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The paper analyzes the tension between recipient country ownership and contributor-led accountability in climate finance. It identifies three models of finance delivery: an accountability-emphasized model for fragile or corrupt states, a transitional shared ownership model, and a full recipient ownership model as the ideal goal. The author argues that while many developing countries have strong financial management systems, they often lack robust results management and social safeguards, suggesting that contributors should invest in strengthening national systems rather than creating duplicative international ones.

The report argues that the proliferation of multilateral climate funds has led to overlapping roles and inefficiencies. It proposes a two-stage reform process: short-term specialization of fund mandates to improve the division of labor, and long-term consolidation or closure of certain funds to streamline the climate finance architecture. The analysis is based on literature reviews and interviews with over 50 stakeholders, focusing on five UNFCCC-linked funds and the Climate Investment Funds.

The document provides guidance for national institutions in developing countries on navigating the direct access modalities of the Adaptation Fund and the Green Climate Fund (GCF). It outlines the importance of strategic planning, the resource-intensive nature of the accreditation process, and best practices for project design and implementation to ensure national ownership and reduced transaction costs.

The briefing examines the climate policy landscapes of the U.S. and China, noting that while the U.S. lacks a national carbon price, it has significant subnational activity. China has established the world's largest emissions trading scheme (ETS) but maintains that it is not obligated to provide international climate finance as a developing nation. Both countries are advancing corporate climate disclosure rules, though they differ on the requirement for Scope 3 emissions. The paper suggests cooperation on sustainable procurement, data standards for emission accounting, and subnational carbon market exchanges.