| Whether cities can attract climate investment depends on their Enabling Framework Conditions (EFC): the policies, institutions, and systems that shape their ability to act and investors’ confidence to commit. The EFC Assessment Tools help governments assess where they stand and drive the reforms that unlock investment. |
Enabling Framework Conditions (EFCs) are policies, regulations, and systems that shape whether cities can turn climate plans into investable projects. They shape how responsibilities are shared across levels of government, how cities access finance, how risks are managed, and how public and private actors work together.
When EFCs are well designed and implemented, they reduce investment risk, strengthen institutional capacity, improve access to finance, and align national and subnational actors around shared climate goals. This creates the conditions for cities to deliver climate-resilient and low-carbon investments at scale.
Cities are increasingly exposed to climate risks, yet many struggle to assess whether their policy, institutional, and financial frameworks are fit for mobilizing climate investment at scale. Unclear policies, limited institutional capacity, fragmented governance, and underdeveloped financial systems can make it difficult for cities to pinpoint strengths, diagnose constraints, and prioritize reforms.
National governments and external investors face similar challenges, as they often lack a clear, comparable understanding of how enabling conditions at different levels of government influence urban climate investment. A structured assessment approach can highlight these issues and support coordination across stakeholders.
Developed by CCFLA and Urban-Act, the National and Subnational EFC Assessment Tools provide a practical, structured way to evaluate the condition shaping urban climate finance at the national and subnational levels. By introducing a standardized approach to understanding national EFCs and intergovernmental relationships, the tool can help identify areas for improvement and targeted action can make the biggest difference.
The tools are designed primarily for national and subnational government officials, but are also useful to others, including technical partners, city networks, and NGOs.
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 of national EFCs, as well as opportunities for improvement.
• Facilitate recommendations tailored to the country context.
• Provide examples and resources on best practices to help national governments improve EFCs.
The Subnational Assessment Tool aims to:
• Assess the EFCs for urban climate finance in a specific subnational area, which could be a city, state, or region.
• Identify strengths and opportunities for improvement at the subnational level.
• Facilitate recommendations for tailored to the local context.
• Provide case studies and resources on best practices to help subnational governments improve their EFCs.
Identify the key actors.
Review policies, conduct interviews, and gather information.
Validate preliminary findings with stakeholders.
Summarize strengths, gaps, and opportunities for improvement.
Present and confirm findings with government partners.
Develop roadmaps or reform plans