International policies, including the Paris Climate Agreement, are calling for increased mobilisation and upscaling of financial resources to support developing countries strengthen their climate change adaptation and mitigation responses. This opens up new windows of opportunity for funding for Pacific Island countries (PICs). However, gaps in national finance systems and Public Finance Management (PFM) processes of PICs could hinder their access to flexible climate change finance modalities including budget support. Addressing these gaps is fundamental to enable PICs to access and effectively manage climate change finance. Specific assistance and capacity development are required targeting institutions, public financial management structures and expenditure systems.
Approach and key expected results
Climate change finance readiness includes elements of support that are ‘finance specific’ and other elements of support that are ‘climate change specific’, or ‘sector specific’.
The ability to access climate change finance – as with other external finance – depends on robust financial management systems that give financial institutions confidence that governments can manage, disburse, utilize and report on finance provided. Having ‘ready to go’ climate change projects based on national strategic programmes, frameworks and priorities is critical to being ready to access new funding opportunities fast. It is also crucial for the effectiveness of adaptation projects and for accessing climate change finance to ensure that people are at the heart of the adaptation processes and that the various needs and priorities of different groups are addressed.
Within this context the project will work with the project countries and national and regional partners and utilise existing and ongoing processes such as Public Finance Management (PFM) reforms and the Pacific Climate Change Finance Assessment Framework (PCCFAF) led by PFTAC and PIFS.
Friday, January 1, 2016
Monday, December 31, 2018