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National Climate Finance Vehicles: Best Practice Insights from International Case Studies

The report presents a model design framework and readiness criteria for clarifying the key factors supporting effective operation and achieving prioritized climate outcomes and sustainable development.

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This working paper developed under ADB’s Nationally Determined Contribution (NDC) Advance technical assistance platform sets out the important role that national climate finance vehicles can play in stimulating private investment in LCCR development. The paper also describes key challenges and solutions to successfully establishing and operating a financing vehicle in a developing country. Informed by three case studies of national financing vehicles from Australia, Indonesia, and Thailand, the paper presents a model design framework and key readiness criteria defining the key enabling factors and design choices for national climate finance vehicles to support the achievement of LCCR investment scale-up effectively. The working paper concludes with key recommendations for developing member countries (DMCs) to inform their approach to designing and operationalizing a climate finance vehicle.