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Climate finance readiness (CFR) is defined as the capacity of countries to plan for, access, deliver, monitor and report on climate finance, at national and international levels, in line with national development priorities and sustainable development goals (SDGs).
The UNFCCC COP 21 held in Paris committed mobilizing climate finance for developing countries for up to 100 billion USD per year. This annual funding target for developing countries for 2020 and several years thereafter has been reiterated and stated in the Paris Agreement. While several funding mechanisms have been operationalized to channel this climate finance, the Green Climate Fund (GCF) is currently the most important. The recently held COP 22 in Marrakech was an important transitional moment, pivoting from the years of negotiation that produced the Paris Agreement to a new phase focused on implementation.
The objective of LEAD’s Climate Finance Readiness Focus Area is to contribute towards enhancing the capacity of public and private institutions in Pakistan to access climate finance. While the main beneficiary of this work in Pakistan will be the Ministry of Climate Change (MoCC), the role of the private sector is also pertinent. The private sector can perform a critical role in building a low carbon and climate resilient future for the country by accessing international climate funding streams.
The CFR focus area is working to sensitize the private sector about climate investment by underlining its financial viability and profitability in the long run. Meanwhile, continued and systematic engagement will also be carried out with the other government and non-government institutions, including those seeking accreditation with the Green Climate Fund.
An effective framework for monitoring, reporting and verification (MRV) of climate finance is needed to understand what financial resources are flowing and for what purpose, and how effectively they have contributed towards climate resilience, reducing poverty, and meeting national development priorities.
In Pakistan, Non-Governmental Organizations (NGOs) and Civil Society Organizations (CSOs) can perform a significant role in MRV of climate finance spending. This is important to build the trust of the funding body, as well as to evaluate how effectively funds are used. The CFR focus area is thus working to communicate to NGOs and CSOs, their potential role in monitoring the flow and usage of international climate finance in Pakistan.
Major Initiatives under this Programme are;
1. Building Readiness of the Private Sector in Bangladesh for Green Climate Fund (GCF) Accreditation
2. Climate Public Expenditure and Institutional Review (CPEIR) for Pakistan
3.Monitoring, Evaluation & Learning (MEL) Programme of the UK Government International Climate Fund