Mozambique submitted its updated NDC during COP26 in Glasgow. It has been estimated that the country will need at least USD 11 billion for the implementation of its NDC during the first implementation period which runs from 2021 to 2025. To date, only an estimated 5-10% of the financial needs have been mobilized. Therefore, additional efforts are urgently required to accelerate and scale up the mobilization of domestic and international sources of climate finance.

With support from various donors under the umbrella of the NDC Partnership, and through previous readiness support activities, recent years have seen important progress in terms of improving planning and coordination efforts and building national capacities for accessing climate finance in Mozambique. These past and ongoing efforts have made great strides in moving the climate change agenda from planning towards finance and implementation. However, a number of specific challenges and gaps continue to exist which will require further capacity support and institutional strengthening to enable Mozambique to start significantly scaling up the mobilization of climate finance based on national priorities and needs. Particular gaps and challenges include the absence of a specific planning and coordination mechanism for driving the national climate finance agenda, the limited involvement of national funds and national financial institutions, lack of engagement of the private sector and general resource limitation on the part of key national institutions such as the NDA, the Advisory Committee and FNDS - Fundo Nacional de Desenvolvimento Sustentável and FUNAE – Fundo de Energia (as a candidate DAEs).

Against this backdrop, the current readiness proposal will build further on past and ongoing achievements and will focus on the following four interventions:

1. Provide dedicated capacity and institutional support to the NDA to improve the planning and mobilization of resources that are need to fully and effectively perform its roles and responsibilities in the context of climate finance mobilization in the country
2. Pilot an enhanced and country-driven planning and coordination framework for climate finance mobilization based on country priorities and needs;
3. Actively engage private sector actors to explore specific climate finance opportunities and strengthen capacities of government partners to analyse and structure public private partnership opportunities
4. Support FNDS with the finalization of the accreditation process and start the formulation of an Entity Work Programme and preparation/selection of one concept note with a Project Preparation Facility (PPF) request to support the elaboration of a first GCF funding proposal with FNDS as Direct Access Entity.