Scaling finance for cities’ climate action requires sufficient enabling conditions at the national level. Enabling framework conditions (EFCs) can create a conducive environment for climate finance, thereby helping national and subnational entities to drive climate action and contribute to the achievement of climate goals. Such EFCs improve access to finance by creating the right policy environment, enabling cities’ access to finance, strengthening subnational climate data, and ensuring coordination from the national to the city level.
This series, led by the Cities Climate Finance Leadership Alliance (CCFLA) and Integrated Urban Climate Action for Low-Carbon and Resilient Cities (UrbanAct), presents tools to enhance urban governments’ access to climate finance by assessing national enabling framework conditions (EFCs). The series also includes findings from our pilot applications in India and Indonesia, where the CCFLA/UrbanAct National Assessment Tool was used to evaluate countries’ national-level EFCs and their effectiveness in mobilizing subnational climate finance.
About the National and Subnational tools:
Enabling framework conditions (EFCs) are essential for scaling urban climate finance because they provide regulatory clarity, strengthen institutional capacity, mitigate investment risks, promote stakeholder engagement, and improve access to finance to support long-term sustainability. By creating a conducive environment for climate finance, EFCs help unlock the potential of national and subnational entities to drive climate action and achieve global climate goals.
The CCFLA/Urban-Act National Assessment Tool aims to enhance urban governments’ access to climate finance by assessing national EFCs. Introducing a standardized approach to understanding national EFCs and intergovernmental relationships can help identify potential areas for improvement. The tool’s primary target user group is national government officials, but it may also be useful to other stakeholders, including local governments and their partners, city networks, and NGOs.
- Assessing National Enabling Framework Conditions for Urban Climate Finance
The National Assessment Tool aims to:
• Gather information to understand the national EFCs for urban climate finance and intergovernmental relationships in the assessment country.
• Identify strengths and opportunities for improvement in national EFCs.
• Facilitate recommendations for the national government based on the analysis of question responses and considering disparate country contexts.
• Provide examples and additional resources on best practices to help national governments improve their EFCs. - Assessing Subnational Enabling Framework Conditions for Urban Climate Finance
The Subnational Assessment Tool aims to:
• Assess the EFCs for urban climate finance in a specific subnational area.
• Identify strengths and opportunities for improvement in subnational EFCs.
• Facilitate recommendations for subnational governments based on the analysis of dimension responses and considering disparate subnational contexts.
• Provide case studies and additional resources on best practices to help subnational governments improve their EFCs.
About the National Reports:
Increasing climate finance for South Asian cities is vital given their growing scale, as well as their contribution and vulnerability to climate change. South Asian cities collectively require USD 208 billion per year in climate finance from 2018 to 2030 (WWF, 2020) but receive an average of just USD 4 billion per year (CCFLA, 2021).
- Assessing India’s Enabling Framework Conditions for Subnational Climate Finance
This report presents findings from our pilot application in India of the CCFLA/Urban-Act National Assessment Tool, which evaluates countries’ national-level EFCs to mobilize subnational climate finance. As part of Urban-Act’s work to strengthen EFCs and cities’ capacities to engage in climate action, the assessment focuses on four key categories:
This analysis aims to support subnational climate finance in India by enhancing understanding of the country’s national EFCs, including their strengths, related opportunities, and recommendations for improvement. These findings can inform Cities Climate Finance Leadership Alliance (CCFLA) members’ and partners’ capacity-building activities with national and subnational government stakeholders. - Indonesia’s Enabling Framework Conditions for Subnational Climate Finance (forthcoming)
This report presents findings from our pilot application in Indonesia of the CCFLA/Urban-Act National Assessment Tool, which evaluates countries’ national-level EFCs to mobilize subnational climate finance. The assessment focuses on four key areas:
This analysis aims to support subnational climate finance in Indonesia by enhancing understanding of the country’s national EFCs, including their strengths, related opportunities, and recommendations for improvement. These findings can inform CCFLA members and partners’ capacity-building activities with national and subnational government stakeholders.
