Latest content: Small states

Nationally Determined Contributions (NDCs) are the main mechanism by which countries communicate their ambitions and efforts in support of the Paris Agreement. Starting in 2023 and every five years thereafter, governments take stock of the implementation of the Paris Agreement, known as the global stocktake (GST). The GST holds countries accountable for their collective efforts to achieve the targets they set themselves in 2015,and tracks the progress made. Recent analysis of country NDC commitments shows that progress is not happening ‘at a pace or scale consistent with achieving’ the goals of the Paris Agreement. Urgent transformational change is needed.

This report provides a succinct overview of development finance and climate finance, focussing on its provision to Least Developed Countries and Small Island Developing States within the Commonwealth. It considers the current and potential roles of multilateral development banks and international development financial institutions; tools such as ‘debt for climate’ swaps; and the need to reconsider the use of and balance between debt capital and grants. Finally, the report proposes alternative funding mechanisms and reforms to international financial architecture that could have transformative impacts on capital flows to enable vulnerable developing nations to respond to the effects of climate change and increase their resilience.