Strengthening institutional capacities and processes to enhance project development and to increase mobilization of climate finance for the implementation of Nationally Designated Contributions (NDCs) and the Long-Term Strategy (LTS) in Chile.
Strengthening institutional capacities and processes to enhance project development and to increase mobilization of climate finance for the implementation of Nationally Designated Contributions (NDCs) and the Long-Term Strategy (LTS) in Chile.
The government of Chile has determined the need to prioritize and enhance its engagement with the GCF to: i) increase the level of international climate financing to implement cross-cutting adaptation and mitigation actions, and ii) increase the level of participation of national entities in the process of climate change planning and implementation. To achieve this, the government of Chile has identified the need to strengthen the capacities of its NDA to assess and approve climate change projects to be presented before the GCF and bolster the role of national entities in the formulation and implementation of GCF-supported projects.
The main barriers this Readiness grant will seek to overcome are:
- Limited operational capacities to guide, assess, prioritize, and select climate change projects that can be financed by the GCF.
- Limited capacity to effectively engage national stakeholders that actively participate in formulating and implementing climate investments in the country, particularly from the private sector
- Limited number of accredited direct access entities (DAEs) to support the execution of a nationally responsive GCF pipeline.
- Limited capacity to finance climate change projects that contribute to achieving climate objectives established in the LMCC, LTS, and the NDC.
Considering the barriers mentioned above and the need to strengthen the technical and operational capacity of the NDA to effectively engage and respond to all GCF-related activities in the country, the main objective of this Readiness support is to strengthen the capacities of the NDA and its Technical Secretariat to coordinate and implement Chile's response to climate change more effectively, through more efficient and ambitious country engagement with the GCF and through the identification and support of Direct Access Entities (DAEs) that can play a vital role in the formulation and implementation of climate change project through the GCF. This includes improving various institutional and human capacities to i) further engage national stakeholders in GCF financing, ii) assess, prioritize, and approval the formulation of project ideas, concept notes, and funding proposals, iii) follow up on pipeline implementation, iv) strengthen stakeholder participation from different sectors and encourage private sector participation in climate finance, including local financial institutions, amongst others.