The Missing Answer

The Missing Answer:

An Introduction to Self-Directed Climate Finance Strategy

Our structures, our institutions, and our project pipelines must be credible and trustworthy, so that we never have to resort to simply saying, “trust me.”

The room had heard it all before.

The numbers. The deficits. The blame. The now familiar narrative of a continent underfunded and overexposed to a crisis it did little to create. It was the side event during COP30, and the air itself seemed to crackle with familiar frustration.

The moderator laid bare the stark realities: the colossal climate finance gap facing Africa; the corrosive impact of corruption; the drain of illicit financial flows and the opaque pathways that swallow well-intentioned funds before they ever reach the ground. Each point resonated deeply, painting a picture of a continent perpetually short-changed, battling an existential threat with severely limited resources.

The room was filled with earnest faces: African national government officials, NGO leaders, civil society advocate

and private sector innovators. They had just concluded showcasing their “impressively planned and project-based climate mitigation and adaptation activities” at several other side events, a testament to local ingenuity and immense effort. Yet, a common thread hung heavy in the air: the perennial question of how to bridge the financing gap for these critical initiatives.

The side events, while highly informative and inspiring in vision, often felt like preaching to the choir, spaces where compelling narratives circulated among those already convinced, with few international funders or key decision makers present to truly hear them.

By the time it was my turn to speak, the conclusion in the room had already been written. Africa was underfunded. The system was unfair. The gap was widening.

I sensed a collective sigh in the room; perhaps of resignation, perhaps of anticipation for yet another reiteration of blame. But I knew a different kind of conversation was needed.

“Before we claim, unequivocally, that Africa is disproportionately disadvantaged in climate finance flows”, I began, my voice steady and firm, “we must first ask ourselves some honest, penetrating questions”.

The murmurs subsided, giving way to a focused silence.

“Do African countries, at national and subnational levels, as well as within the private sector, genuinely have the capacity to identify all available climate finance streams? Do we possess a comprehensive understanding of the various financial instruments and their complex requirements? And, crucially, do we have effective structures in place to engage

meaningfully with international climate finance institutions?”

I paused, allowing the weight of the questions to settle.

“The problem, as I see it”, I continued, “is not merely a gap in finance; it is a profound structural failure in climate finance systems across much of the continent. And let me be unequivocal: without the right structures, access to climate finance remains out of reach, no matter how much is theoretically available or how deserving the projects may be”.

I went on to elaborate on the deficient components of this so called “structure”:

Awareness of Available Climate Finance

“It is not enough to simply know that funds like the Green Climate Fund exist. Do we understand the specific funding windows, eligibility criteria, application cycles, and due diligence requirements for each type of project and for each funder? Without this level of detailed awareness, opportunities remain invisible and ultimately inaccessible”.

Institutional Capacity to Attract and Manage Climate Finance

“This goes far beyond good intentions. Do our national designated authorities, implementing entities, financial institutions and project developers possess the financial management systems, environmental and social safeguard policies, governance frameworks and technical expertise required to prepare a concept note that stands a real chance of approval, let alone manage millions once the funds are secured?”

I paused, then pressed further, “No one will entrust you with significant funding without absolute confidence in your ability to manage it with integrity and transparency, and critically, to demonstrate measurable results. And let us be clear, the fiduciary standard, often perceived as a barrier, is in fact the very foundation upon which that trust is built”.

Even when funds are secured, do we truly have the implementation capacity on the ground? Do we possess the project management expertise, technical teams, supply chains, monitoring and evaluation systems required to ensure that climate finance translates into tangible mitigation and adaptation outcomes?

I concluded with a statement that struck a deep chord, “Our structures, our institutions and our project pipelines must be credible and trustworthy, so that we never have to resort to simply saying, ‘trust me”.

The uncomfortable truth, I argued, is that the perception of low absorptive capacity, weak governance structures and insufficient technical expertise often serves as a far greater deterrent than outright malice or even the lack of funds itself. Funders are inherently risk-averse; they seek predictable, well-managed pathways to impact.

When African entities lack the “right structure”, a comprehensive capacity that spans awareness, attraction, management and implementation, they are inadvertently

perceived as high-risk partners, regardless of the strength or merit of their underlying projects.

The solution, then, begins not merely with demanding more but with deliberately and meticulously building from within. Capacity development is not a secondary concern; it is the indispensable prerequisite for unlocking the vast sums of international climate finance that currently remain beyond our reach.

It is about equipping our people, strengthening our institutions and refining our processes until we are not only deserving of climate finance but demonstrably ready to manage it, deploy it effectively and deliver transformative results for a climate-resilient Africa.

The applause was hesitant at first, then gradually grew. It was not the easy answer but it was perhaps the necessary one. It shifted the conversation from a posture of perpetual victimhood to one of empowered agency, placing the imperative for capacity development squarely where it belongs: as the essential foundation for unlocking Africa’s full potential within the global climate finance landscape.

This response forms the foundation of this book: The Destiny of Readiness: Strategies for Scaling-Up Climate Finance for Emerging Economies: An Appreciative Intelligence Approach. At its core, the book seeks to support developing nations in building and strengthening their capacity to access international climate finance at scale.

In this context, the focus extends beyond government agencies to include the private sector, non-governmental organizations (NGOs) and civil society organizations

(CSOs), all of which play critical roles in the climate finance ecosystem.

