GCF READINESS SUPPORT

• • To identify options for operationalizing the CSRI Initiative, its governance structure, and priority activities, the readiness team conducted extensive interviews with SIDS’ NDAs, direct access entities (DAEs), and regional organizations in 2022 and 2023. Stakeholders consulted to date have expressed several key points:
    • There is a recognized need for the inter-regional platform that the CSRI Initiative provides. 
    • The CSRI Initiative should be owned by SIDS and focus exclusively on activities that benefit SIDS. Some stakeholders also suggest allowing the participation of countries that are not SIDS but face similar challenges in their island or coastal regions. 
    • Emphasis should be placed on outcomes and practical solutions, prioritizing flexibility and cost-efficiency in the design of the CSRI Initiative.
    • CSRI should eventually be formally established with a legal status, governed by principles that reflect SIDS ownership and objectives. Once formally established, exploring eventual accreditation to the GCF can be explored. 
    • The CSRI Initiative should align with the regional climate finance architecture and build partnerships with SIDS’ DAEs and regional organizations and international agencies.
    • Its activities should be planned through multi-annual work plans and programmatic projects supported by external partners. These may include but are not limited to:
      • Supporting the development of GCF projects focusing on global and/or interregional aspects.
      • Facilitating the identification and delivery of science-based climate information, downscaled as needed.
      • Systematically and continuously collecting and disseminating information to showcase technologies and project approaches successfully tested in SIDS with significant innovation and/or replication potential across SIDS an on inter-regional or global scale.
      • Convening meetings of SIDS to share experiences; systematically and regularly gathering opinions, information, and proposed solutions from CSRI stakeholders. 
    • CSRI partnering countries should engage in consultations and collaboratively develop institutional and governance arrangements for the Initiative, as well as its work plan. 
  • • To take stock of SIDS’ direct access to GCF and potential role of the CSRI Initiative, the readiness team conducted extensive interviews with SIDS’ NDAs, direct access entities (DAEs), and regional organizations in 2022 and 2023. Stakeholders consulted to date have expressed several key points and suggestions summarised below.
    • The Caribbean and Pacific DAEs have strained capacity to meet demand from countries. Caribbean SIDS are covered through regional direct access entities (DAEs), however, there are only three national DAEs. Pacific SIDS have three regional and only three national DAEs, but no DAE accredited for loans, guarantees, and equity. 
    • AIS SIDS have no national or regional DAE representation and are thus fully dependent on international AEs. It would, however, be necessary to have a GCF AE that serves all AIS SIDS, and SIDS only (ideally, an entity accredited to manage GCF loans and guarantees but such entity might be difficult to identify). 
    • SIDS DAEs value GCF support but face multiple challenges in project development and implementation. Domestic capacity for developing and implementing bankable GCF projects remains extremely limited, including absorption capacity for multiple projects.  While DAEs and regional entities are improving in understanding and managing GCF requirements, passing these down to executing entities (EEs) remains a significant challenge, demanding substantial efforts, resources, assistance, and supervision. Existing DAE staff often lack the capacity to meet the growing GCF requirements, and external recruitment of experienced project managers familiar with SIDS is difficult. Additionally, some consulting firms show consistent weaknesses due to inadequate SIDS experience. While its activities are still being shaped out, CSRI Initiative can contribute to overcoming some of these challenges:
      • Interviewed stakeholders suggested that a systematic and continuous learning and coaching for project developers from SIDS could be considered as part of the CSRI activities. This support could span the entire project cycle, including project generation, formulation, implementation, and evaluation. Regional entities currently struggle to meet the demand from countries for such support. A targeted learning, training, and consulting program on all aspects of GCF project development and management in SIDS would be highly desirable. One element of such program could be capacity development for young professionals, focusing on climate finance, project development and implementation. This could also include inter-regional exchange. 
    • Providing evidence for the climate change basis for GCF concept notes and funding proposals remains one of the most pressing issues. 
      • CSRI Initiative could facilitate access to universities and academia which have or can generate downscaled climate information at national/local levels that can feed into project development. CSRI Initiative has already developed a brief guidance document on developing climate change basis for SIDS. It a short and practical document that helps navigate through available GCF guidance, sources, tools and solutions to address SIDS-specific challenges in developing climate change basis.
    • In the Pacific, many SIDS have ambitious mitigation targets, but corresponding projects are too big, and the regional AEs cannot provide loans, as one respondent stated. Hence, an innovative mechanism to allow SIDS to access grants for mitigation projects would be needed.
