The promise of direct access to climate finance: evidence and lessons from LDCs and SIDS

Least developed countries (LDCs) and Small Island Developing States (SIDS) are particularly vulnerable to the impacts of climate change. 

Two of the most important funds providing climate finance for LDCs and SIDS are the Adaptation Fund and Green Climate Fund. Both funds offer ‘direct access’ to climate finance, which allows countries to access funding using national organisations, bypassing multilateral agencies and banks, and thereby empowering countries and helping to foster greater climate justice. 

This paper explores the persisting challenge of unlocking direct access finance for LDCs and SIDS, and puts forward recommendations for reforms that might improve access for national-level entities to these two funds.