This book draws on practical experience gained from supporting the implementation of a Green Climate Fund (GCF) Readiness and Preparatory Support Programme aimed at strengthening Nigeria’s capacity to pursue a low-emissions, climate-resilient development pathway.

It, however, integrates a novel approach to problem-solving: Appreciative Intelligence.

Do African countries across national and subnational levels and within the private sector genuinely have the capacity to identify all available climate finance streams? Do they possess a comprehensive understanding of the diverse financial instruments and the complex requirements attached to these funds?

Chapter 1

International Climate Finance

The Unpaid Climate Debt:

A Legacy of Emissions, A Future in the Balance

or centuries, the industrial growth of a few nations generated immense prosperity and stability, but at a cost borne by the planet, producing most historical greenhouse gas emissions.

Now, as the planet warms, the most severe consequences fall disproportionately on the developing world; nations with the fewest resources to cope with floods, droughts and rising sea levels.

The foundational framework of International Climate Finance (ICF) is rooted in the financial and moral contract established under the principle of “common but differentiated responsibilities” within the United Nations Framework Convention on Climate Change (UNFCCC). It is not charity; it is a vital mechanism through which historic emitters are expected to support vulnerable nations.

As we examine the dual imperatives of mitigating global warming and enabling stringent adaptation for survival, alongside the growing need to finance Loss and Damage, we must first understand the financial ecosystem underpinning the global fight for climate justice and planetary survival: international climate finance.

International climate finance refers to the financial resources provided by developed countries to developing countries to support their efforts in addressing climate change. This commitment is grounded in the recognition of the historical responsibility of developed countries for the majority of greenhouse gas emissions, as well as the principle of “common but differentiated responsibilities and respective capabilities” (CBDR-RC) under the United Nations Framework Convention on Climate Change (UNFCCC).

The primary objective of international climate finance is to support developing nations in both mitigating climate change by reducing their greenhouse gas emissions and adapting to its adverse impacts, including building resilience to floods, droughts and sea-level rise. Increasingly, it also seeks to address loss and damage arising from unavoidable climate impacts.

The climate crisis is a shared planetary threat, but the responsibility for addressing it is far from equal.

The history of international climate finance begins, not with an economic policy, but with a foundational ethical realization, rooted in the understanding that developing nations are often the most vulnerable to the impacts of climate change, despite contributing the least to historical emissions.

These nations face unique challenges across multiple dimensions, including heightened vulnerability driven by their reliance on climate-sensitive sectors like agriculture and fisheries, coupled with limited infrastructure to withstand extreme weather events. They also frequently contend with fragile ecosystems and high population densities in vulnerable areas.

Domestic resources, including financial capacity and technical strength, are critically limited in these nations. Integrating climate action with core development goals such as eradicating poverty and ensuring food security requires a level of investment that often far exceeds what local budgets can provide.

Based on this understanding, developed nations pledged to provide finance, technology transfer and capacity-building support to developing countries, acknowledging their (developed nations) historical role in contributing to climate change.

Mapping International Climate Finance

Navigating the global landscape of climate action requires a clear understanding of how capital flows from donors to the projects that need it most. International climate finance moves through several critical channels, each designed to address specific environmental challenges; from reducing emissions (mitigation) to building resilience against climate impacts (adaptation).

This section outlines the primary mechanisms currently driving these efforts:

Multilateral Climate Funds (MCFs)

MCFs are dedicated funds established under the UNFCCC or supported by multiple donor countries. They include:

The Green Climate Fund (GCF), the largest dedicated climate fund, which supports both mitigation and adaptation efforts in developing countries. It aims for a 50:50 balance between mitigation and adaptation and prioritizes direct access.

The Global Environment Facility (GEF), another major channel for international climate finance, which serves as a financial mechanism for several environmental conventions, including the UNFCCC. It finances projects related to biodiversity, climate change, international waters, land degradation and chemicals/waste.

The Adaptation Fund (AF), which finances concrete adaptation projects and programs in developing countries that are Parties to the Kyoto Protocol and more recently, the Paris Agreement. It is known for its strong operational modalities.

The Climate Investment Funds (CIF), administered by the World Bank. These comprise several trust funds (e.g., the Clean Technology Fund and the Strategic Climate Fund) designed to pilot low carbon and climate-resilient development.

Multilateral Development Banks (MDBs)

MDBs include institutions such as the World Bank, the African Development Bank (AfDB), the Asian Development Bank (ADB), the Islamic Development Bank (IsDB) and the Inter-American Development Bank (IDB). These banks integrate climate finance into their lending portfolios, often through concessional loans and grants. They also act as implementing agencies for various climate funds.

Bilateral Climate Finance

Bilateral climate finance refers to direct financial support from one developed country to another, typically channeled through national development agencies such as USAID, GIZ and DFID. This support is usually provided in the form of grants, loans or technical assistance.

Private Climate Finance

Private climate finance includes investments from private companies, financial institutions and investors in climate related projects in developing countries. This source of finance is critical for scaling up climate action but often requires de-risking mechanisms such as guarantees and concessional public finance to attract investment.

The Loss and Damage Fund

The Loss and Damage Fund was established at COP27 in 2022, held in Sharm el-Sheikh, Egypt. The following year, at COP28 in Dubai, the fund was officially “operationalized”, meaning that the rules governing its structure, its hosting (initially by the World Bank) and the first financial pledges were formally approved.

This fund aims to provide financial assistance to vulnerable developing countries that are disproportionately affected by the adverse impacts of climate change, specifically to address loss and damage that has already occurred or is unavoidable. Its modalities and capitalization are still evolving.