      • CSRI Initiative could facilitate knowledge sharing to showcase innovative financing mechanisms, technologies and project approaches successfully tested in SIDS with large innovation and/or replication potential across SIDS inter-regionally or globally.

• SIDS represent about one quarter of all countries eligible for GCF finance. The share of SIDS-specific accredited entities (AEs) in all AEs with effective legal agreements is about 12%, indicating current under-representation of SIDS.
• • To take stock of SIDS’ direct access to GCF and potential role of the CSRI Initiative, the readiness team conducted extensive interviews with SIDS’ NDAs, direct access entities (DAEs), and regional organizations in 2022 and 2023. Stakeholders consulted to date have expressed several key points and suggestions summarised below.
  • The Caribbean and Pacific DAEs have strained capacity to meet demand from countries. Caribbean SIDS are covered through regional direct access entities (DAEs), however, there are only three national DAEs. Pacific SIDS have three regional and only three national DAEs, but no DAE accredited for loans, guarantees, and equity. 
  • AIS SIDS have no national or regional DAE representation and are thus fully dependent on international AEs. It would, however, be necessary to have a GCF AE that serves all AIS SIDS, and SIDS only (ideally, an entity accredited to manage GCF loans and guarantees but such entity might be difficult to identify). 
  • SIDS DAEs value GCF support but face multiple challenges in project development and implementation. Domestic capacity for developing and implementing bankable GCF projects remains extremely limited, including absorption capacity for multiple projects.  While DAEs and regional entities are improving in understanding and managing GCF requirements, passing these down to executing entities (EEs) remains a significant challenge, demanding substantial efforts, resources, assistance, and supervision. Existing DAE staff often lack the capacity to meet the growing GCF requirements, and external recruitment of experienced project managers familiar with SIDS is difficult. Additionally, some consulting firms show consistent weaknesses due to inadequate SIDS experience. While its activities are still being shaped out, CSRI Initiative can contribute to overcoming some of these challenges:
    • Interviewed stakeholders suggested that a systematic and continuous learning and coaching for project developers from SIDS could be considered as part of the CSRI activities. This support could span the entire project cycle, including project generation, formulation, implementation, and evaluation. Regional entities currently struggle to meet the demand from countries for such support. A targeted learning, training, and consulting program on all aspects of GCF project development and management in SIDS would be highly desirable. One element of such program could be capacity development for young professionals, focusing on climate finance, project development and implementation. This could also include inter-regional exchange. 
  • Providing evidence for the climate change basis for GCF concept notes and funding proposals remains one of the most pressing issues. 
    • CSRI Initiative could facilitate access to universities and academia which have or can generate downscaled climate information at national/local levels that can feed into project development. CSRI Initiative has already developed a brief guidance document on developing climate change basis for SIDS. It a short and practical document that helps navigate through available GCF guidance, sources, tools and solutions to address SIDS-specific challenges in developing climate change basis.
  • In the Pacific, many SIDS have ambitious mitigation targets, but corresponding projects are too big, and the regional AEs cannot provide loans, as one respondent stated. Hence, an innovative mechanism to allow SIDS to access grants for mitigation projects would be needed.
    • SIDS represent about one quarter of all countries eligible for GCF finance. The share of SIDS-specific accredited entities (AEs) in all AEs with effective legal agreements is about 12%, indicating current under-representation of SIDS.
    • To take stock of SIDS’ direct access to GCF and potential role of the CSRI Initiative, the readiness team conducted extensive interviews with SIDS’ NDAs, direct access entities (DAEs), and regional organizations in 2022 and 2023. Stakeholders consulted to date have expressed several key points and suggestions summarised below.
    • The Caribbean and Pacific DAEs have strained capacity to meet demand from countries. Caribbean SIDS are covered through regional direct access entities (DAEs), however, there are only three national DAEs. Pacific SIDS have three regional and only three national DAEs, but no DAE accredited for loans, guarantees, and equity. 
    • AIS SIDS have no national or regional DAE representation and are thus fully dependent on international AEs. It would, however, be necessary to have a GCF AE that serves all AIS SIDS, and SIDS only (ideally, an entity accredited to manage GCF loans and guarantees but such entity might be difficult to identify). 
