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Resource guide for NDC finance

Selecting effective financial instruments to support action on climate change

This low emission development strategies (LEDS) Finance Resource Guide presents a curated selection of resources on a range of topics around finance for LEDS and Nationally Determined Contributions (NDCs). It is designed to help LEDS practitioners find high-quality resources that meet their specific needs, avoiding time-consuming searches on the internet. It will be useful to individuals working on, or interested in, LEDS and NDC finance in both developed and developing countries.

Download the full pdf version of this guide.

2.1 Institutions and governance

Countries seeking to develop comprehensive approaches to LEDS and NDC finance will need to put in place the right institutional arrangements. Many countries have begun this process and different approaches are emerging. The resources here and in the following subsections provide insight into the different models emerging and lessons learned so far.

Related resources

Getting it together: Institutional arrangements for coordination and stakeholder engagement in climate finance

Organization(s):ODI

  • Institutions and governance

This paper analyzes the arrangements that have emerged in Colombia, India, Indonesia, the United Kingdom, and Zambia to draw lessons on the conditions that facilitate or impede coordination across institutions and actors. Section 2 of the paper distils key insights from the literature and theory on institutional coordination for understanding the institutional arrangements that have emerged in the five case study countries. Section 3 analyzes these arrangements and their modalities, seeking to highlight lessons and good practices. Section 4 of the paper concludes with core functions of coordinating institutions, and recommendations for both national and international actors seeking to strengthen domestic arrangements for climate finance.

Topic guide: A guide to national governance of climate finance

Organization(s):DFID/IEED

  • Institutions and governance

This guide is intended for advisors within the UK Department for International Development (DFID) working in country, but it also provides a useful general overview of climate finance sources and actions to access them. In particular, section 1.2 of the guide (9 pp) looks at the role of different national actors in climate finance (agencies, national development banks, national climate change funds, etc.), and section 1.3 briefly covers planning and budgeting systems.

After Paris: What is next for Intended Nationally Determined Contributions (INDCs)?

Organization(s):NewClimate Institute

  • Institutions and governance

This brief paper outlines at a high level what the Paris Agreement means for INDCs, and what needs to happen at the country level now and in the longer term to implement the Agreement. The paper focuses explicitly on the mitigation part of national contributions and discusses specific steps, including several with a specific finance or institutional aspect. It is useful as a simple guide to what needs to happen next, setting the broader context for the development of approaches to financing LEDS and NDCs.

Public spending on climate change in Africa: Experiences from Ethiopia, Ghana, Tanzania and Uganda

Organization(s):ODI

  • Institutions and governance,
  • Managing national finance

Chapter 11 of this report, ‘Lessons for institutional strengthening’, is on lessons learnt from the four study countries that point the way towards institutional pathways for effective climate change finance delivery in Africa. Six cross-cutting lessons were identified from the institutional analysis made in each of the country studies: 1) reforming the institutional framework in response to climate change; 2) establishing clarity over institutional mandates; 3) strengthening the programming of climate change actions; 4) ensuring adequate allocation of human resources; 5) delineating environmental and climate change programs; and 6) recognizing the central role of finance ministries in climate change finance delivery.

A methodological guidebook: Climate public expenditure and institutional review (CPEIR)

Organization(s):UNDP

  • Understanding current flows,
  • Assessing capacity,
  • Institutions and governance,
  • Managing national finance

This guidebook seeks to equip relevant stakeholders (governments, donors, CPEIR practitioners) with information on methodologies and tools to conduct a CPEIR, the objectives of which include tracking of climate finance and quantification of climate related expenditures in the budgetary system. The publication was developed based on experiences and lessons learned from existing CPEIRs. It provides readers with background on context, purpose, process, and tools in implementing a CPEIR, together with an overview of the key challenges typically faced during CPEIR implementation. Section 6.3 of the guidebook provides guidance on tracking public climate expenditure.

Country case study

Getting it together: Institutional arrangements for coordination and stakeholder engagement in climate finance

Organization(s):ODI

  • Institutions and governance

See the examples of Colombia, India, Indonesia, UK, and Zambia in the Overseas Development Institute’s report Getting it together: Institutional arrangements for coordination and stakeholder engagement in climate finance.