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The role of finance in an international post-2012 climate change agreement cannot be overstated. Agreements on the provision and tracking of financial support to developing countries to reduce their greenhouse gas emissions, adapt to a changing climate and build capacity to report their actions internationally will be critical to the success of the international negotiations for a post-2012 climate regime at Copenhagen and beyond.

The need for Parties to clearly demonstrate financial support has given rise to two questions. First, what types of financial contributions from developed countries can count as climate finance? Second, what framework can be put in place to track these contributions? This Working Paper aims to shed light on both of these issues.