Nicaragua relies on concessional international climate finance from development partners to finance its development and climate change objectives. However, the achievement of Nicaragua’s NDC targets requires a substantial increase in the volume of public and private, national and international climate finance invested in the country.  

As a result of the limited fiscal space and decreasing ODA resources, the Government of Nicaragua is facing the necessity and challenge of increasing access to international climate finance and private sector contribution to the country’s NDC targets. The proposed Readiness grant aims to enhance the strategic frameworks and institutional capacity of the Government of Nicaragua to increase the mobilization of national and international climate finance and private investments for the implementation of the nationally determined contribution (NDC) and resilient, inclusive, and low-carbon development.