1. Climate Finance Readiness: Lessons from Developing Countries
6 October 2014
NDB Workshop, Washington DC
Prepared by: Chantal Naidoo, Senior Associate
E3G – Third Generation Environmentalism /

2. Climate finance as a bridge to economic transformation?
Strong momentum building in both developing & developed countries for climate action – regardless of the negotiation contexts
Resources are available at various levels although their adequacy and predictability may be in question
Ambitions in accessing finance for climate action
Short term v long term
International pressure v national imperatives
Standalone actions v economic integration
Playing fields are not level in developing countries
Complex interaction of multiple variables
Readiness / preparatory activities play a key role
October 2014

3. Theme #1: Planning and national contexts
Political leadership – planning & accountabilities
Structure of economy and current challenges/opportunities
National development priorities – job creation, conflict, economic priority shifts
Climate vulnerabilities & needs (infrastructure, dependencies)
State and structure of the domestic financial system
Integration across government planning – national and sub-national
Country examples:
LAC e.g. Colombia, Peru
Africa e.g. Ethiopia, Mali, Zambia
October 2014

4. Theme #2: Process and stakeholders
Multi-stakeholder engagements - developing a cohesive country proposition
Public and private sector relationship - existing v future potential
Involvement of international development partners – existing v future potential
Awareness and building among key stakeholders – govt, private sector, CSOs
Deepening impact – national and sub-national level
Country examples:
LAC e.g. Peru, Colombia, Chile
Africa e.g. South Africa, Ethiopia
October 2014

5. Theme #3: Institutions and then what?
Institutional strengthening – natural extension of expanded government mandates
Innovations emerging at institutions – national funds, new products
Identification of appropriate entities and partners to support government
Shift towards programmes v individual projects – scale and replication vision
Accreditation for specific funds major focus – going through process
Country examples:
LAC e.g. Peru, Colombia
Africa e.g. Ethiopia, Namibia, South Africa
October 2014

6. View #1: Focus on a particular fund / financing proposal
Investment
Allocation
Risk
Institutions
Reporting
For example: would a country may be ready if it has …
A climate investment plan aligned with its national development priorities that is supported by multiple stakeholders at country level with defined priorities that are aligned to core investment criteria – with a specific funding request ($$$) and where possible, identification of the key instruments needed for implementation (i.e. loans/grants/other) and implementing partners that are accredited by the Fund

7. View #2: Long term economic transformation
Readiness for what?
Source: “Resourcing NAMAs – Stepping stones in a national climate financing strategy”, June 2014,
October 2014

8. Where do NDBs fit into readiness?
TRANSLATOR of government policy
DEVELOPER of programmes
INNOVATOR on financial products
BRIDGE public and private sector
INTEGRATOR of development and climate
GENERATOR of policy feedback loops
October 2014