STEP 4


Financing and implementing

Overview

It is important to ensure that the large sums of public and private finance currently channelled into economic stimulus packages are used to put countries on net-zero emission pathways. We must also note the significant divergence between advanced economies, on the one hand, and emerging markets and developing countries, on the other, in terms of impact and capacity to respond. Not all countries have the fiscal space to act on large expansionary policies. Thus, it is important to examine NDC financial landscapes and identify gaps and opportunities to mobilize additional resources. The ongoing process of devising NDC financial strategies can inform decisions regarding how to align public finance management with green recovery and attract private finance, using climate finance management tools and fiscal policies.

Objective

The objective of this fourth step is to ensure that enabling conditions are met so that the identified actions can be implemented in sustained fashion.

Outputs/outcome

Existing tools and institutional arrangements intended to increase cooperation among stakeholders (particularly between ministries of finance and environment) and to mobilize additional resources (as required to green the recovery) must be leveraged. In addition, the implementation phase must focus on building the capacities needed to implement the recovery package through training and institutional support.

Milestones

1

Diagnostics

Map out implementation gaps: human resource capacity, institutional, financial, macroeconomic limitations

2

Mobilizing Finance

Identify various financing options and other fiscal/regulatory measures to finance the green recovery package (public, private, and blended finance schemes)

3

Capacity building

Build capacities to design and deliver green recovery measures

4

Implementing

Implement actions following clear roadmap and guidelines

Tools and resources

Assessing Institutional Capacity (Assessing an institution’s capacity to address climate change issues)
Investment & Financial Flow Assessment: Assessing financial needs
Framework for Enhancing Gender and Poverty Integration in Climate Finance
Green Budgeting Tool
Climate Public Expenditure Review (Climate Public Expenditure and Institutional Review)
Climate Change Financing Framework
Integrated National Financing Framework
Resource guide for NDC finance
CO2 Performance Ladder 
Green Procurement Guidance from OECD
Framework for Enhancing Gender and Poverty Integration in Climate Finance
De-risking Renewable Energy Investment
Private Climate Expenditure Review
Internationally Transferred Mitigation Options (IMTOs) and other Cooperative Approaches Under Article 6.2
Blending Climate Finance Through National Climate Funds
Carbon Tax Guide: A Handbook for Policy Makers (2017)
Green Recovery for Practitioners: Fiscal Policies for a Sustainable, Inclusive and Resilient Transformation (GIZ)
OECD Guide to Environmentally Related Taxation for Policy Makers
Green Bonds: Guidelines
Debt for Climate Swaps
Carbon Payment for Development (CP4D) Facility
Learning for a Green Recovery
PAGE Academy on the Green Economy
Coalition of Finance Ministers for Climate Action and Helsinki principles
Planning for NDC implementation: A Quick Start Guide
Implementing Nationally Determined Contributions (NDCs)
Framework for Enhancing Gender and Poverty Integration in Climate Finance
Example of NDC financing Strategy: Kenya
Example of NDC Implementation/Roadmap: Fiji