Investment and Financial Flows (I&FF) methodology

Identifies costs of climate change measures and likely sources for investment funds

Experience shows that I&FF assessments have helped countries strengthen capacities to organise national level financial flows effectively, and to mobilise additional resources.

The purpose of UNDP’s Investment and Financial Flows (I&FF) assessments is to determine the costs of climate change measures and potential sources of investment funds. The starting point for the I&FF methodology is that to effectively address climate change adaptation and mitigation, decision makers recognise the need for solid information on current and future climate change-related investments and financial flows, as well as their timing, sources and investment entities. By using the I&FF methodology, countries can determine:

  1. how to organise Investment and Financial Flows efficiently
  2. what shifts in investments are needed
  3. what additional investments are needed to implement adaptation and mitigation measures and strategies at the national level.

The starting point is the question: ‘From a development perspective, what does my country need to do to address climate change in selected key sectors, and what financial landscape will be required to achieve those needs?’ Based on a team comprising of relevant Ministries with private sector, academia and non-governmental organisations, the methodology assesses the following questions:

  • What are the adaptation and/or mitigation options for selected key sectors in the next 25 years?
  • Who is currently investing in the sector? Who are the major players & funding sources within government, private sector and households?
  • What shifts/increases in I&FF will be needed in the sector?
  • What will be the overall needs for additional I&FF to address climate change?
  • What policies and incentives are suitable to induce the necessary shifts and changes?

The methodology consists of a manual, excel sheets, training and support material, examples and case studies in four languages. So far, 15 countries have conducted I&FF assessments, strengthening their capacity to better organise national level financial flows, and to mobilise additional resources.

 

Requirements

Training:
The I&FF methodology can be used without training, but training is recommended.
Costs of training depends on country needs.
Costs:
Using the tool:
Time needed:
About 8 months

Accessing the tool

Availablility:
Online: Available online at http://www.undpcc.org/en/financial-analysis/methodology
Languages:
English, French, Spanish, Russian
Contact:
Susanne Olbrisch, Climate Policy Specialist: susanne.olbrisch@undp.org
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Area of focus
Adaptation 3, Mitigation 3, Development 1

Published by:

UNDP

Location:

For global use