Reducing greenhouse gas emissions and increasing climate resilience through improved access to climate financing

Project description

Title: Climate Finance Readiness Programme – CF Ready
Commissioned by: German Federal Ministry for Economic Cooperation and Development (BMZ)
Country: Worldwide
Overall term: 2012 to 2019

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Context

Rising greenhouse gas emissions and the impacts of climate change are becoming increasingly noticeable worldwide. Storms in Bangladesh, droughts in southern Africa and water scarcity in Peru are becoming more and more frequent. Large investments are required to ensure that countries throughout the world reduce their emissions and adapt to climate change. Effective steering mechanisms for the investment flows from the Green Climate Fund (GCF) and other international funds as well as national sources of funding can ensure the success of the required transition towards low-carbon and climate-resilient development. 

Objective

In selected partner countries and at global level, conditions for the effective, transformative and efficient use of funds from international climate financing and the GCF have improved.

Approach

On behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ), the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH is supporting the work of partner countries to access international climate financing through the Climate Finance Readiness Programme (CF Ready). The programme is being implemented in cooperation with KfW Development Bank.

Since 2014, GIZ has also received support for implementation from the United States Agency for International Development (USAID) and the Ministry of the Environment of the Czech Republic. In addition, CF Ready has been a GCF implementation partner for readiness measures since 2017. The programme advises its partners on establishing the necessary institutions for the fund. It provides assistance for the process of selecting and setting up national institutions to gain access to the programme’s funds through accreditation. Through targeted measures, CF Ready enables these institutions to carry out effective climate programmes and thus achieve national climate targets.

The programme operates in 16 countries and one region in close consultation with the commissioning party and the co-financier.

The programme also delivers strategic advisory services, for instance for National Adaptation Plans (NAPs), national readiness roadmaps, climate financing strategies, national climate targets and country programmes. It refines these strategies so that they can be used as the basis for decisions on funding and integrated into national development plans. National climate targets (Nationally Determined Contributions, NDCs) in particular are incorporated into the advisory process.

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Results

So far, the programme has achieved the following results:

  • Support for national institutions: The programme has supported partners in seven countries in appointing national institutions such as the National Designated Authorities (NDAs) and in recommending institutions for accreditation with the GCF. It is assisting the designated authorities in nine countries, for example by providing training on the processes and latest developments of the fund, and supporting them in setting up coordination mechanisms. 
  • Support for direct access to the GCF: CF Ready is providing support during the accreditation process of national institutions for direct access to the GCF in nine countries. This includes developing and providing training on environmental and social safeguards. The programme has already established direct access in four countries.
  • Strategic support for partners: The programme is providing support in adapting strategies for climate change and development in nine countries. For instance, feasibility studies have supported the establishment of a pipeline for emissions reduction projects in Viet Nam, the pricing of carbon in Peru, and the development of a plan for the NDC partnership in Uganda.
  • Development of global activities, tools and studies: CF Ready has developed a self-assessment tool for admission to the GCF. It has also provided climate funding training and a special training course for sector experts. In cooperation with the World Resources Institute (WRI) and the GCF, the programme provides training on environmental and social safeguards. CF Ready has completed an initial study on transformation for climate action.