The term climate funds designates financial resources,
Investment funds and financing instruments that can
be used to address the adaptation and mitigation of
the climate change impacts activities. Recently, there
has been a proliferation of climate fund initiatives
(multilateral and bilateral), which seek to mitigate
climate risks and help the most vulnerable adapt to
climate change. Although not specifically devoted
to transport, several of the existing climate funds
can be used for the mitigation of GHG emissions or
to reduce the negative effect of impacts activities in
the transport sector. These include, for example, the
Global Environment Facilities, the Clean Technology
Fund, the Global Climate Change Alliance, the Inter-
American Development Bank (IDB) Sustainable
Environmental Climate Change Initiative, the ADB
Climate Change Fund, and the ADB Clean Energy
Fund. Many of the funds include a sunset clause that
stipulates the necessary steps that will be taken to
conclude operations once a new UNFCC financial
architecture takes effect (see box 6.2). It is, however,
far from clear what the future funding landscape will
look like in the post-2012 regime.