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Pacific Climate Change Finance Assessment Framework - Final Report

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Executive Summary

Forum Leaders have directed the Pacific Islands Forum Secretariat (PIFS) to assist in improving Forum Island Countries’ (FICs) access to and management of climate change resources. The assessment framework presented in this report is part of several initiatives being coordinated and/or supported by PIFS in response to this direction. These initiatives broadly include: development of this climate change finance (CCF) assessment framework, including piloting this methodology in Nauru; compilation of practical experiences in different financing modalities relevant to climate change; development of a Regional Technical Support Mechanism (RTSM); and ongoing support to effectively access and manage international climate change funding.

The Pacific Climate Change Finance Assessment Framework (PCCFAF) has been developed in response to the need to approach climate change financing in an informed way, commensurate with the specific circumstances and challenges of FICs. While existing global approaches are being developed and trialled, they do not always consider aspects that are particularly relevant to the situation of small island developing states. Rather than developing a parallel framework the PCCFAF blends Pacific relevant aspects, especially climate change sources and capacity, into existing assessment approaches. This approach has emanated from, and has been piloted and refined through a case study of Nauru.

The PCCFAF guides assessment of FIC ability to access and manage climate change resources across six interrelated dimensions, as listed below, and the potential of the country to utilise various modalities to assist in these efforts. The recommendations emerging from this analysis enable development of a CCF Action Plan. This Action Plan would outline a series of actions to guide efforts by national governments and development partners to improve a country’s approach to climate change financing.

Dimensions of Climate Change Financing

  1. Funding Sources
  2. Policies and Plans
  3. Institutions
  4. Public Financial Management and Expenditure
  5. Human Capacity
  6. Development Effectiveness

The framework assesses efforts being made at the national level by governments, donors and development partners and acknowledges the role played by sub-national governments, communities, civil society and the private sector, and efforts being made at the regional and international level. The PCCFAF focuses on efforts to meet the challenges of climate change; however these assessments are intricately linked to and provide the opportunity to take a renewed look at the effectiveness of overall development efforts. The cross-cutting nature of climate change requires national responses, which can bring together efforts focussing on specific sectors or issues.