Enhancing India’s Readiness to Climate Finance

Enhancing India’s readiness to access and deliver international climate finance
Figure 4.1: Climate finance Readiness Framework
The Readiness Framework is a combination of four functions performed by key actors, agents
and institutions, who require specific skills and competencies to perform these functions
The Readiness Framework is built around TNC’s four ‘functions’ of readiness – political, strategic,
financial, and MRV – that a country must exhibit in order to be adequately prepared to access and
deliver large volumes of climate finance. These four functions have been grouped into three in this
report, as there is substantial overlap between the political and strategic functions. Each of these
functions are underpinned by skills, competencies, and experiences relating to planning,
management, and implementation – all of which are embedded in existing institutions, agencies and
actors within a country. Taking a holistic view, the Framework incorporates ODI’s ‘3R’ Framework,
ensuring that recommendations to improve readiness consider the country’s specific constraints and
barriers. This approach is: relative (taking a country’s socioeconomic and geopolitical characteristics
into account), responsive (to its particular needs, priorities, and challenges), and reasonable (in terms
of having identified the key issues and challenges at hand, and recommending practical steps that
can be taken to address these considerations).
The functions of readiness provide an overview of the key elements of a country’s national response
to climate change. The degree to which these functions have been implemented in a country provides
a snapshot of whether that country has the capacity to fully access and use climate finance to
implement its flagship national climate strategies. Based on TNC’s classification, the activities
captured under each of these functions include (but are not limited to) the following:
Political & Strategic Functions
Establish a national climate strategy & oversee its alignment with national development plans
Mainstream climate change into national policy agendas
Align institutional management of climate change with climate finance strategies
Identify priority actions, sectors, and regions for the national climate change strategy
Allocate national budgetary resources for climate-related programmes
Support the design and implementation of actions of the national climate change strategy
Ref: Ricardo-AEA/R/ED59216/Final Report
21