What is Climate Finance Readiness

Climate finance readiness reflects a country’s capacity to (1) plan for, (2) access, and (3) deliver climate finance, as well as (4) monitor and report on expenditures.

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Climate Finance Readiness
The Green Climate Fund (GCF) was established by the Conference of the Parties to the UNFCCC in 2010 as the principal financial resource to help nations cut carbon and protect themselves against the impacts of climate change. It is expected to become the main global fund for financing climate change mitigation and adaptation in developing countries in the coming years. As such, it will channel significant amounts of funding required to support developing countries to adapt to the impacts of climate change and to limit or reduce their greenhouse gas emissions.
It is widely recognized that direct access to the GCF funds will require a level of capacity by governments and other actors involved, in order to prepare national mechanisms to access, allocate, disburse, and report on climate finance. These mechanisms must be compatible not only with the Green Climate Fund requirements, but also with the country’s planning, budgeting, programming and monitoring procedures and systems.  In addition, countries’ institutional mechanisms related to the GCF funds will need to be compatible with their existing and future planning and budgeting systems, and be fully integrated with the countries’ national plans, policies, and sustainable development priorities. In other words, developing countries will need to “get ready” for GCF financing.