In 2019, Nicaragua adopted its National Policy on Mitigation and Adaptation to Climate Change (NPMACC). With this policy, the country has established its framework to respond to climate change, which is already affecting the country. Within this context, the objective of this readiness proposal is to strengthen the capacity of key institutions in the country to implement the policy and the country work program with GCF and to guide investments in a low-emissions economy and a society resilient to climate change. Ministerio de Hacienda y Crédito Público (MHCP), in its role as NDA, and the regulatory institutions of the financial system will be the primary beneficiaries of the technical assistance.  

The gaps that this readiness proposal addresses relate to the inadequate capacity in MHCP to properly administer and assess its portfolio of projects and the monitoring of climate finance. Regarding the regulatory institutions of the financial system, the readiness effort will focus on integrating climate finance considerations into regulations and processes with the aim of generating additional financing, including from private sector sources, to respond to climate change in the country.