Collaboration between climate finance funds can enhance countries' resources and results. A report jointly commissioned by the Green Climate Fund (GCF) and the Climate Investment Funds (CIF) shows that country-driven coordination and collaboration between funds in blending finance can lead to better development outcomes, enhanced efficiency, and increased financing in developing countries. The study, "Synergies Between Climate Finance Mechanisms," is the result of a multilevel analysis of activities supported by the CIF and GCF, as well as interactions and synergies with the Global Environment Facility and Adaptation Fund, to the extent possible.
Conducted by the independent consultancy group Arepo, the report is based on four case studies in Cambodia, Kazakhstan, Mongolia and Namibia, as well as stakeholder interviews and project portfolio reviews. It explores factors that favoured or hindered synergies and suggests areas for optimisation.
The study shows that investments supporting energy efficiency, renewable energy and resilience building led to improved rates of pilot programme replication, project continuity, scale, and knowledge sharing. When the funds' respective investments built on one another, supported thematically or geographically complementary objectives, or were aligned with knowledge sharing efforts, enhanced outcomes were most likely.
"This study highlights the value of partnerships in bridging the climate financing gap and enabling developing countries to pursue and achieve ambitious climate action," said Yannick Glemarec, Executive Director of the Green Climate Fund. "GCF is committed to collaborating with other climate funds to leverage comparative advantages and provide complementary finance and expertise, unlocking the power of climate-friendly investment for low emission, climate resilient development."