Green Engine: International climate finance is the veritable catalyst for economic growth, diversification and technological advancement in developing nations.

International climate finance presents significant opportunities for sustainable development in developing nations by providing the resources required to transition to low carbon, climate-resilient economies, while addressing their unique development challenges.

These opportunities span multiple sectors, fostering economic growth, technological advancement and improved social and environmental outcomes. Climate finance serves as a veritable tool for stimulating and supporting economic growth and diversification, particularly in developing countries, by funding investments in green industries and infrastructure.

A unique feature of climate finance is its ability to help developing countries leap into the future. It is, in many ways, a fast track to a low-carbon economy.

This funding is designed to facilitate technology transfer and local innovation. It enables these nations to quickly access and adapt advanced technologies for renewable energy, such as solar and wind, strengthen infrastructure, transition to climate-smart agriculture and improve waste management systems.

Essentially, this process allows the developing nations to “leapfrog” the older and often polluting development pathways taken by industrialized nations. It enables acceleration of climate action significantly, without the need to spend years developing solutions from scratch.

Climate finance often includes components for technical assistance and training, thereby building local expertise in green technologies, project management and climate policy development. This empowers local communities and institutions to effectively design, implement and sustain climate projects, including support for local research and development initiatives. This support fosters innovation, tailored to specific national contexts, leading to the creation of new green products, services and business models.

Awareness of how climate finance strengthens resilience remains limited across several sectors, including national governments, subnational authorities, NGOs and the private sector. In addition, there is a widespread lack of understanding that these financial flows are specifically designed to help developing regions prepare for extreme weather events.

In particular, the role of climate finance in funding critical infrastructure, such as early warning systems and advanced meteorological services, is often overlooked. These tools are indispensable for global stability, as they provide communities with the foresight needed to prepare for storms and other hazards, ultimately saving lives and minimizing economic losses across both social and industrial systems.

Moreover, there are available funding for supporting nature itself! We can invest in restoring mangroves, planting new forests or managing our water systems better. These nature-based solutions act like natural shields against climate impacts and they provide great bonus benefits too, like protecting local wildlife and providing cleaner water.

Investing in People and Equity

Another major objective of international climate finance is to prioritize vulnerable populations and integrate social considerations into climate projects that address poverty reduction, improve access to energy and water, and enhance agricultural productivity. It directly contributes to poverty alleviation in rural and marginalized communities.

In the context of the Paris Agreement, the profound socioeconomic impact of comprehensive climate action is described as the foundational goal of “poverty eradication”. This description is more than aspirational; it reinforces the principle that an effective global climate response must be intrinsically linked to human development.

Many climate finance initiatives now integrate gender considerations, ensuring that women, who are often disproportionately affected by climate change, are actively involved in project design and implementation, and are able to benefit from new opportunities.

Projects funded by international climate finance also typically involve local communities in decision-making processes, ensuring that solutions are culturally appropriate and responsive to local needs. In doing so, they help strengthen social cohesion and improve local governance structures.

Understanding Grants, Concessional Loans and Blended Finance

Climate finance is deployed through a range of financial instruments and access modalities. These instruments include grants, concessional loans, equity investments, guarantees and blended finance.

• Grants are non-repayable funds, often preferred for adaptation, capacity building and enabling activities.
• Concessional loans are offered at below-market interest rates, often with extended repayment or grace periods.
• Equity investments refer to funds provided in exchange for an ownership stake in a project or company.
• Guarantees are commitments to cover potential losses from a loan or investment, thereby reducing risk for private investors and encouraging their participation.
• Blended finance involves a combination of public (concessional) finance and private (commercial) finance to mobilize greater capital for climate projects. It often uses grants or guarantees to de-risk private investment and attract additional funding.

Access modalities are primarily categorized as direct and indirect.

• As the name suggests, direct access is a mechanism through which national or subnational entities in developing countries, such as national development banks, government ministries and local NGOs, apply directly for funding from certain climate funds (for example, the GCF and AF) once they are accredited. This approach fosters national ownership.
• Indirect access, on the other hand, involves projects implemented through international organizations (for example, MDBs and UN agencies) that are already accredited by climate funds. This approach is often faster but may offer less national ownership.

However, accessing international climate finance requires a deliberate, strategic and structured approach, often referred to as Climate Finance Readiness. It goes beyond simply having project ideas but instead emphasizes on building the systemic capacity to attract, absorb and effectively utilize funds. In other words, Climate Finance Readiness requires a structured approach.

Chapter 2

The Climate Finance Gap

The Dominant Frame

An objective analysis of the challenges expressed by the developing countries in accessing international climate finance.

espite the opportunities presented by international climate finance, developing nations frequently express concerns about the accessibility and equity of the system.

The dominant frame often characterizes these concerns as “conspiracy theories”, thereby overlooking the complexity of the realities and the efforts undertaken by developed nations and international institutions to address climate finance challenges.

A primary concern for developing nations is the significant gap between the climate finance pledges made by developed countries and the actual funds delivered. The long-standing commitment by developed countries to jointly mobilize $100 billion per year by 2020, first made at COP15 in Copenhagen in 2009, to support climate action in developing countries has remained a recurring point of contention.

While the $100 billion annual target was not met by the initial deadline, there has been measurable progress. Developed countries have steadily increased their contributions, with reports indicating a consistent upward trend in climate finance provided and mobilized. For instance, the OECD reported that climate finance provided and mobilized by developed countries reached $89.6 billion in 2021, demonstrating a clear trajectory toward the target, even if it was not achieved within the original timeframe.

The assertion that process of accessing international climate finance are “wrought with hurdles and difficulties” often overlooks the continuous efforts being made to streamline access and build capacity within developing nations. International climate funds, such as the Green Climate Fund (GCF) and the Adaptation Fund, have implemented various initiatives to simplify application procedures and provide technical assistance.

For example, the GCF has established a Readiness and Preparatory Support Programme, specifically designed to help developing countries strengthen their institutional capacities, develop climate strategies and prepare high quality project proposals. This programme directly addresses the capacity constraints frequently cited by developing nations.

Similarly, the Global Environment Facility (GEF) provides support for national communications and capacity-building efforts to help countries access funds more effectively. These mechanisms are not static; they continue to evolve in response to feedback and lessons learned, with the aim of making climate finance more accessible.

The perceived difficulties in accessing climate finance often reflect the inherent complexities involved in managing large scale international financial flows, as well as the need to ensure accountability and effectiveness. Climate finance projects, particularly those involving extensive infrastructure or complex adaptation measures require comprehensive due diligence, monitoring and evaluation frameworks, and strict adherence to international environmental and social safeguards.

These requirements are not arbitrary; they are designed to ensure that funds are utilized effectively, transparently and sustainably, thereby preventing misuse and delivering meaningful impact. The need for detailed project proposals, feasibility studies and risk assessments are standard practices in international development finance across sectors. Attributing these necessary safeguards to deliberate “hurdles” overlooks their critical role in ensuring responsible investment and achieving desired climate outcomes.

Moreover, the distinction between loans and grants is often determined by the nature of the project and its financial sustainability. While grants are essential for adaptation and capacity building efforts, loans are more appropriate for mitigation projects with revenue generating potential. This approach is an enabler of broader capital mobilization and promoting of long-term financial sustainability.

The claim of a lack of transparency often overlooks the extensive reporting and accountability frameworks already in place. Institutions such as the United Nations Framework Convention on Climate Change (UNFCCC) require detailed reporting on climate finance flows from developed countries through mechanisms such as Biennial Reports and National Communications. Furthermore, individual climate funds maintain dedicated transparency portals that provide public access to project information, funding decisions and financial disbursements. While there remains room for improvement, these mechanisms are designed to ensure accountability and enable scrutiny of how funds are allocated and utilized. Ongoing dialogue within the UNFCCC process, including through the Standing Committee on Finance continues to strengthen the transparency and effectiveness of climate finance delivery.

The Complexity Frame

Developing nations frequently express concerns about their limited ability to access international climate finance, often perceiving existing mechanisms as burdensome and insufficient. Rather than dismissing these concerns as conspiracy theories, examining them through the lens of complexity theory offers a more nuanced and constructive understanding.

This perspective highlights both the inherent structural gaps within developing nations and the intricate nature of the global climate finance system. These challenges arise from a confluence of interconnected factors, forming a complex adaptive system in which interventions in one area can produce unintended consequences in another. As such, the barriers are not necessarily the result of deliberate intent but rather emergent properties of a highly interconnected and often opaque system.

Against this backdrop, reframing the difficulties faced by developing countries in accessing international climate finance (at scale) through the lens of complexity theory, with a focus on inherent structural gaps rather than conspiracy-driven interpretations. First, it is essential to recognize that these challenges are not isolated; they are interconnected elements within a complex adaptive system, where factors such as readiness gaps, limited absorptive capacity and governance constraints interact to create systemic barriers.

A significant structural gap lies in the readiness of developing countries to engage effectively with international climate finance mechanisms. This often manifest as a lack of detailed national climate strategies, inadequate institutional frameworks and insufficient technical expertise to develop bankable projects that align with donor requirements. For instance, translating national climate priorities into concrete, fundable projects involve complex technical assessments, financial modelling, and environmental and social impact analyses; all of which require specialized skills and resources.

Developing nations also frequently struggle with limited internal and absorptive capacity. This means they lack the human resources, technical expertise and institutional structures required to manage and implement climate finance projects once funds are secured. These gaps include a shortage of trained personnel in areas such as project management, financial oversight, monitoring, evaluation and environmental safeguards. Even after funds are disbursed, their efficient and effective utilization can be constrained by these limitations, leading to delays, inefficiencies and in some cases, the return of unspent funds.

International climate finance institutions often impose what are perceived as stringent fiduciary and safeguard standards. These are intended to ensure accountability, transparency and environmental and social responsibility. While such standards are essential for preventing the misuse of funds and ensuring sustainable outcomes, developing countries often find them difficult to meet due to differing national regulations, limited institutional capacity and the high transaction costs associated with compliance.

Navigating complex procurement rules, environmental impact assessments and social equity requirements can present significant challenges, particularly for smaller nations with fewer resources. The perceived burden of these standards can deter countries from applying for funds or delay project implementation.

Corruption and governance challenges represent a critical structural gap that can undermine trust and efficiency in climate finance flows. Weak governance structures, lack of transparency and susceptibility to corruption may result in the diversion of funds, reduced project effectiveness and diminished confidence among international investors and donors. This is not to suggest that all developing countries are corrupt but rather that the perceived risk associated with governance weaknesses can significantly influence the willingness of international financiers to engage. Addressing these challenges requires systemic reforms, strengthened anti-corruption institutions and enhanced transparency, as well as accountability in public financial management.

However, developing countries often lack the enabling environments, policy frameworks and financial instruments needed to attract private sector investment. These include perceived investment risks, unclear regulatory frameworks, limited access to de-risking instruments and underdeveloped local financial markets. Bridging this gap requires innovative financial mechanisms, strengthened capacity for project developers and a more attractive investment climate supported by targeted policy reforms and risk-mitigation strategies.

Finally, the lack of effective tracking and transparency mechanisms within developing countries hinders sound climate finance management and accountability. Without clear systems to track fund flows, monitor project progress and report on outcomes it becomes difficult to assess the effectiveness of climate investments or identify areas for improvement. This gap also contributes to perceptions of governance weaknesses and makes it harder to demonstrate impact to donors and international partners. In this context, establishing comprehensive national monitoring, reporting and verification (MRV) systems is essential for building trust, demonstrating progress and attracting further investment.

It is evident that these structural challenges are not isolated; rather, they are interconnected, forming a complex web of constraints that affect how developing countries access and utilize climate finance. We shouldn’t view these issues as minor setbacks or simply “bad luck”. They are embedded within a broader system of interrelated challenges. Addressing them therefore requires a holistic approach, one that prioritizes building internal capacity, strengthening institutions, improving governance and developing innovative financing strategies. In doing so, the focus shifts toward addressing root causes rather than reacting to isolated problems.

Practical Demonstrations

An anecdote from a capacity building session for subnational officials in a developing country, where an official humorously (yet revealingly) referred to “COP” (Conference of the Parties) as a “Cup”, vividly illustrates a broader challenge in international climate engagement: a significant gap in understanding the objectives and mechanisms of global climate processes among many participants from developing nations.

This is not an isolated incident but rather a symptom of deeper systemic issues, which complexity theory helps to explain more clearly. The official’s comment, although seemingly humorous, highlights a critical point: for many participants, engagement in events such as COP is often viewed through the lens of immediate, tangible benefits rather than as a complex diplomatic and technical process aimed at long-term policy development and resource mobilization.

This perspective frequently stems from limited prior exposure, inadequate preparatory training and a disconnect between national priorities and the intricate workings of international climate governance.

Applying a conspiracy theory lens to the challenges experienced by COP participants from developing countries is more revealing, as it highlights the emergent properties of disconnected systems. The “Cup” comment can be understood as an emergent property of a system in which local realities and international climate diplomacy operate with vastly different expectations and interpretations. The official’s perspective likely stems from a context where conferences typically culminate in tangible, visible outcomes or resources to be “brought back”. In contrast, the abstract nature of policy negotiations, capacity building and networking at COP is not immediately apparent or fully valued without proper framing and preparation.

This disconnect produces what can be described as “systemic surprise”, where the expected outcome (a “Cup”) does not align with the actual outcomes, such as policy frameworks, partnerships, knowledge exchange and networking opportunities. Furthermore, reinforcing loops of misinformation and inadequate preparation also play a significant role. Many COP participants from developing countries attend the apex climate conference without sufficient preparatory training. As a result, their experiences often reinforce existing misunderstandings. Some perceive COP as a venue for immediate benefits, such as grants or direct climate finance, without recognizing that these outcomes are typically the result of longer-term processes rather than one-time events.

In many cases, participants return without a clear understanding of outcomes or how to effectively leverage their engagement. This feeds into a negative feedback loop within their organizations or institutions, reinforcing the perception that COP attendance is unproductive, a “travel opportunity” or merely a “jamboree”. Over time, this perception discourages investment in proper preparation, structured participation and capacity building.

Preaching to the Choir

At major conferences such as COP, a common dynamic often referred to as “preaching to the choir” can be observed. This typically occurs during side events hosted by developing countries, where government officials, NGOs and private sector actors present their work and achievements.

The challenge is that these presentations are often held within national pavilions, meaning the audience is largely composed of fellow nationals. As a result, key international climate finance institutions and decision-makers who are critical for unlocking funding and partnerships are frequently absent. This creates a paradoxical situation.

Participants often leave feeling accomplished due to successful presentations of their projects, yet they may not have made any tangible progress toward connecting with relevant funding institutions or initiate partnerships that their climate initiatives urgently require. The core challenge lies in the misalignment between communication strategies and audience targeting. Representatives from developing nations at COPs are often eager to showcase their climate action efforts, share best practices and highlight the challenges they face.

However, the format and content of these side events frequently cater to an internal audience, reinforcing existing narratives and celebrating domestic achievements rather than strategically engaging external stakeholders who hold the keys to financial and technical support. This misalignment may be attributed to several factors, including a limited understanding of the specific requirements and priorities of international climate finance institutions. Other contributing factors include constrained capacity to craft compelling proposals tailored to these entities, as well as a natural inclination to engage with familiar faces and established networks within national delegations.

For instance, presentations may highlight the success of a local reforestation project, emphasizing strong community participation and ecological benefits. While such achievements are valuable for internal reporting and national recognition, they may not attract external funding if they are not framed with a clear call to action and aligned with the investment criteria of institutions such as the Green Climate Fund or Multilateral Development Banks like the World Bank. These organizations typically seek projects that demonstrate scalability, replicability, detailed financial planning, clearly defined mitigation or adaptation outcomes and compliance with environmental and social safeguard standards.

