Stage 3

Financing Strategy

Building upon a set of prioritized investment needs, a country can conduct a more in-depth analysis of financing gaps, explore financing options, identify barriers and solutions, and assess the comparative advantages of different sources of finance.

With this comprehensive understanding, a country can engage potential sources of finance and project proponents to ascertain which financing options are best suited for various investment needs. The targeted outcome of this stage is a financing plan for a country’s NDC-, NAP-, and LT-LEDS-prioritized investment needs, identifying pathways to best-fit finance.

Outcome

A structured financing plan identifies the best-fit financial pathways to support a country’s prioritized NDC, NAP, and LT-LEDS investments, ensuring effective resource mobilization for climate action.

Types of support

The following describes potential support needs related to Stage 3 of the Framework.

  • Map available international, national, public, and private financial sources to address investment needs.
  • Assess the requirements and suitability of financial sources based on climate objectives and availability of funding sources.
  • Identify investment landscape and opportunities

  • Identify financial instruments and mitigation measures to overcome investment barriers.
  • Leverage policy and regulatory changes to create enabling environments that facilitate investment and sustainable development.