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 climate-related results (OECD, 201 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 performance/existence of specific national institutions can also affect whether a country meets the safeguards introduced by selected climate funds to limit potential negative impacts (e.g. social) of climate interventions, or to ensure that specific standards (e.g. fiduciary standards) have been met. However, there are several related challenges at both the national and international level.