Enabling access to climate finance: knowledge transfer, networking & innovation
Title: Partnering for readiness – GIZ’s contribution to implementing GCF’s readiness 2.0 approach
Commissioned by: Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH
Overall term: 2020 to 2022
The Green Climate Fund (GCF) is the financing mechanism of the United Nations Paris Agreement. It supports partner countries in implementing their Nationally Determined Contributions (NDCs). For the funding to be effective, partner countries and their institutions must be ready to manage the funds efficiently and put them to good use.
In 2014, the Green Climate Fund launched the Readiness and Preparatory Support Programme (RPSP) to develop capacities in partner countries and ease their access to climate finance. This has already enabled a large number of national institutions to obtain accreditation for direct access to the GCF’s climate funding. However, the accredited institutions only implement 26% of GCF projects in partner countries at present. International development partners manage the remaining 74%. For the Green Climate Fund to be a successful joint instrument, it is crucial that the partner countries and their institutions can independently access and implement climate funding (readiness).
In February 2019, the Green Climate Fund therefore decided to revise its support programme under the name ‘Readiness 2.0’. The focus is on developing national strategies and supporting transformative projects that have specific investment plans. In this context, the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH is contributing to the implementation of the programme and sharing experiences on effective readiness measures in partner countries. This improves the countries’ possibilities for setting up structures to implement climate projects independently and reach their climate targets.
Local stakeholders and companies in the partner countries make more effective use of international climate funds.
The project supports the partner countries in improving their access to the Green Climate Fund and implementing effective climate projects independently. It serves as a knowledge and innovation lab, working on new options for climate finance. The project supports international networking and promotes learning from each other.
The project has three functions:
- Lab: Together with other stakeholders, it develops innovative approaches to improve climate finance management in partner countries. It also plays a role in the international discourse: a central topic is combining the readiness measures for the Green Climate Fund with Nationally Determined Contributions.
- Coordination centre: The project acts as central multiplier for successful approaches that ease access to climate funding. It supports potential contributions to readiness approaches and promotes communication between readiness implementers and the GCF readiness team.
- Knowledge hub: The project compiles GIZ’s experiences relating to readiness for access to the Green Climate Fund. This knowledge is made available to the international community at conferences, through studies and using digital tools. In addition, the project encourages dialogue and networking between stakeholders of national institutions on the topic of international climate finance.