Chapter 1: Same but different? Understanding divergent definitions of and views on climate finance
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This chapter unpacks the diverging definitions and accounting methods of climate finance. Attaining consensus among Parties on these issues is crucial in light of the new collective quantified goal on climate finance that is being defined until the end of 2024. In the following we describe and discuss the main controversies - notably questions regarding the eligibility of climate-related activities and counting of different finance instruments towards international commitments, the relationship between climate and development finance as well as the accounting for of 'negative' climate finance. We argue that the international community needs high-level institutional change and leadership to facilitate a fast, goal-oriented and consensual process to resolve these issues. In the absence of such convergence, attaining the objectives of the Paris Agreement will continue to suffer from a hodgepodge of institutional approaches to defining, counting and accounting for climate finance.