Investment Needs Identification and Prioritization

While NDCs outline national targets for mitigation and adaptation, not all countries have fully formulated the required investments and enabling conditions necessary to facilitate alignment of financial flows with the Paris Agreement goals and the Sustainable Development Goals (SDGs).

Critical to aligning NDC targets with finance is the identification of NDC investment needs. This is ideally done through participatory and inclusive processes to outline a well-defined set of investments designed to unlock actions required to achieve NDC targets. Once needs are assessed, a costing and financing gap analysis can assist with the understanding of the magnitude of investments needed across national priorities. Furthermore, the mapping of existing financial flows, both public and private, allows for the understanding of current resource allocation and existing gaps to finance the implementation of the NDCs.

While climate action is urgent, not all actions can be implemented at once. Through the prioritization of investments and supporting activities, resources can be optimized and channeled into areas with clear climate rationale, for their transformational impact, and which advance national development priorities. Consistent and transparent multi-criteria assessment informed by qualitative and quantitative data provides a framework for assessment of potential investments and their contribution to NDC targets, sustainable development goals, and the feasibility of delivery.