In this case, international donors provide technical assistance via grant funding that enables sub-national governments to identify and prepare bankable projects. These grants can cover a wide range of activities, from capacity development of government staff to preparing strategies and plans for low-carbon and resilient development to directly funding project preparation facilities.
International climate finance
High - much evidence available
Enabling conditions and success factors
- Recipient governments should have the ability to absorb and benefit from TA support, maximising the development impact of such funding.
- Technical assistant grants can create deeper government capacity to take forward climate financing on a more independent basis.
- Technical assistant grants can help develop project pipelines, which is vital to attracting much needed private sector investment.
Challenges and risks to implementation
- Limited availability of grant funding, especially for municipalities with big needs.
- Should be used for transition, but often is continued beyond the need, so the grants cannot be used elsewhere.