The international community has pledged to provide comprehensive financial support for climate action. These financial flows also pose new challenges to national governments in receiving countries. Against this backdrop, from a development policy perspective, the question arises how countries with all too often insufficient capacities in financial governance can cope with these flows. This concerns not only traditional climate policy institutions such as ministries of environment, but also ministries of finance or audit courts, for instance.
In the framework of these challenges, this short study discusses the links between good financial governance and climate finance, and provides conceptual inputs to carve out implications for German development policy. The study was commissioned by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ).