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Montenegro exhibits a pronounced vulnerability to the impacts of climate change. Most climatic change will affect the Montenegrin economy and people through water related impacts, such as changes in precipitation volumes and patterns that will reduce water availability while increasing floods, droughts and landslides. Despite this pronounced climate vulnerability of the water sector in Montenegro – which is recognized by its GCF Country Programme adopted in May 2021 – Montenegro’s existing pipeline of projects targeting climate finance only includes one early-stage water sector project. There is a clear need in the country for enhanced knowledge and capacity for climate adaptation and mitigation in the water sector - this need has been recognized as one of seven priority needs in Montenegro’s GCF Country Programme.
This proposed Readiness request will directly address this need and the underlying barriers that are currently preventing the adequate identification, development and implementation of inclusive projects aimed at mobilizing climate finance in the Montenegrin water sector:
Under this GWPO-led 2023 Readiness Request, climate finance programming for Montenegro’s water sector will be greatly enhanced by building the technical and institutional capacity of water sector stakeholders to participate in climate finance programming. First, key water sector stakeholders will be trained on climate change planning and climate finance (building on existing GCF programming guidance, including for water and related sectors, as well as tailoring GCF training modules, where made available, to the Montenegrin context), and a working group for water and climate change will be established to facilitate effective communication with the NDA – both will include public and private sector stakeholders. Second, Montenegro’s water sector pipeline will be enhanced by developing and implementing a gender-responsive screening methodology and tool to help identify viable climate finance projects, particularly for the GCF, suitable for investment for the Adriatic watershed, and to optimize these projects for achieving sustainable development co-benefits at the design stage – these will be presented in a climate-resilient water investment plan for Montenegro. Importantly, a GCF Concept Note on water will be developed in collaboration with all key stakeholders and submitted to the GCF, in order to accelerate the advancement of Montenegro’s pipeline in this critical sector. An online knowledge management platform for climate finance projects will also be established. The activities in this Readiness will be implemented in close collaboration with other existing and planned Readiness activities (see section 1.11 below).
GWPO, as the delivery partner, will ensure that the products of this Readiness Request will be sustainable even beyond the implementation of the outlined activities. This will include providing continued advocacy and support for the furthering of Concept Notes to Funding Proposal stage.