Presentations that focus heavily on general awareness-raising or broad policy discussions, without explicitly addressing these criteria, are effectively “preaching to the choir”

The language and technical jargon used in these presentations can sometimes act as barriers. While understandable within a national context, they may not resonate with international finance experts who require clear, concise, data-driven information presented in a format that supports due diligence processes.

The opportunity cost of this approach is significant. Valuable time and resources are spent on presentations that, although well-intentioned, do not effectively bridge the gap between local needs and international support mechanisms. This creates a cycle in which entities in developing countries feel unheard or overlooked by international finance institutions, while financial organizations struggle to identify well prepared, actionable projects from these regions.

To overcome this, a strategic shift is required. Subnational entities, government and non-governmental organizations and private sector representatives from developing nations need to proactively research the specific mandates, investment priorities and application processes of key international climate finance institutions.

When preparing presentations for major conferences, they should be designed intentionally for the funding institutions rather than general audiences. Instead of broad awareness-raising, project presentations should clearly demonstrate:

How the project aligns with the funder’s criteria

Evidence of financial viability

Clearly defined and measurable impacts

This requires a shift toward more targeted engagement. It involves arranging pre-scheduled meetings with relevant finance representatives and preparing concise, impactful pitch decks that directly reflect their investment priorities clearly articulating value, alignment and expected outcomes.

Many COP participants return home feeling satisfied, yet without achieving meaningful outcomes. This pattern underscores the critical need for a more strategic and audience-centric approach to engagement at international climate fora.

Effective participation at COP requires a high degree of adaptive capacity; the ability to interpret complex information, engage in multi-stakeholder dialogues and align national strategies with evolving international frameworks.

Preparing for the Power of “What Works”

The earlier sections of this chapter have been essential in clearly mapping the persistent and often frustrating challenges facing access to climate finance, including structural gaps, institutional constraints and barriers to effective engagement. However, it is now important to move beyond a purely problem-focused narrative.

A key insight of this work is that scaling up climate finance is not achieved solely by cataloguing what is missing, but by deliberately identifying and strengthening what already works. In this transition, we introduce an innovative approach known as Appreciative Intelligence (ApI).

Appreciative Intelligence can be understood as a practical framework that shifts attention away from funding deficits and toward the identification, recognition and amplification of existing strengths, successes and capabilities within developing nations.

In the next chapter, we will explore this concept in greater depth. We will begin by defining Appreciative Intelligence and examining its foundational principles, including the capacity to recognize value in existing systems and the ability to envision positive, possibility-driven futures. From there, we will demonstrate how this strength-based perspective can reshape the climate finance discourse, transforming perceived constraints into actionable opportunities.

This foundational understanding is crucial. By the end of the next chapter, we will be better equipped to explore how Appreciative Intelligence can be practically applied to design and implement more effective and sustainable climate finance strategies.

Let’s get started on building that positive future together!

Chapter 3

Appreciative Intelligence

= Seeing the Mighty Oak in the Acorn

My Encounter with Appreciative Intelligence

n today’s rapidly evolving technological and intellectual landscape, the acronym “AI” has become universally associated with Artificial Intelligence.

To ensure clarity, avoid semantic confusion and clearly establish the distinct and specialized philosophy underpinning this book, the acronym “ApI” has been deliberately adopted to represent Appreciative Intelligence. This differs from the original use of “AI” by the proponents of Appreciative Intelligence.

The choice of “ApI” is not merely cosmetic; it is a strategic necessity that serves three critical purposes: eliminating ambiguity, enhancing professional clarity and future-proofing the framework. In essence, “ApI” functions as a clear marker of distinction, positioning this work as a form of strategic intellectual inquiry that is separate from, and not to be conflated with, the technological domain of Artificial Intelligence.

My Encounter with Appreciative Intelligence.

I vividly recall the first time I encountered the concept that would fundamentally reshape my perspective on challenges: Appreciative Intelligence. It was during a session led by one of its co-founders, Professor Tojo Thatchenkery of George Mason University. Prior to that pivotal moment, my approach to problem-solving had been largely traditional; identify the flaw, diagnose the failure and fix what is broken.

Professor Thatchenkery, alongside his co-author Carol Metzker, introduced this transformative concept in 2006 through their book, Appreciative Intelligence: Seeing the Mighty Oak in the Acorn. The title itself was a revelation! It pointed to a psychological capacity that goes beyond merely acknowledging problems, instead focusing on identifying strengths and uncovering opportunities embedded within them.

As Professor Thatchenkery explained, Appreciative Intelligence is more than optimism; it is a profound capability, defined as the ability to perceive the positive, inherent, generative potential within a given situation and to act intentionally to transform that potential into tangible results.

This competence, I came to understand, is deeply rooted in Appreciative Inquiry. The Centre for Appreciative Inquiry (CAI) describes it as an energizing and inclusive process that fosters creativity through the practice of positive inquiry.

Where I once began difficult conversations by asking, “What went wrong?”, I learned to ask instead, “What are we doing well that we can build upon?” This subtle shift in perspective proved transformative.

The impact on my personal approach was profound: I no longer viewed a struggling project as a failure, but as an “acorn”; a situation containing unexpressed yet inherent potential. Rather than focusing on what was lacking, I became intentional about recognizing and leveraging existing strengths.

This shift, guided by the principles of Appreciative Intelligence (ApI), represents the difference between merely fixing what is broken and building something new and better. It is the difference between coping with change and intentionally transforming potential into meaningful, positive outcomes.

