Arab States Climate Finance Mobilization and Access Strategy

ARAB STATES CLIMATE FINANCE MOBILIZATION AND ACCESS STRATEGY

Countries in the MENA are under severe water stress. Climate change will likely exacerbate this condition and further desertification will have severe implications on coastlines, land degradation and agricultural yields, in a region whose poorest are mostly agrarian and already dependent on food imports. Many countries in the region are making progress on issues of sustainable development by addressing energy needs and providing resilience, enabled through sophisticated domestic financial markets and investments, in the region and beyond.

As encapsulated in the Paris Agreement, there is an urgent need to enhance the provision of finance, technology and capacity-building and to ensure predictability and alignment of finance for nationally defined climate and sustainable development goals.

OBJECTIVES

The project is designed to deliver regional clarity on mobilization and access of climate finance to support the needs identified by countries regarding the implementation of priority adaptation projects and investments with mitigation co-benefits in accordance with the goals outlined in their Nationally Determined Contributions (NDCs), National Adaptation Plans (NAPs) and other relevant national policies and/or strategies. The project builds on, and complements, existing climate finance work underway and helps to establish collaborations, harness networks and avoid duplication.

The project aims to facilitate a country-driven needs assessment and a resulting climate finance mobilization and access strategy for the Arab region. This will be achieved by operationalizing the following phases:

1. Assess climate finance barriers in Arab countries and prioritize climate finance and investment needs for the region, considering structural differences and opportunities.

2. Develop an all-inclusive “Arab Climate Finance Mobilization and Access Strategy”, in a country-driven manner, to be led by a group of countries through, for instance, a regional organization by building on the needs assessment.

3. Endorsement of the strategy at the highest political level.

4. Support the translation of finance needs into finance action by a rigorous and outcome-oriented catalyzation of climate finance, including through private sector crowd-in.

5. Investment in the region and beyond.

KEY EXPECTED OUTCOMES

Assessment of climate finance needs and architecture of financial institutions/climate finance in the region
Developed and adopted/implemented Climate Finance Mobilization and Access Strategy at the highest political level
Consultation and validation of Climate Finance Mobilization and Access Strategy for the region, including mobilization and green finance matchmaking
Project pipelines matched to finance with key public and private financing institutions, both domestic and international, via several Green Investment Catalyst Roundtables and other pertinent engagements in the region
An important network of focal points and champions established to support the project and long-term climate finance strategy