Trialling demand-led climate finance in Ethiopia: Towards effective disbursement modalities

Climate change poses a huge threat to developing countries, particularly to poor and vulnerable communities. Given the magnitude of the challenge, outside support is needed. Climate finance initiatives respond to this need by providing funding for 'climate smart' projects and programmes. Potentially, such support can create transformative opportunities for poor countries and communities, while building resilience to the grave threats posed by climate change impacts. Yet this landscape remains problematic, since climate finance is often inaccessible to the stakeholders who most need it and could perhaps make the best use of it, namely institutions from target countries. The Strategic Climate Institutions Programme (SCIP) Fund offers a pragmatic solution to this dilemma as well as a replicable model that is particularly relevant to vulnerable countries and communities. This follows from its emphasis on empowering diverse national stakeholders, fostering partnerships between institutions, and bolstering government.