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.

1. Enhancing access to international climate finance
Pieter Terpstra – World Resources Institute – pterpstra@wri.org
Assessing
Green Climate Fund
Readiness

2. Contents
• Needs Assessment Process and Results
• GCF Readiness Program
• Next Steps

4. 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

5. 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

6. 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

7. 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

8. 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.

9. 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

10. 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.

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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.

17. 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

18. Thank You
Contact: Pieter Terpstra, pterpstra@wri.org