Day 2 of the Regional Meet of National Designated Authorities & Accredited Entities on “National Experiences of Accessing and Programming Resources from the Green Climate Fund in South Asia” explored the means to engage private sector, investment criteria for GCF proposal development and learning opportunities between South Asia. Here are seven insights from the discussions:
Paradigm shift: The group recognised the country, context and sector specific nature of this investment criteria. For example, Bangladesh’s proposal understood it as a way to sustain and increase livelihoods amidst irreversible climate shocks whereas Bhutan viewed it through the lens of a sustainable financing model that includes a transition fund with incremental government contribution to meet the current as well future financing needs.
Co-financing: It needs to go beyond identifying different models of finance to consider different approaches as well as the process of co-finance. Donor profiling, identifying different sources of public as well as private finance including funds from philanthropic foundations, engaging private sector by de-risking investments, lucrative business case to invest in business opportunities around resilience are some of the ways to strengthen the GCF proposal.
National Implementation Entities: They are an important institution that allows a country to take the ownership of the GCF funding process. Countries should look to develop their own entity that can contribute to their capacity to access climate funds and implement relevant project for climate change adaptation and mitigation. Some of the main challenges faced by them are:
Question of accreditation: It’s a long process that requires the applicant needs to be perseverant in the face of multiple demands made by approval committees.
Selection of NIE: The applicant country must select the accrediting agency carefully. It is important for the accredited entity to demonstrate the capacity to develop GCF proposal and implement project in line with their country program.
Technical capacity: Engaging the country government in the proposal development process aids their capacity development and ownership. They should be involved in writing core elements of the proposal, data collection, understanding review process and comments from GCF.
Institutional capacity: Engaging focal points and champions across the government hierarchy- at technical level as well as influential level, strengthens the M&E processes of the government.