A Financing Perspective on the NAP Process Coordinating Climate-Resilient Development A Financing Perspective on the NAP Process Jo-Ellen Parry September 6, 2017 San José, Costa Rica

Introduction Financing is needed: Throughout the NAP process To cover two types of costs: » Operating costs » Investment costs The amount of financing needed: Will vary from country to country Expected to be significant

The NAP Process from a Financing Perspective

Differences between the phases: Amount of financing required Greater financing needed in the implementation phase Actors involved Development phase: Primarily government Implementation phase: Involves a broader range of government and civil society actors

Potential sources of finance for the Implementation Phase Countries will need to combine financing from different sources National and sectoral budgets Sub-national budget Domestic climate change funds Private enterprises Private financiers Domestic Bilateral providers Multilateral climate funds Non-climate focused multilateral funds Multilateral development banks International Public Private

Domestic Government Revenues Financing options: Domestic Government Revenues Advantages: » Relatively predictable and consistent » Enhance national ownership » Flexibility » Potential to leverage other sources

International Public Sources Financing options: International Public Sources Bilateral providers » Flexible: sectors and instruments » Promote innovative approaches Multilateral providers » Diversity of potential sources » Different funding modalities Multilateral Development Banks » E.g., for single large projects » Can catalyze finance from other sources

Private sector Financing options: Experience to date is limited Main sources of private sector finance: » Private financiers (direct) » Private enterprises (indirect) Guidance for the public sector: » Increase understanding of the sector » Identify entry points in the NAP process » Make the business case » Provide non-financial incentives (e.g., tailored communication products, capacity building) » Provide right economic signals » Catalyze private investment (e.g. PPPs)

Dedicated NAP Financing Strategy Can help align financing needs with potential sources of financing Promote a planned, coordinated and coherent approach to securing finance The strategy should be: » Developed early in the NAP process » Tailored to country circumstances » Aligned with other initiatives, such as NDCs

General guidance From the start, consider financing needs Engage key stakeholders early and continuously Ensure senior-level engagement Recognize the critical role of domestic finance in sustainably financing the process Engage the private sector through targeted strategies Tailor strategies to national circumstances and capacities

Resource Guidebook on financing NAP processes http://napglobalnetwork.org/wp- content/uploads/2017/08/napgn-en- 2017-financing-nap-processes.pdf Upcoming… Webinar series Case studies

www.napglobalnetwork.org info@napglobalnetwork.org Twitter: @NAP_Network Financial support provided by Secretariat hosted by