RESULTS-BASED CLIMATE FINANCE IN PRACTICE: DELIVERING CLIMATE FINANCE FOR LOW-CARBON DEVELOPMENT
Results-Based Financing (RBF) demonstrates strong potential to deliver on each of these prerequisites for low-carbon development. Broadly defined, RBF is a financing modality under which funds are disbursed by an investor or donor to a recipient upon the achievement of a pre-agreed set of results, with achievement of these results being subject to independent verification. Results-Based Climate Financing (RBCF) can therefore be understood as RBF provided specifically for climate mitigation or adaptation results. This report is based on a review of 74 RBCF programs implemented in developing countries.2 It aims to (i) assess the characteristics and overall volume of funding flowing through RBCF programs, (ii) describe the various approaches to designing and implementing RBCF programs, and (iii) compare practical experiences in applying RBCF with the existing theory and literature describing this financing approach.
Results-Based Financing (RBF) demonstrates strong potential to deliver on each of these prerequisites for low-carbon development. Broadly defined, RBF is a financing modality under which funds are disbursed by an investor or donor to a recipient upon the achievement of a pre-agreed set of results, with achievement of these results being subject to independent verification. Results-Based Climate Financing (RBCF) can therefore be understood as RBF provided specifically for climate mitigation or adaptation results. This report is based on a review of 74 RBCF programs implemented in developing countries.2 It aims to (i) assess the characteristics and overall volume of funding flowing through RBCF programs, (ii) describe the various approaches to designing and implementing RBCF programs, and (iii) compare practical experiences in applying RBCF with the existing theory and literature describing this financing approach.
