Assessing Green Climate Fund Readiness

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A framework to assess climate finance readiness and initial results from four readiness assessments for the UNEP/UNDP/WRI GCF Readiness Program. Presentation by Pieter Terpstra, WRI Vulnerability and Adaptation Initiative.

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Assessing Green Climate Fund Readiness

  1. 1. Enhancing access to international climate finance Pieter Terpstra – World Resources Institute – pterpstra@wri.org Assessing Green Climate Fund Readiness
  2. 2. Contents • Needs Assessment Process and Results • GCF Readiness Program • Next Steps
  3. 3. Conceptual Framework A. National climate context, vulnerabilities and opportunities B. Enabling Environment B1. Public B2. Private C. Delivery of results D. Information management and coordination E.Managingforresults Climate finance
  4. 4. GCF Readiness Process 1. Identification of target countries based on adaptation needs and mitigation opportunities 2. Target countries: El-Salvador, Colombia, Ghana, Benin, Fiji (four will be added this year) 3. Pre-mission needs assessment – desk study 4. Country mission - Identification of needs to access and manage climate finance for low-carbon, climate resilient development 5. Development of draft GCF Readiness Plan, validation of results and final approval
  5. 5. Assessment framework A. National Climate Context, Vulnerabilities and Opportunities B. Enabling Environment B1. Public B2. Private - Policies and programs - Legal framework - Institutions - Financial framework C. Delivery of Results - Mobilize and allocate resources - Implement planned activities - Fiduciary standards & safeguards - Private sector awareness and opportunities - Develop investment opportunities D. Information management and coordination E.Managingforresults
  6. 6. Preliminary findings for five countries Component Needs Support needed? A. National context -- NAPAs, NCs, vulnerability analyses, etc. available B. Enabling Environment 28 Public: - Mainstreaming climate change - Policies focused on private sector Private: - Identify and remove barriers for investment C. Delivery of Results 37 - Identify NIE, support in meeting access criteria - Development of investment opportunities D. Information management and coordination 28 - Strengthen inter-agency and sectoral coordination - More information on climate change and opportunities - Cost benefit analysis / decision making E. Managing for results 17 - Tracking of finance and impacts - Evaluation and monitoring
  7. 7. Work package – A: Institutional Support Package A: Building the institutional capacities of countries, with a focus on enabling direct access and on mobilizing and managing climate finance • Module 1: Map institutional context and strengthen capacity of national climate/-finance institutions for managing adaptation and mitigation finance across various institutions and levels. • Module 2: Develop national and / or sectoral financial plans detailing financial needs related to climate change and how climate funds can be allocated.
  8. 8. Work package – A: Institutional Support • Module 3: Assisting countries in identifying, establishing and strengthening implementing entities (IE) and national designated authorities (NDA) in order to access climate finance • Module 4: Develop systems for national and sub- national monitoring and reporting on climate finance including its results • Module 5: Establishing links between national readiness activities and ongoing global processes
  9. 9. Work package – B: Pipeline development Package B: Preparation of pipeline of bankable projects and programs • Module 6: Facilitating national climate investment consultations • Module 7: Preparing guidelines and tools for assessments, identification and formulation of proposals for funding. • Module 8: Support the preparation of a pipeline of climate projects and provide them with targeted technical and financial support in order to make them bankable.
  10. 10. Work package – B: Pipeline development • Module 9: Training local financial institutions to build up the skills required for climate related investment activity • Module 10: Providing technical assistance and funding support to local financial institutions to develop new financial products and services for prioritized climate sectors
  11. 11. Draft GCF readiness plans Example A. Natl. Context B. Enabling Environment C. Delivery of Results D. Information Management & Coordination E. Managing for Results 1. Strengthened coordination to manage and deliver climate finance - Feasibility study for National Fund - Strengthening of regulations, policies and plans - Implement coordination guidelines - Increase stakeholder access to information 2. Enhanced institutional capacity to align with international benchmarks and safeguards - Identification of NIE(s) for AF and GCF access - Strengthen possible NIE - Training on CF readiness and fiduciary requirements 3. Strengthened systems and human resources to identify, prioritize and develop programs and projects - Procedures for prioritizing needs and interventions - CBA tools and systems in place - M&E system strengthened 4. Engaged private sector and systems in place to attract private sector resources towards climate change goals - Mapping private sector gaps and opportunities - Facilitate private sector engagement
  12. 12. Findings • Climate Finance Readiness Challenges: – Mainstreaming climate into national plans and sectoral policies – Translation of plans and policies into investment opportunities – Coordination between different stakeholders – Enhancing public and private access to climate finance – Information management and M&E
  13. 13. Next Steps • Approval of GCF Readiness Plans • Start implementation of readiness activities in June • Needs assessment missions to four new countries • Coordination with other organizations
  14. 14. GCF Board decision on Readiness Decision GCF/B.06/14 (February 2014) outlines provision of support to four high‐priority readiness activities: (a) Establishment of a national designated authority or focal point (b) Development of strategic framework for engagement (c) Selection of intermediaries or implementing entities (d) Initial pipeline of program and project proposals
  15. 15. Guiding principles GCF Readiness (a) Provided in a country-driven manner and promote country ownership as a core principle of the Fund; (b) Purposeful and collaborative, aimed at building lasting institutional capacity within countries rather than relying excessively on external expertise and international institutions (c) Flexible to accommodate the diverse needs and characteristics of different countries; (d) Iterative, continuously adapting and improving based on results and lessons learned; (e) Coherent with and complementary to existing initiatives and sources of support; (f) Inclusive of relevant stakeholders, considering both the public and private sectors; (g) Gender-sensitive; and (h) Transparent.
  16. 16. German GCF Readiness Support  The Government of Germany committed funding for readiness support for the GCF in Durban  The Federal Ministry of Environment (BMUB) and the Federal Ministry for Economic Cooperation and Development (BMZ) each administer the program  Support for access and management of climate finance, pipeline development
  17. 17. Thank You Contact: Pieter Terpstra, pterpstra@wri.org

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