    • SIDS DAEs value GCF support but face multiple challenges in project development and implementation. Domestic capacity for developing and implementing bankable GCF projects remains extremely limited, including absorption capacity for multiple projects.  While DAEs and regional entities are improving in understanding and managing GCF requirements, passing these down to executing entities (EEs) remains a significant challenge, demanding substantial efforts, resources, assistance, and supervision. Existing DAE staff often lack the capacity to meet the growing GCF requirements, and external recruitment of experienced project managers familiar with SIDS is difficult. Additionally, some consulting firms show consistent weaknesses due to inadequate SIDS experience. While its activities are still being shaped out, CSRI Initiative can contribute to overcoming some of these challenges:
      • Interviewed stakeholders suggested that a systematic and continuous learning and coaching for project developers from SIDS could be considered as part of the CSRI activities. This support could span the entire project cycle, including project generation, formulation, implementation, and evaluation. Regional entities currently struggle to meet the demand from countries for such support. A targeted learning, training, and consulting program on all aspects of GCF project development and management in SIDS would be highly desirable. One element of such program could be capacity development for young professionals, focusing on climate finance, project development and implementation. This could also include inter-regional exchange. 
    • Providing evidence for the climate change basis for GCF concept notes and funding proposals remains one of the most pressing issues. 
      • CSRI Initiative could facilitate access to universities and academia which have or can generate downscaled climate information at national/local levels that can feed into project development. CSRI Initiative has already developed a brief guidance document on developing climate change basis for SIDS. It a short and practical document that helps navigate through available GCF guidance, sources, tools and solutions to address SIDS-specific challenges in developing climate change basis.
    • In the Pacific, many SIDS have ambitious mitigation targets, but corresponding projects are too big, and the regional AEs cannot provide loans, as one respondent stated. Hence, an innovative mechanism to allow SIDS to access grants for mitigation projects would be needed.
      • CSRI Initiative could facilitate knowledge sharing to showcase innovative financing mechanisms, technologies and project approaches successfully tested in SIDS with large innovation and/or replication potential across SIDS inter-regionally or globally.
        

• Water security is one of the greatest threats facing local communities inhabiting Small Island Developing States (SIDS). To meet the multi-dimensional nature of this challenge experienced by climate-vulnerable states, the CSRI Initiative is developing a Climate Resilient Water Security Programme.
• This vital programme embodies a global, SIDS-driven approach working towards the end goal of achieving climate-resilient, environmentally healthy, and water-secure island nations. It seeks to catalyse a paradigm shift for SIDS, through a phased approach, addressing island-specific contextual scenarios to deliver solutions for enhanced water security, climate readiness, and wastewater management. Essential to achieving the programme’s mission is engaging in global and inter-regional knowledge exchange across all its components.
• The private sector plays a vital role, bringing indispensable financial resources, technological solutions, and expertise to drive the necessary paradigm shift in the water sector. To guide essential steps and actions for private sector engagement in designing and implementing this Programme, a Roadmap for the CSRI Initiative was developed. 
• You can find more information on the process and how to participate here.

   

• • To take stock of SIDS’ direct access to GCF and potential role of the CSRI Initiative, the readiness team conducted extensive interviews with SIDS’ NDAs, direct access entities (DAEs), and regional organizations in 2022 and 2023. Stakeholders consulted to date have expressed several key points and suggestions summarised below.
  • The Caribbean and Pacific DAEs have strained capacity to meet demand from countries. Caribbean SIDS are covered through regional direct access entities (DAEs), however, there are only three national DAEs. Pacific SIDS have three regional and only three national DAEs, but no DAE accredited for loans, guarantees, and equity. 
  • AIS SIDS have no national or regional DAE representation and are thus fully dependent on international AEs. It would, however, be necessary to have a GCF AE that serves all AIS SIDS, and SIDS only (ideally, an entity accredited to manage GCF loans and guarantees but such entity might be difficult to identify). 
  • SIDS DAEs value GCF support but face multiple challenges in project development and implementation. Domestic capacity for developing and implementing bankable GCF projects remains extremely limited, including absorption capacity for multiple projects.  While DAEs and regional entities are improving in understanding and managing GCF requirements, passing these down to executing entities (EEs) remains a significant challenge, demanding substantial efforts, resources, assistance, and supervision. Existing DAE staff often lack the capacity to meet the growing GCF requirements, and external recruitment of experienced project managers familiar with SIDS is difficult. Additionally, some consulting firms show consistent weaknesses due to inadequate SIDS experience. While its activities are still being shaped out, CSRI Initiative can contribute to overcoming some of these challenges:
    • Interviewed stakeholders suggested that a systematic and continuous learning and coaching for project developers from SIDS could be considered as part of the CSRI activities. This support could span the entire project cycle, including project generation, formulation, implementation, and evaluation. Regional entities currently struggle to meet the demand from countries for such support. A targeted learning, training, and consulting program on all aspects of GCF project development and management in SIDS would be highly desirable. One element of such program could be capacity development for young professionals, focusing on climate finance, project development and implementation. This could also include inter-regional exchange. 
