E Co. bites: What are the biggest challenges in obtaining funding?
28 November 2018, Category: All insights, E Co. bites, Tags: Adaptation Fund, challenges, climate finance, ECo. bites, funding, gcf, GEF, Global Environment Facility, Green Climate Fund, NAMA Facility, project design, video, YouTube
Watch our brand new, bite-sized and digestible video series, sharing our insights and experiences of designing low-carbon, climate-resilient development projects, across the globe. We discuss the who, where, what, why and hows behind successfully obtaining funding from major donors, including the Green Climate Fund (GCF) and Global Environment Facility (GEF).
This is a tough question! There are a lot of challenges and they vary depending on the country, or the project sponsor, the accredited entity or the strategy in question. Generally speaking though, challenges may include trouble aligning project sponsor’s goals and local needs with the requirements of the finance source.
So, the issue could be securing co-financing, which for the Green Climate Fund is really crucial to demonstrate local buy-in. Adaptation projects, in particular, face this problem quite frequently as they often aren’t a funding priority and many adaptation projects just aren’t revenue generating.
So, in one of the adaptation projects we are currently working on, we are facing the challenge of identifying and securing co-finance. The government is not prioritising the project allocation of public funds is really slow and complex, in any event.
So, this could be a deal-breaker but there are almost always avenues to follow: what can we do? Can we have further engagement and dialogue with the government? Are there other sources of financing that we can pursue from private investors, bilateral or multilateral funds? So, to deal with issues like this, you have to have a Plan B and also a Plan C!
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