The International Climate Finance team is working with the Asian Development Bank and the Inter-American Development Bank on the role and capacity of national development banks (NDBs) in accessing and channelling climate finance for transformational impact.
Key findings are that there is significant potential to leverage, and deliver international climate finance resources in the form of grants, loans or technical assistance through NDBs. Those institutions are well placed to help deliver low carbon and resilient investments, including through mobilizing the private sector, in support of their national government’s climate change and development agendas.
However, many NDBs lack understanding for how to maximise the opportunities presented by international climate finance. Similarly, there is a need to strengthen these institutions’ capacity for using climate finance for effectively managing risks as identified within E3G’s report on how to design smart green incentive schemes.
A key focus of E3G’s role within the projects is on the Green Climate Fund’s accreditation process and how to meet relevant criteria. This includes strengthening the capacity of NDBs to plug identified gaps to access funds from the GCF and to successfully implement projects as national implementing entities or intermediaries.