Role of Climate Policy and Law in Climate Finance Readiness


Between the 8th and the 10th of October, 2018, the GCF Readines Programme convened experienced practitioners (national coordinators and/or technical experts), and Readiness delivery partners.  The purpose of the workshop was to reinforce the iterative knowledge management process of implementing GCF readiness activities in countries with different socio-economic, political, geographic, and climatic contexts. Readiness support globally is reaching maturity and it was therefore timely to take stock of results and challenges to-date and feed these into new approaches for accessing GCF funds. The workshop served to take stock of the key lessons and challenges learned during the implementation of GCF Readiness initiatives in different countries. Participants presented how the support was applied, which tools were used, and the results and lessons over the course of interactive sessions.
Climate Policy and Law as instruments for finance readiness:
Climate Policy and Law in El Salvador - Carlos Gómez, GCF Readiness National Coordinator in El Salvador- Download the presentation here.

When the project started El Salvador had a Climate Change Policy, a National Climate Change Strategy and a National Climate Change Plan, but it lacked the climate sectorial policies and a Climate Finance Strategy. So, they worked on policies for 2 sectors which contribute significantly to carbon emissions and are the main recipients of public spending on climate change: (i) energy and transport and (ii) agriculture forestry and land use. They also conducted a study of current public investment in climate change for both sectors and developed a new agricultural policy incorporating climate change risks and solutions.  

The following lessons can be drawn from El Salvador’s experience in climate policy and law:

  • Policies should be created and adapted to individual country needs
  • Selection of priority sectors to be targeted by these policies should be agreed by governing bodies at national and sectorial level. 
  • Stakeholder engagement is crucial in creating and applying a national climate policy/law.

The main challenge currently faced by El Salvador will be to maintain the support for climate change initiatives after the change of government in March 2019

Climate Policy and Law in Benin - Marius Gandonou, GCF Readiness National Coordinator in Benin - Download the presentation here.
Mr. Gandonou explained that in many African countries including Benin, the process of passing a new law can take anytime between 5 to 10 years. The process entails convincing the relevant government bodies and stakeholders of the importance of the specific law. However, with the Programme’s support, a Climate change law was drafted and passed on the 18thof June 2018 by the Parliament of Benin within a span of only two years. Mr. Gandonou noted that it was more efficient to align the emerging policies and laws with current national plans such as National Adaptation Plans or National Development Plans.

Some of the challenges faced by Benin are:

  • How to successfully transition from planning to actual mobilization of resources for climate change action
  • A  myriad of guidebooks on climate change have produced for Benin by different entities, including UNDP and government entities. These guidelines should be condensed into one document so that they could be used more effectively and avoid duplication.
  • Integrating specific budget lines for climate change into the national budget is currently not possible unless it becomes a requirement by the law.