A report by the United Nations Development Program (UNDP) provides the fundamentals of climate finance readiness.
The paper defines climate finance readiness as “the capacities of countries to plan for, access, deliver, and monitor and report on climate finance, both international and domestic, in ways that are catalytic and fully integrated with national development priorities and achievement of the MDGs.” The report presents a framework that can help a country identify its existing strengths, efforts as well as potential gaps in terms of readiness to access international climate finance. The authors describe four main components in the readiness framework – namely the ability to a) make financial plans, b) access finance, c) deliver finance (project/programme implementation) and d) monitor, report and verify (MRV). For each of the four areas, the report describes the detailed components, requirements and relevant steps to be taken. For instance, with regard to financial planning, the framework highlights the need to identify potential funding sources. With regard to MRV related to mitigation, the framework includes the need to be able to prepare a GHG inventory. The report also mentions specific tools that can help decision makers in Developing Countries in their preparations for receiving international financial support.
The original report can be found here.
Image courtesy of USAID Asia.