Paraguay faces significant barriers in mobilizing and effectively utilizing climate finance, including limited institutional capacity to coordinate and access GCF funding, inadequate mechanisms to monitor climate finance flows, a lack of standardized criteria for green investments, and insufficient integration of climate change and sustainable development in the country's long-term development plans. These challenges restrict Paraguay’s ability to attract and deploy climate finance efficiently, slowing progress toward its climate change mitigation and adaptation goals. The primary stakeholders impacted by these barriers include government institutions responsible for climate action, private sector investors, and, ultimately, the broader population, which remains increasingly vulnerable to climate risks due to delayed and insufficient climate interventions. 

The goal of this proposal is for the Government of Paraguay to be able to develop the necessary capacity, strategic frameworks, knowledge sharing and coordination mechanisms to access, manage and coordinate GCF resources, monitor climate finance flows, prioritize climate action in planning and budgeting processes, and promote private sector investment in climate change mitigation. 

The objectives can be summarized as follows: 

• Strengthen the capacity of the Nationally Designated Authority (NDA) to effectively coordinate and manage GCF funding, and monitor and track climate finance flows. 
• Strengthen the capacity of the Agencia Financiera de Desarrollo (AFD) to comply with GCF’s accreditation standards and criteria. 
• Operationalize Paraguay’s Green Taxonomy to establish standardized definitions for green assets and investments, enhancing transparency and investor confidence. 
• Integrate climate indicators and targets into the Paraguay National Development Plan 2050, including a strategy for green job creation to drive sustainable economic growth.