Guatemala's efforts to implement and achieve its NDC objectives face significant impediments due to the overarching challenge of inadequate preparedness and capacity. This manifests through the following barriers which hinder progress toward sustainable climate action and will be addressed by this readiness proposal:

1. Lack of integrated governance structures on climate-related matters
2. Absence of a finalized GCF Country Programme and a coordinated project pipeline
3. Absence of an integrated monitoring and evaluation (M&E) system to track climate change adaptation impact and climate finance.
4. Lack of a common understanding of what types of activities can be considered sustainable or climate compatible.

This proposed Readiness support seeks to address the barriers to fostering capacities and accelerating climate finance readiness. Outputs will entail a coordination mechanism to plan and facilitate access to climate finance and capacity-building activities that promote continuous learning. In addition, a finalized GCF Country Programme and an aligned project pipeline will be developed. The private sector is to be engaged in the development of a climate finance taxonomy to identify accessible sources and suitable instruments. Through these activities, financial planning and resource allocation at various levels will be enabled, primarily on the national level but also benefiting the local level (e.g., municipalities). An improved monitoring system will be promoted to facilitate assessment and reporting processes that are necessary for resource planning and mobilization. Results of previous and existing Readiness grants will be considered to enable holistic progress in line with the country’s priorities and established financial strategies.