Blog: Mobilising climate finance for NDCs - Lessons in strategy from Grenada

At the heart of the Paris Agreement on Climate Change are Nationally Determined Contributions (NDCs). These are plans developed by each country, setting out ambitious national climate targets to achieve the Agreement’s long-term global goals on climate mitigation and adaptation. 

The implementation of these NDCs requires substantial resources. Therefore, developing targeted and effective resource mobilisation strategies is critical for countries to secure climate finance, both international and domestic, as well as public and private, while also fostering partnerships for transformational change.

A Resource Mobilisation Strategy for Grenada

Grenada submitted its second NDC to the United Nations Framework Convention on Climate Change (UNFCCC) on 30 November 2020, with a target to reduce 40% of emissions by 2030, based on 2010 levels, being conditional on receiving external funding. Its National Adaptation Plan (NAP) 2017-2021 is also in the process of being updated.

According to sectoral investment plans prepared in 2022 through support from the NDC Partnership, an estimated investment of US$ 650 million is required for NDC implementation, covering energy, forestry, transport & waste sectors. Meanwhile, NAP interventions require US$ 260 million. Thus, in total, over US$ 900 million must be mobilised by 2030 to meet the country’s NDC and NAP climate commitments. 

To fully implement its NDC, Grenada requires grants and other concessional finance, support for capacity building, institutional strengthening and access to appropriate technologies. To help address these needs, the Government of Grenada requested support under the Partnership Action Fund (PAF), a pooled funding resource provided by NDC Partnership.

The Commonwealth Secretariat responded to this request and, under a co-financing collaboration approach with the NDC Partnership,  supported Grenada, through the Commonwealth Climate Finance Access Hub (CCFAH), to develop a robust resource mobilisation strategy to implement the country’s NDC.

Endorsed by Cabinet

The Resource Mobilisation Strategy for the Nationally Determined Contribution Implementation Plan for Grenada, 2023-2030 was endorsed by Cabinet in the first quarter of 2023. It considers Grenada’s current economic, regulatory, and institutional context and proposes to bridge the funding gap, mobilise resources, and facilitate the deployment of innovative solutions for climate adaptation and mitigation in Grenada through the following:

• Establishment of a national financing vehicle or a dedicated fund which can leverage resources from existing funds and channel domestic and international financial resources for NDC implementation;
• Improved Public-Private Partnership framework and project pipeline by sector to motivate the private sector to bring in additional financing, provide expertise, and take on some project risks;
• Use of Innovative Financing Instruments such as blue bonds, green bonds, green loans, debt for climate swaps and carbon trade mechanisms;
• Regional co-operation and aggregation and networking with financing institutions, for example, through joint planning and programming with regional institutions;
• Capacity building to help those working on climate initiatives to managing and coordinating climate finance funding requests and strengthening project pipelines.

The strategy’s formulation involved extensive collaboration among key stakeholders, including government agencies, civil society, and international development and funding partners. This inclusive approach ensured that the strategy aligned with the country’s priorities and harnessed the collective knowledge and experience of stakeholders.

Key considerations for implementation

The strategy builds on lessons and best practices in climate finance mobilisation garnered from other Commonwealth countries such as Antigua and Barbuda, Belize, Rwanda, Saint Lucia and Vanuatu. Key insights also emerged during a recent edition of the Commonwealth NDC Webinar Series to further support the successful implementation of the strategy, including the importance of:

• Prioritising direct access to international climate funds such as the Green Climate Fund or Adaptation Fund, thereby empowering national institutions to manage financial resources for climate action.
• Adopting a programmatic approach, where feasible, as this can deliver synergistic results that benefit wider communities, in addition to a project-based approach which is not as effective for sector-wide transformation.
• Understanding the role and needs of the local private sector to engage in resource mobilisation efforts.
• Engaging young people and ensuring the resources accessed take account of their needs and their capabilities as solution providers.
• Coupling development with climate action and ensuring the objectives of National Development Plans and Climate Plans such as NDCs and NAPs are aligned when accessing climate funds.
• Ensuring sustainability and inclusivity by establishing a basket of funds from domestic and international public and private resources with different funding windows and offering various financial products.

Outlook

Grenada’s Resource Mobilisation Strategy marks a pivotal moment in the country’s journey toward a low-carbon and climate-resilient future and demonstrates the importance of strategic planning and proactive engagement.

By crafting a robust strategy, Grenada has positioned itself to effectively leverage domestic and international public and private financial resources, foster partnerships, and pave the way for transformative initiatives that will allow Grenadians to combat and adapt to climate change.

In line with recommendations contained in the document, the Commonwealth Climate Finance Hub has further supported the Government in developing three project concept notes around the following priorities:  

1. A Climate Resilient Health Sector in Grenada
2. Carbon Neutral Street Lighting and Energy Efficiency Programme
3. Forest Emission Reduction Programme for Grenada

Grenada’s experience sets a model for other countries, including other Small Island Developing States, that may also wish to strategically mobilise resources for climate action. It illustrates that, despite limited resources, dedication, collaboration, inclusivity, and strategic thinking can pave the way for a sustainable and climate-resilient future.

With this blueprint in hand, Grenada is primed to make substantial steps in tackling the challenges of climate change and ensuring the well-being and livelihoods of their people and ecosystems for generations to come.

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Participants from the Commonwealth Secretariat, Government of Grenada and consultants are pictured during the first Stakeholder Validation Workshop, held on 7 December  2022, to advance the Resource Mobilisation Strategy for the NDC Implementation Plan for Grenada.

Media contact

• Josephine Latu-Sanft  Senior Communications Officer, Communications Division, Commonwealth Secretariat
• +44 20 7747 6476  |  E-mail