Abstract
Social scientists are increasingly interested in the processes that give shape to global policy solutions. I investigate the issues of intermediation and the role of intermediaries in climate finance. I use the case of the Green Climate Fund (GCF), a new consortium for dedicated funding set up under the United Nations Framework Convention on Climate Change (UNFCCC) to assist developing countries in responding to climate threats, to ask a fundamental question: What role do intermediaries (GCF-accredited and related entities) play in catalysing climate action through climate finance in these countries? This paper offers three propositions focused on the role of intermediaries in the GCF, and tests these using data from the GCF and the wider literature. The results show a growing dominance of international intermediaries in GCF project development and implementation, the low capacity of national intermediaries to conceive and scale projects, and the mismatch between planned and actual funding allocations. Collectively, these outcomes derail the GCF from its core objectives of promoting country ownership of projects, building capacity of local intermediaries, and equitable allocation of funding between mitigation and adaptation. I offer three learning models to help the GCF and intermediaries capitalise on the early lessons from GCF activities and to scale climate finance effectively in developing countries.
Highlights
The role of intermediaries in catalysing climate finance is gaining recognition in global policy and practice space
I use the case of the Green Climate Fund (GCF), a new consortium for dedicated climate funding set up under the United Nations Framework Convention on Climate Change (UNFCCC), to ask a fundamental research question: What role do intermediaries in the GCF play in shaping global climate finance activities in developing countries? Answering this question is important for understanding how climate activities are funded and implemented and, in turn, how these shape the landscape of climate change, both nationally and globally
This research shows that these intentions are difficult to achieve in a structure that is evolving and shaped by many intermediaries with their different roles, agendas, and capabilities
Summary
The role of intermediaries in catalysing climate finance is gaining recognition in global policy and practice space. Building on Parag and Janda [2], in this paper, I treat intermediaries as middle actors that sit between global climate finance institutions and nation-states, as well as between climate finance and implementation, and play a crucial function in bridging the implementation gap in developing countries. These intermediaries are a broad array of international, public, private, and civil-society actors. I highlight the proposition that the current approach and design of the GCF will reinforce the historically dominant role of international intermediaries, limit the capabilities of national intermediaries to take local ownership, and widen the gap between adaptation and mitigation funding. The paper concludes with a brief discussion and offers three learning models to help the GCF and intermediaries capitalise on early lessons from the GCF’s activities and to scale climate finance effectively in developing countries
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