Foreword  3

Acknowledgments  5

Abbreviations and acronyms  11

Executive Summary  13

Access to finance for climate and biodiversity is defined by structural constraints and fragmentation  13

A joint agenda for developing countries and donors on climate and biodiversity finance  14

Overview  17

Finance for climate and biodiversity is growing, but the countries that need it most find it hard to access  17

New analysis confirms that climate and biodiversity finance allocations are not always shaped by need or vulnerability  26

Key donor actions for enhanced access: tailoring support to the development reality at country-level  30

1 The challenge of accessing climate and biodiversity development finance  33

1.1. The growing financing needs for climate and biodiversity require moving from commitments to access  34

8 Access to finance for climate and biodiversity: From global commitments to country action

1.2. International finance is critical for developing countries in the access debate, including for climate and biodiversity  34

1.3. Debates on access to finance reflect fundamental misconceptions about the reality of financing  36

2 Understanding the complex international architecture of climate and biodiversity finance  43

2.1. Alleviating developing countries' financial constraints is a key rationale of international finance  44

2.2. In the environmental context, access to finance focuses on vertical funds, but they remain small players  45

2.3. Vertical climate and environment funds are difficult to access, especially for countries with limited capacity  46

2.4. Bilateral donors and multilateral development banks provide the bulk of climate and biodiversity finance  51

2.5. Donor fragmentation constrains effective access, compounded by increasing disbursement delays  54

2.6. Integrated climate and biodiversity approaches can improve impact, but may complicate access and blur additionality  58

2.7. Private capital mobilisation and innovative instruments so far provide only limited additionality in countries with the greatest access constraints  60

3 Towards an integrated approach to understanding finance for climate and biodiversity  67

3.1. Climate and biodiversity finance follows broader development finance patterns, but with important limitations  68

3.2. A fuller understanding of country selection and allocation of climate and biodiversity finance requires going beyond traditional models  70

3.3. The findings confirm that climate and biodiversity finance follows the same allocation drivers as development finance  72

3.4. Environmental factors are incorporated into allocation decisions, but do not overcome underlying access constraints  80

3.5. The overall allocation outcomes point to structural inequities and persistent access gaps  82

3.6. Access to finance goes beyond eligibility and requires a shared reform agenda by donors and developing countries  90

4 Overcoming country barriers to accessing climate and biodiversity finance  93

4.1. Strong narratives can initiate access to finance, but institutional capacity is key to ensure sustained flows  94

4.2. Coherent, integrated national strategies are prerequisites for turning eligibility into sustained climate and biodiversity finance access  98

4.3. Domestic governance and co-ordination are foundations for the effective access to climate and biodiversity finance  103

4.4. Robust domestic systems and instruments are prerequisites for scaled climate and biodiversity finance  106

4.5. Capacity underpins the entire finance access pipeline from proposal to results  112

5 Donor entry points to support access to climate and biodiversity finance  119

5.1. Embedding climate and biodiversity vulnerability in allocation frameworks would avoid sidelining the most vulnerable countries  121

5.2. Flexible donor co-financing and procurement policies are key for fit-for-purpose access  123

5.3. Strengthening and working through country systems is essential for long-term effectiveness and sustainability  125

5.4. Improving donor co-ordination is key to improve country access to finance  127