The Handshake: Intelligence Meets Inquiry

When I first learned about Appreciative Intelligence, I understood it as the “seeing”; a cognitive shift that enabled me to look at a complex, tangled problem and immediately recognize the “mighty oak in the acorn”. As defined by Professor Tojo Thatchenkery and Carol Metzker, this ability felt like a new lens, an enhanced way of perceiving inherent, positive potential.

Appreciative Intelligence can be understood as a personal competence, similar to emotional intelligence or creativity. It is a psychological capability that operates within the individual; the internal spark that guides how one directs attention, energy and language toward what gives life to a system, rather than what diminishes it.

However, what happens when this internal spark is extended beyond the individual and applied within teams or organizations? This is where Appreciative Inquiry becomes essential. If Appreciative Intelligence is the ability to see the “oak”, then Appreciative Inquiry is the structured methodology through which others are engaged to help you plant, nurture and bring that potential to life. Imagine an individual with a strong capacity for Appreciative Intelligence, someone who excels at navigating challenges and sustaining personal motivation. This, in itself, is a powerful starting point!

However, creating large scale and lasting change across an organization or community requires more than individual capability. It requires a vehicle, a shared language, a structured process and a mechanism for transferring that positive vision and mobilizing others.

That vehicle is Appreciative Inquiry.

In essence, Appreciative Intelligence and Appreciative Inquiry operate in tandem. Appreciative Intelligence represents the personal capacity that informs perspective, while Appreciative Inquiry provides the structured, collective process through which that perspective is translated into shared action. It is this integration that ensures the collaborative process is both authentic and grounded in reality, ultimately enabling the creation of a shared and positive future.

The 5 Ds of Appreciative Intelligence

As our understanding deepens, it is becoming clear that Appreciative Inquiry is not merely a personal trait, but a structured, external process developed by David Cooperrider and his colleagues. It provides a systematic, strength-based approach to driving meaningful change.

Appreciative Inquiry takes the philosophical idea of Appreciative Intelligence (focusing on the positive creates a positive reality) and transforms it into a five-step journey.

This five-step journey is called the 5-D Cycle.

A useful way to understand this relationship is to view Appreciative Intelligence as the engine and Appreciative Inquiry as the vehicle. Accordingly, the structure we will use for our ApI framework is built directly on the 5-D cycle. This framework gives individuals and organizations clear mechanism to explore their strengths and “positive core” to achieve their desired outcomes.

We will now walk through each of these “D” components of Appreciative Inquiry and how they guide meaningful change: Define, Discover, Dream, Design and Destiny.

Design. This is the starting point, the “pre-work” phase. Instead of framing a problem (e.g., “Our turnover is too high”), the focus shifts to defining an affirmative topic (e.g., “Creating a culture where people love to stay”). This simple shift sets the direction for everything that follows.

Discover. In this phase, we use conversations, interviews and storytelling to uncover what is already working. The focus is on identifying the “positive core”; the moments, patterns and strengths that show success already exists within the system. Rather than asking what is wrong, we ask what is working and why.

Dream. Envisioning “what Might Be”. Here, we build on what was discovered and begins to imagine the future. It’s a space for bold thinking. If the best moments we’ve seen became the norm, what would that future look like? This phase invites creativity and shared vision.

Design. Determining “What Should Be”. This is the bridge between the Dream and reality. We co-create “Provocative Propositions”, statements that describe the ideal organization. You consider the structures, processes and policies needed to make the Dream a reality.

Destiny. Creating “What Will Be”. The final phase focuses on implementation and sustainability. It’s not just a “to-do list”; it’s a commitment to a new way of being. It’s about bringing the vision to life and sustaining it. Because the plan is co-created, there is usually high energy and a strong sense of shared “destiny” to see it through.

The application of the 5-D Cycle as an Appreciative Intelligence process may feel somewhat unclear at this stage but as we continue to explore its real-life application, a clearer understanding will emerge. Let us begin with a simple practical example, the story titled The Whispering Winds of Adagba.

The Whispering Winds of Adagba

One evening, after a particularly frustrating day of data collection, Dr. Maria Okocha found herself sitting with Mama Odulia by the flickering light of a kerosene lamp. Instead of asking about their problems, Dr. Okocha, almost on impulse, asked, “Mama Odulia, tell me about a time when the Adagba Community faced a great challenge from the sea and how your people overcame it. What was working well then?”

Mama Odulia’s eyes, usually clouded with worry, brightened. She began to speak of the “Great Storm of ‘88”, a typhoon that had threatened to wipe the Adagba Community off the map. She recounted how the entire village; young and old had worked together to reinforce their homes with mangrove wood, how the women had organized food and shelter, and how the men, drawing on their deep knowledge of the tides, had guided their boats to safe harbors.

She spoke of the Otu; the spirit of communal cooperation that had seen them through. In the traditional Ijaw language, this term emphasizes that life is lived collectively and cooperation is an intrinsic quality of the community. She also proudly described the ancient practice of planting Agala (mangroves) along the coastline, a tradition passed down through generations that had always protected their shores. “The Agala are our guardians,” she said. “They stand strong against the waves”.

This conversation became a turning point for Dr. Okocha. She realized her previous approach had been misdirected!

Instead of focusing on what was broken, she needed to understand what was strong, what had always sustained the resilience of the Adagba Community. In that moment, she began to redefine her approach, consciously shifting toward an Appreciative Intelligence perspective.

