Investment Mobilization

Once sufficient capacity is in place and investment needs identified and prioritized, it is essential to plan for investment mobilization. This requires optimizing scarce public financial resources and improving the enabling environment to incentivize private sector engagement. An assessment of barriers to investment is critical to identify the factors that limit resource mobilization against the priorities defined. Outlining the policies, regulations, and financial instruments that improve enabling environments and the risk-return of NDC investments contributes to both improving policies and regulations over time and increasing the confidence of investors.

The Partnership supports members to identify, design, and implement resource mobilization vehicles, including national climate change funds, green bonds, blended finance facilities and others that mobilize larger amounts of capital towards NDC-aligned investments.

Building off the identification and prioritization of investment needs, countries can elaborate a pipeline and project road mapping, sorting opportunities by readiness and existing financing support. The sequencing can be done to develop a strategy to finance NDC projects and supporting activities in the short, medium, and long term that can optimize quick gains and streamline NDC implementation progress.

Project preparation then moves investments from idea to bankability, noting the appropriate sources of funding. This includes pre-feasibility and feasibility studies, project governance and risk allocation, costing and budget preparation, and gender and socioenvironmental impact analysis. The Partnership is stepping up its support across the project development cycle, including support to countries’ efforts to identify and prioritize NDC-aligned projects, and further specify project needs through its Project Checklist and Project Information Notes (PINs). These are meant to improve the availability of information on project status, characteristics, and support needs, and mobilize resources to move them along the investment cycle by leveraging member and other stakeholders’ resources.

Development partners, institutions, and private investors each have their own priorities, requirements, and processes to identify investment projects and provide funding to such projects. Developing countries highlight the complexity of navigating the various requirements, budget cycles, and processes of different partners providing finance.  The Partnership supports members in matching sources of finance against financing needs to leverage national public financing, donor funds, private sector investment, and blending arrangements to scale up climate finance.