funds, noting its voluntary nature," stated the G20 sustainable finance report.
Brazil has leveraged its G20 presidency to advocate for increased financing for developing countries, arguing that these nations are lagging in the transition to low-carbon economies while facing significant climate change impacts.
Tatiana Rosito, Brazil's finance track coordinator, emphasized that the recommendations for climate funds, along with a roadmap for reforming multilateral development banks to enhance their lending capacity, were significant outcomes from the G20 finance ministers' meeting due to their connection to mobilizing more resources for climate transition financing.
Brazil's Environment Minister, Marina Silva, remarked during a press conference at the IMF and World Bank meetings that national leaders gathering at the G20 summit in Rio de Janeiro in November "will be drawing from this groundwork." Silva added, "Even amid a geopolitical context of heightened tensions, which could have hindered our ability to reach consensus, we were able to foster an understanding that addressing climate issues requires collective effort and extensive cooperation, regardless of our differences."