  • Providing evidence for the climate change basis for GCF concept notes and funding proposals remains one of the most pressing issues. 
    • CSRI Initiative could facilitate access to universities and academia which have or can generate downscaled climate information at national/local levels that can feed into project development. CSRI Initiative has already developed a brief guidance document on developing climate change basis for SIDS. It a short and practical document that helps navigate through available GCF guidance, sources, tools and solutions to address SIDS-specific challenges in developing climate change basis.
  • In the Pacific, many SIDS have ambitious mitigation targets, but corresponding projects are too big, and the regional AEs cannot provide loans, as one respondent stated. Hence, an innovative mechanism to allow SIDS to access grants for mitigation projects would be needed.
    • SIDS represent about one quarter of all countries eligible for GCF finance. The share of SIDS-specific accredited entities (AEs) in all AEs with effective legal agreements is about 12%, indicating current under-representation of SIDS.
    • To take stock of SIDS’ direct access to GCF and potential role of the CSRI Initiative, the readiness team conducted extensive interviews with SIDS’ NDAs, direct access entities (DAEs), and regional organizations in 2022 and 2023. Stakeholders consulted to date have expressed several key points and suggestions summarised below.
    • The Caribbean and Pacific DAEs have strained capacity to meet demand from countries. Caribbean SIDS are covered through regional direct access entities (DAEs), however, there are only three national DAEs. Pacific SIDS have three regional and only three national DAEs, but no DAE accredited for loans, guarantees, and equity. 
    • AIS SIDS have no national or regional DAE representation and are thus fully dependent on international AEs. It would, however, be necessary to have a GCF AE that serves all AIS SIDS, and SIDS only (ideally, an entity accredited to manage GCF loans and guarantees but such entity might be difficult to identify). 
    • SIDS DAEs value GCF support but face multiple challenges in project development and implementation. Domestic capacity for developing and implementing bankable GCF projects remains extremely limited, including absorption capacity for multiple projects.  While DAEs and regional entities are improving in understanding and managing GCF requirements, passing these down to executing entities (EEs) remains a significant challenge, demanding substantial efforts, resources, assistance, and supervision. Existing DAE staff often lack the capacity to meet the growing GCF requirements, and external recruitment of experienced project managers familiar with SIDS is difficult. Additionally, some consulting firms show consistent weaknesses due to inadequate SIDS experience. While its activities are still being shaped out, CSRI Initiative can contribute to overcoming some of these challenges:
      • Interviewed stakeholders suggested that a systematic and continuous learning and coaching for project developers from SIDS could be considered as part of the CSRI activities. This support could span the entire project cycle, including project generation, formulation, implementation, and evaluation. Regional entities currently struggle to meet the demand from countries for such support. A targeted learning, training, and consulting program on all aspects of GCF project development and management in SIDS would be highly desirable. One element of such program could be capacity development for young professionals, focusing on climate finance, project development and implementation. This could also include inter-regional exchange. 
    • Providing evidence for the climate change basis for GCF concept notes and funding proposals remains one of the most pressing issues. 
      • CSRI Initiative could facilitate access to universities and academia which have or can generate downscaled climate information at national/local levels that can feed into project development. CSRI Initiative has already developed a brief guidance document on developing climate change basis for SIDS. It a short and practical document that helps navigate through available GCF guidance, sources, tools and solutions to address SIDS-specific challenges in developing climate change basis.
    • In the Pacific, many SIDS have ambitious mitigation targets, but corresponding projects are too big, and the regional AEs cannot provide loans, as one respondent stated. Hence, an innovative mechanism to allow SIDS to access grants for mitigation projects would be needed.
      • CSRI Initiative could facilitate knowledge sharing to showcase innovative financing mechanisms, technologies and project approaches successfully tested in SIDS with large innovation and/or replication potential across SIDS inter-regionally or globally.
        

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