In view of the severe restrictions on public finances in developed countries, achieving a solution to the requests of developing countries for more definitive commitments and more specific figures for climate finance continues to be a challenge.

There are also some barriers that limit access to the funds. The Regional Dialogue on Climate Finance, held recently in Honduras, demonstrated that there is a wide gap between the availability of climate funds on the one hand and access and effective use on the other.

The Monitoring, Reporting and Verification mechanisms create certain constraints on access to finance. Furthermore, effective coordination is required between the wide range of government institutions with responsibilities for climate change. For example, the Ministries of Finance should have teams that specialise in this theme. Therefore, the strengthening of national capabilities, including through South-South exchange, is essential to ensure effective and efficient management of finance. This also entails greater inclusion of other actors who specialize in the development of capabilities relating to climate finance management: the private sector, civil society and academia.

Preparation for the financial management of climate change therefore means a challenge in terms of appropriate management of both external and internal funds, and the use of specialised knowledge of a variety of non-governmental actors. Management that promotes the inclusion of climate change in the various administrative levels in public and private spheres, in production sectors and in the different geographical areas of each country. Moreover, the external funds also require better mechanisms to adapt to national and local contexts and, in this way, facilitate access and promote the relevance and effectiveness of financing, including lower transaction costs.

The current Newsletter presents this problem in the context of Latin America, and the EU approaches to it. The Focal Point of EUROCLIMA in Honduras, Irina Pineda, has participated as guest editor for this issue.