Access to climate and biodiversity finance is shaped by the wider development finance landscape, along with structural constraints and fragmentation. Although essential for developing countries, especially the most vulnerable, this finance remains embedded in broader development finance flows rather than operating as a distinct system. Funding has increased over the past decade, led mainly by bilateral donors and multilateral development banks. Vertical climate and environmental funds play an important catalytic role, but they still account for a small share of total flows and are often harder to access for countries with limited capacity. Fragmentation across funding sources further raises transaction costs and strains institutional capacity. Econometric evidence shows that allocation patterns continue to reflect traditional development finance drivers, with absorptive capacity often outweighing vulnerability. As a result, countries most in need may still face persistent barriers to access, underscoring the need for more coherent, co-ordinated and context-sensitive approaches.
The report combines descriptive statistics, econometric analysis and six country case studies (Armenia, Gabon, Madagascar, Senegal, Saint Lucia and Togo) to assess access to international environmental finance, identify current bottlenecks and highlight good practices that could be scaled up.
