A Practical Guide to Understanding and Establishing Climate Finance Units

Year Published

2025

Contributing Organizations

UK Foreign, Commonwealth & Development Office (FCDO)

NDC Partnership

Type of Resource

Research/Insights Report

Languages

English

Relevant Topics

Core Topic

Climate & Transition Finance

Topic 2

Climate Policies & Frameworks

Topic 3

Climate Strategy & Capabilities

Target Audience

Governments & Policymakers

Financial Services Providers

MDBs/DFIs

Relevant Geography

Global

Africa

Asia & the Pacific

Latin America and the Caribbean

Oceania

Resource Description

This policy brief offers guidance for designing and implementing Climate Finance Units (CFUs) within governments to improve planning, access, and organisation of climate finance. It supports Taskforce on Access to Climate Finance members and the wider climate finance community.

Why This Matters

CFUs can help governments align and scale climate finance flows, improving efficiency and impact in delivering national climate and development goals.

Key Insights

Positions CFUs as key to mobilizing finance for Nationally Determined Contributions (NDCs), National Adaptation Plans (NAPs), Long-Term Low Emission Development Strategies (LT-LEDS)
Warns that without skilled, dedicated units, countries risk inefficiencies, duplication, and misalignment
Outlines core elements of effective CFUs, including clear mandates, strong institutional anchoring, skilled staff, and collaboration systems
Highlights lessons from countries including Rwanda, Bangladesh, Jamaica, and Fiji
Stresses the importance of capacity building and sustained institutional support

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