Financing the implementation of a national climate policy is a costly endeavour. Globally, the implementation of the submitted (Intended) Nationally Determined Contributions (NDCs) is estimated to cost as much as USD 4.4 trillion. Against this background it is obvious that countries seeking to embark on a low-emission, climate-resilient development path will require funding from a variety of sources.
While many countries already have climate change-related policy documents in place, which are often and most recently expressed in NDCs, implementation is a challenge not only due to weak pipelines of bankable projects generally but also due to a lack of capacities and funding. A strategy to mobilise and access climate finance is thus crucial and may be one of the missing links in moving from planning climate action to implementation.
The Climate Finance Readiness Programme has gained valuable experience in advising countries on climate finance and financing strategies since its inception in 2013. Implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) the Programme is financed by the German Federal Ministry for Economic Cooperation and Development with co-funding from the United States Agency for International Development, the Czech Ministry of the Environment and the Green Climate Fund. A number of its partner countries have requested support for financing strategies, and the objective of this document is to identify the key building blocks of such an approach, present the Programme‘s practical in-country experiences and outline some pragmatic lessons learned for the future.