Developing countries require substantial financial resources to pursue ambitious climate mitigation and adaptation actions. This paper examines the experiences of national institutions in developing countries that have sought direct access to multilateral climate funds, with the aim of identifying practical lessons that can help others plan for, secure and effectively use climate finance to support sustainable development goals.
Direct access allows national and subnational institutions to receive funding directly from mechanisms such as the Adaptation Fund and the Green Climate Fund, rather than relying on international intermediaries. The approach is intended to reduce transaction costs and strengthen national ownership over climate finance. Although still relatively new, with accreditation processes beginning in 2010 for the Adaptation Fund and 2015 for the Green Climate Fund, direct access has already generated valuable insights for institutions considering this pathway.
One key lesson is the importance of careful planning before engaging with climate funds. Countries benefit from linking climate finance efforts to broader national strategies on climate change and development, and from establishing strong coordination mechanisms. Selecting appropriate national institutions for roles such as designated authorities, implementing entities and executing entities is critical, as these choices influence both the ease of accessing funds and the effectiveness of project delivery.
The accreditation process itself is widely seen as demanding but ultimately beneficial. Institutions pursuing accreditation must commit significant human and financial resources, demonstrate a clear understanding of accreditation standards and be able to document internal systems and processes. Challenges often arise not from failing to meet standards, but from difficulties in compiling and presenting required documentation. Flexibility, early engagement with fund secretariats, senior-level support and access to readiness assistance have proven important in overcoming these barriers.
After accreditation, institutions face further challenges in designing and implementing projects and programs. Successful proposals tend to align closely with the objectives of the climate fund, national priorities and the implementing institution’s mandate. Careful selection and capacity-building of executing entities, along with strong monitoring systems, help ensure compliance with fund requirements and allow institutions to adapt during implementation.
Across all stages, engaging external stakeholders has strengthened project design, improved implementation and enhanced accountability. Overall, the experiences documented in this paper suggest that while direct access to climate finance is complex and resource-intensive, it offers significant opportunities for developing countries to build institutional capacity, enhance national ownership and deliver more effective climate action.
