In future, a substantial proportion of climate funds will be channelled through the international Green Climate Fund (GCF) set up under the United Nations Framework Convention on Climate Change (UNFCCC). Expectations attached to the GCF are high: the Fund is intended to make a significant contribution to efforts to reduce greenhouse gas emissions and adapt to climate change while promoting a paradigm shift towards a low-carbon and climate-resilient society. In order to ensure that recipient countries are able to benefit fully from the GCF from the outset, the countries have to make appropriate preparations with regard to how funds will be used.
The current climate finance landscape is highly complex. There are a variety of multilateral funds, bilateral initiatives and national trust funds with different requirements and access criteria. Partner countries are often not in a position to exploit existing opportunities to finance climate Change mitigation and adaptation measures. For this reason, many developing countries have requested support in accessing climate change funds and putting the available resources to use.
In over 25 projects, GIZ is advising partner countries with the aim of enhancing their ability to access climate finance, administer the resources and use the funds effectively and efficiently – with no risk of corruption. This support is tailored to the specific situation at regional and national level and adapted to meet demand.
GIZ provides a range of support services in the field of climate finance, including:
- developing plans and strategies on climate issues, for instance as the basis for decision-making on financing;
- establishing institutions and developing the technical and organisational capacity of climate finance organisations in order to promote more effective use of climate funds;
- providing information on international climate funds and their access criteria;
- fostering the transparent and effective use of climate funds;
- engaging the private sector.
You can find out more about the results of our work on the individual websites of our projects:
Climate Finance Readiness programme (CF Ready). CF Ready provides support in accessing international funds and making effective use of climate finance. It operates on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ) and is co-financed by USAID and the Ministry for Environment of the Czech Republic. CF Ready does not provide partner countries with direct funding, but rather supports them in accessing financial resources through the Green Climate Fund (GCF) and other climate funds and assists them in their preparations for the application process. The programme thus makes a practical contribution towards the efficient, targeted use of funding. It is implemented jointly with KfW Development Bank and also cooperates with other readiness programmes and the Green Climate Fund Secretariat.
Further information:CF Ready
Promoting private sector investment in climate activities
In order to ensure a sustainable and effective response to the challenge of climate change, the private sector must be brought on board. Currently, the potential for private investment in climate-friendly, low-emission development is not being fully exploited, particularly in developing countries.
GIZ is promoting private sector development in developing and emerging countries through technical cooperation. This includes:
- supporting governments in establishing a good investment climate in the country by helping them in their efforts to implement market-based instruments, such as taxes and emissions trading, and to develop incentives for green investment;
- facilitating dialogue between public and private institutions;
- supporting financial institutions, for example in developing financial products to promote low-emission, climate-resilient investment;
- supporting professional associations and private companies with activities such as establishing sustainable supply chains and carrying out market analyses in relation to green products.