This report by CDC Climate Research aims to highlight issues surrounding the financing of climate policies in developing countries and how nationally appropriate mitigation actions (NAMAs) could be used as a part of the solutions. The report examines the definition and monitoring of climate financing commitments, how to ensure transparency and whether public funding alone will be sufficient. It discusses the financing needs of developing countries, the importance of the private sector and the characteristics that new NAMA tools need to include in order to be effective. The report finds that reliable and transparent information on the financial commitments of developed countries requires a harmonisation of monitoring, reporting and verification processes. This, together with a clarification of accounting rules, is crucial, though not sufficient, unless public funds are increased and supplemented by private sector investment.The report highlights the success of green bonds, issued by the World Bank in 2008, which have so far raised almost three billion US dollars. The World Bank internalises much of the risk in offering these AAA rated standardised products using the money to finance projects that reduce greenhouse gases. The clean development mechanism (CDM) and insurance that limits losses could also be used to encourage investment, as can the use of public funds to manage political, economic and operational risk (particularly by guaranteeing private investment). The implementation of NAMAs in developing countries should fill gaps in existing programmes and take place within the framework of climate compatible development strategies. It is vital for developing countries that new funding is established as an additional component to prior commitments. The report suggests that one of the main challenges will be to ensure long-term support for all developing countries, though the authors are confident that private sector involvement can best encourage a balance between both short- and long-term programmes.