Energy consumption is growing in developing countries at a great pace and improvements in energy efficiency (EE) could provide opportunity for economic growth while providing broader access to energy and related services even from limited energy resources. This report underlines that moving the developing world towards a low carbon economy requires a scaling up of financing for EE. It examines the current role of climate finance in funding EE projects and the potential to channel funds to relevant EE projects under the new Green Climate Fund. The report focuses primarily on public climate finance flows from North to South, probing the current use of funds from multilateral development banks, bilateral financial institutions and carbon markets for energy efficiency projects in developing countries. The report makes eight recommendations on the design of climate and sustainable energy finance programmes to ensure that EE projects are adequately funded by climate finance.