Building on the foundations laid by Saint Lucia’s first GCF readiness grant (LCA-RS-001), this project aims to enhance the country’s National Climate Change Financing Framework. Through additional support to the Department of Economic Development, the project will focus on establishing and validating institutional arrangements that enable efficient climate finance coordination. This effort will include the completion of a Climate Public Expenditure Institutional Review Report and the formalization of governance structures, which will be shared with key stakeholders nationally, regionally, and internationally.

The key outputs include:

1. Validated Climate Public Expenditure Institutional Review Report.

2. Institutional arrangements for Saint Lucia’s National Climate Change Financing Framework.

3. Dissemination of the institutional framework to enhance awareness and engagement with stakeholders across various levels.

The objective of this project is to strengthen institutional capacity within Saint Lucia to effectively coordinate climate finance. This will involve validating and establishing governance structures to guide the strategic use of climate finance resources, enabling the country to better access and manage climate funding while supporting its transition to a low-carbon, climate-resilient economy.

Saint Lucia is highly susceptible to the impacts of climate change, having ranked among the top 10% of countries facing losses from climate-related natural disasters between 1997 and 2016. According to the National Adaptation Plan (2018–2028), the economic cost of inaction on climate change could reach 24.5% of GDP by 2025 and escalate to 49.1% by 2100, underscoring the urgency for resilience-building measures to protect the economy and livelihoods.

To address these challenges, Saint Lucia’s National Designated Authority (NDA) to the Green Climate Fund (GCF), the Department of Economic Development, initiated the establishment of a National Climate Change Financing Framework in 2018 through its first GCF Readiness and Preparatory Support Program Grant (LCA-RS-001). However, additional support is needed to ensure that investments in climate action are implemented through a coordinated and strategic approach. This project seeks to provide such support by further strengthening institutional and governance structures for climate finance coordination.

The NDCP request focuses on enhancing the Department of Economic Development’s capacity to govern climate finance, ensuring that resources are used effectively to support Saint Lucia’s climate resilience objectives.

Improved Climate Finance Coordination:

The validated Climate Public Expenditure Institutional Review Report will provide a comprehensive understanding of current climate-related expenditures and gaps, enabling better coordination and tracking of climate finance across government sectors.

Additionally, options for integrating climate tagging into Saint Lucia’s Finance Tracking System will streamline the process of identifying and monitoring climate-related spending, improving overall coordination and resource allocation.

Strengthened Governance Structures:

The design, establishment, and launch of a Climate Finance Unit within the Department of Economic Development will create a dedicated institutional mechanism for managing and overseeing climate finance activities. This will support transparent, strategic, and accountable governance, ensuring that resources are effectively used to meet climate resilience goals.

Increased Access to International Climate Finance:

By strengthening institutional capacity through the establishment of the Climate Finance Unit and by enhancing finance tracking systems, Saint Lucia will be better equipped to access international climate finance. This will empower both public and private sectors to scale up their climate action efforts and secure necessary funding for adaptation and mitigation projects.

Enhanced Knowledge Sharing and Stakeholder Engagement:

Through peer-to-peer knowledge exchange activities and the development of knowledge products about Saint Lucia’s climate financing experiences, this project will foster greater collaboration and learning among key national, regional, and international stakeholders. Disseminating the new institutional framework will enhance understanding and engagement, ensuring that the country’s climate financing efforts are widely recognized and supported.