Component 2
Concept preparation for public and blended finance
Concept preparation for public and blended finance is crucial for achieving climate objectives because it lays the groundwork for well-structured, bankable projects that align with national climate priorities and attract diverse sources of funding.
Early-stage concept development ensures that climate investments are strategically designed, technically sound, and aligned with country systems and policy frameworks. It also allows for the integration of climate risk assessments, MRV components, and stakeholder engagement, increasing the likelihood of financing from public budgets, development banks, and private investors.
Step 2
Engage with relevant finance stakeholders to develop projects
The next steps will often involve developing project/program concepts as part of either an investment program or plan with the specific finance partner—such as MDBs, climate funds, and private investors. The best channel and outcome of the engagement should be discussed with the relevant financing partner and project proponents. Depending on the financier and the nature of the intervention, the analytical work underpinning the investment design may require technical assistance. In some cases, blended finance mechanisms can be employed, combining public- and private-sector funding to de-risk projects and attract additional investments. It is important to develop concepts closely with the financier to ensure alignment with their standards and requirements and facilitate approval when needed. The project concept will help test whether the investment is viable to be further developed into the funding proposal or not.
Example: In Colombia, the NDC Partnership, in collaboration with the National Department of Planning (DNP) and CrossBoundary, has launched the Project Checklist pilot as part of the Climate Finance Corridor initiative. This platform aims to identify, develop, and finance NDC-aligned climate projects across key sectors like agriculture, forestry, energy, transport, and water. By standardizing project information and linking high-impact projects with suitable financing sources, the initiative seeks to bridge the gap between climate projects and investment. The Project Checklist helps streamline funding access, ensuring projects meet investor expectations and contribute effectively to Colombia’s climate goals.
Support resources
The following resources can be considered. Explore the NDC Partnership Knowledge Portal Climate Toolbox for additional concept preparation for public and blended finance resources.