furthermore there are additional reasons why donors may prefer not to use country systems such as the ability to account for taxpayer funds and the need to track climaterelated results oecd la as transaction costs reduce the total amount of climate finance devoted to climate activities reducing them can increase the effectiveness of climate finance the performanceexistence of specific national institutions can also affect whether a country meets the safeguards introduced by selected climate funds to limit potential negative impacts eg social of climate interventions or to ensure that specific standards eg fiduciary standards have been met however there are several related challenges at both the national and international level