Enhancing India’s Readiness to Climate Finance

Enhancing India’s readiness to access and deliver international climate finance
Following extensive consultation and development with stakeholders working in the climate finance
policy space, this report lays out a series of metrics that can be used to analyse climate finance
readiness in a specific country for each of the four main functions of readiness. To a large degree, the
metrics have been developed in consultation with experts who developed GIZ’s Clif Reflect Tool. The
metrics take the form of a series of questions about a country’s readiness, grouped in two Tiers under
each of the main readiness functions. The questions from GIZ’s Clif Reflect Tool have been adapted
to fit within the Readiness Framework functions, and where necessary, have been supplemented by
questions developed by the project team. Figure 4.2 provides a high-level outline of the Framework’s
evaluation criteria.
At the top of the pyramid, each function provides a headline theme relating to climate finance
readiness at the national level. For each of these functions, a series of Tier 1 indicators have been
elaborated that cover all of the sub-themes of the function. Finally, each of these Tier 1 indicators are
backed by a number of Tier 2 indicators (see Tables 4.1-4.3), which are questions that analyse the
skills and capacities held by institutions and actors who perform the sub-themes of the four readiness
functions. Importantly, the questions have been designed to highlight the planning, management,
and implementation competencies listed in the Readiness Framework. As such, when the
Framework is used to evaluate a country’s climate finance readiness, the detailed indicators will elicit
responses that highlight the extent that these key climate finance competencies are present in key
agencies and institutions in the country in question.
To apply the Framework in practice, experts working in climate change and environmental policy,
finance, and relevant sectors – representing government, national or regional implementing agencies,
civil society, think tanks, research institutions, the private sector, and international donors – are
consulted and asked Tier 2 questions relevant to their expertise. Answers from the Tier 2 level are
scored by the evaluators and aggregated at the Tier 1 level to give headline Tier 1 messages – which
can in turn be aggregated to give high-level messages at the functional level. Chapter 5 covers this
methodology for application in India in greater detail.
Table 4.1: Detailed Tier 1 & Tier 2 indicators for the Political & Strategic functions
Political & Strategic Functions
Tier 1 Indicators
1. GHG emissions
Have emissions estimates been identified
at the national and sectoral levels?
2. Risk & Vulnerability
Have climate impacts, vulnerabilities, &
risks been identified?
3. Economic impacts of climate change
Have implications of climate change for the
national economy been estimated?
Tier 2 Indicators
1.1 What are the major emissions sources in the country?
1.2 What systems (if any) are in place to estimate and
account for economy wide emissions (e.g. greenhouse
gas inventories, national communications, etc.)?
2.1 What assessments (if any) of climate risk at country and
sectoral levels have been completed?
2.2 What are the country’s major vulnerabilities to climate
change and what sectors are expected to be most
heavily impacted?
3.1 Have the implications of climate change for current
public and private sector investment / economic
strategies in key target sectors been considered?
3.2 Have the costs and benefits of taking action to shift
these strategies been assessed and quantified?
Ref: Ricardo-AEA/R/ED59216/Final Report
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