this includes interventions that increase a country s capacity to mitigate or adapt to climate change or that improve the enabling environment for climate responses within the country costeffectiveness could also disadvantage certain types of interventions eg smallscale energyefficiency or countries eg sids where transaction costs would be relatively higher using costeffectiveness to assess the effectiveness of climate finance more broadly could lead to perverse incentives to channel financing to regions with lower transaction costs as opposed to greater need these concerns underlie calls from developing countries for needsbased as opposed to resultsbased financing in the unfccc negotiations eg lmdc and remarks by the philippines in usd