The readiness proposal “Developing the capacities of Bosnia and Herzegovina (BiH) for an effective engagement with the Green Climate Fund” addresses key gaps and barriers with regards to a lack of institutional and organizational capacities and networks, insufficient strategic frameworks to guide climate investments and the lack of a comprehensive climate finance tracking system. With regard to the institutional and legal barriers, BiH lack technical capacities in key ministerial bodies, althoughalthough climate change issues have been peripheral to most institutions and government agencies. Another barrier is linked to the complex administrative structure of BiH, as the country faces a problem of coordination on horizontal (linking with the sectors) and vertical levels (coordination of work at different levels) and lacks effective mechanisms to enhance policy coherence for sustainable development. This barrier of complex coordination configuration among key ministerial/institutional bodies throughout the 4 levels of administration also negatively affect technical capacities for data collection and Measuring, Reporting and Verification (MRV). Regarding the financing barriers, currently BiH lacks adequate financial resources for achieving necessary investments and displays an inefficient use of available resources, due to institutional barriers and poor capacities to facilitate access to climate finance.