Resource Guide for NDC Finance

Resource Guide
for NDC Finance

Selecting effective financial instruments to support action on climate change

This guide presents a curated selection of resources on finance for Nationally Determined Contributions (NDCs) and Long-term Strategies (LTS). It is designed to help Global Climate Action Partnership practitioners find high-quality resources that meet their specific needs, avoiding time-consuming searches on the internet. It will be useful to individuals working on, or interested in, NDC and LTS finance in both developed and developing countries.

2.2 National finance strategies

Achieving the necessary scale and pace of sustainable investment needed requires a strong and credible political commitment to build investor confidence in the long term sustainability of policy frameworks, underpinned by a dynamic and coordinated policy and financing strategy. A national finance strategy aims to help countries define their overall climate resilient development objectives and set out potential means to finance them. The focus is on how international and national public finance can be deployed alongside policy initiatives to maximize the ‘crowding-in’ of private capital to deliver climate resilient development aims. (Adapted from Considerations for a climate finance strategy in Chile, E3G, 2016.)

This paper describes the emerging strategic approach of national financing pathways and strategies for climate finance. In essence, this refers to the outcome of a process whereby a country determines, defines, and mobilizes the financial and other resources necessary for its transition to a low emission and climate resilient development path. The concept is explained in greater detail in chapter 4 of the paper, which also sets out E3G’s perspectives on emerging diagnostic tools that may be applied, and core principles that may be relevant for developing countries to consider when developing a national financing pathway.

‘National financing pathways’ are put forward here as a concept that articulates the interdependencies between public, private, and international sources of finance as a means of delivering scaled investment to support implementation of low emission and climate resilient development. Based on discussions with representatives in Chile, Colombia, and Peru, this working paper identifies emerging issues that may influence a national financing pathway, and considers different frameworks and tools to develop such pathways.

    Considerations for a climate finance strategy in Chile

    Organizations: E3G
    National finance strategies

    The Government of Chile has committed to putting in place a national finance strategy for climate change by 2018, and is just at the beginning of considering how to develop it. This report sets out a framework with which Chile could start to develop its own national finance strategy. It offers recommendations for how this approach could be taken forward—including identifying where further research and dialogue with key stakeholders is needed. The analysis is based on scoping work undertaken in Chile during 2012–14. This has been supplemented during 2015–16 by further in-depth analysis and stakeholder consultation to understand the challenges and opportunities for Chile as it moves forward to build a climate resilient economy.