1. 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

2. 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

3. The NAP Process from a Financing Perspective

4. 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

5. 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

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

7. 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

8. 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)

9. 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

10. 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

11. Resource Guidebook on financing NAP processes
content/uploads/2017/08/napgn-en financing-nap-processes.pdf
Upcoming…
Webinar series
Case studies

12. www.napglobalnetwork.org info@napglobalnetwork.org
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