Sighting Phase: Unearthing Adagba's Strengths

The next day, Dr. Okocha organized a series of “storytelling circles” rather than conducting formal surveys. She invited members of the community to share their proudest moments, their most successful adaptations to the sea’s challenges and their hopes for the future.

The stories flowed freely.

Fishermen spoke of their intricate knowledge of fish migration patterns passed down from their fathers which allowed them to find bounty even when others struggled. Women shared their traditional methods of preserving fish and cultivating resilient root crops in their gardens. Across every story, the Otu emerged as the bedrock of the community, a powerful force that bound them together. They also highlighted the effectiveness of their traditional Ayiba system, a customary marine resource management practice that ensured sustainable fishing.

Dream Phase: Envisioning a Resilient Future

Building on these stories, Dr. Okocha facilitated workshops in which community members were asked to imagine the Adagba Community in 20 years, thriving and resilient despite a changing climate.

“What would Adagba look like if it were even stronger, even more connected to the sea, and even more protected?” she asked.

The dreams were vibrant: a coastline lush with healthy mangroves, abundant fish in the sea, homes built to withstand any storm and children learning the ancient wisdom of their ancestors alongside new technologies. They envisioned a “Green Wall of Agala” : an expanded mangrove forest that would protect their homes and nurture marine life.

Design Phase: Co-Creating Solutions

From these dreams, concrete action plans began to emerge. The community, empowered by the recognition of its own capabilities, proposed solutions deeply rooted in its culture and knowledge.

They decided to launch a large scale, community-led mangrove reforestation project, building on their existing Agala planting traditions. They planned to integrate their traditional understanding of tides and weather patterns with modern early warning systems. They also proposed establishing a community-managed marine protected area, building on their Ayiba system, to ensure the long-term health of their fishing grounds. The state government, now seeing the community as partners rather than beneficiaries, committed to providing technical support and resources for these community-driven initiatives.

Destiny Phase: Sustaining the Positive Change

Over the next few years, the “Green Wall of Agala” began to take shape. Thousands of mangrove saplings, nurtured by the villagers, took root along the coastline, creating a natural barrier against the encroaching sea. The community-managed marine protected area led to a remarkable recovery in fish stocks. The integrated early warning system combining local wisdom with modern technology proved invaluable during subsequent storms, enabling timely evacuations and minimizing damage. The spirit of Otu flourished, strengthened by shared success.

The Appreciative Intelligence approach shifted the focus from community vulnerabilities to inherent strengths and traditional knowledge. This transition led to community-led, sustainable climate adaptation solutions, including expanded mangrove reforestation and the integration of traditional marine resource management with modern practices.

The Adagba Community, once resigned to its fate, became the architect of its own resilient future demonstrating that by focusing on what gives life, even the most daunting challenges can be transformed into opportunities for growth and empowerment.

Appreciative Intelligence as a Strength-Based Approach

The story of The Whispering Winds of Adagba illustrates Appreciative Intelligence in action. It exemplifies a strengths-based approach to leadership development and organizational change.

Appreciative Intelligence focuses on identifying and building upon what works well within individuals, teams and organizations, rather than dwelling on problems or deficits. It is rooted in the belief that every human system possesses elements that make it vital, effective and successful. By focusing on these positive aspects, it becomes possible to foster growth, innovation, and lasting change.

This approach contrasts with traditional problem-solving methods that often-emphasized past failures and shortcomings approaches that can drain energy and weaken motivation. Instead, as seen in the story of The Whispering Winds of Adagba, Appreciative Intelligence encouraged a shift in mindset toward possibility and aspiration, seeing the “mighty oak in the acorn”.

Appreciative Intelligence is fundamentally about cultivating a “growth mindset”, where individuals and systems frame their perspectives around possibility and aspiration. It requires a tolerance for ambiguity and uncertainty, combined with a belief that actions matter and persistence is essential to achieving goals.

Appreciative Intelligence has been successfully applied across diverse settings, including large corporations such as Apple and Johnson & Johnson, as well as non-profit organizations, government agencies and educational institutions. It has proven especially effective in large scale organizational change, team leadership, one-on-one coaching and in advancing diversity, equity and inclusion. Appreciative Intelligence offers numerous benefits through its unique elements:  

Focus on Strengths. It energizes organizations for positive change and innovation by leveraging existing strengths, enhancing competence and fostering a culture of continuous learning.

Encourage Creativity and Innovation. By focusing on positive outcomes and possibilities, it stimulates creative thinking and innovative approaches, both of which are essential for organizational adaptability.

Foster Commitment and Participation. The collaborative and inclusive nature of Appreciative Inquiry encourages stakeholder participation and commitment, thereby reducing resistance to change.

Cultural Shift. It addresses change at a cultural level, promoting a holistic systems approach that is neither strictly “top-down” nor “bottom-up” but integrated and participatory.

Resilience and Wellbeing. It helps individuals and systems move from a deficit-based mindset to a strengths-based perspective, building resilience and supporting growth, particularly during times of uncertainty.

Life Application

Appreciative Intelligence serves as a powerful catalyst for transformation across diverse sectors of society. By reframing challenges as opportunities and focusing on inherent assets rather than deficits, this mindset enables individuals and collectives to design more resilient futures. From the strategic restructuring of global corporations to the grassroots empowerment of local communities, its principles provide a practical framework for sustainable growth.

The versatility of this approach is evident in its application across several key areas of practice:

Organizational Development and Change Management. Organizations use Appreciative Intelligence to facilitate positive change by focusing on peak performance moments and what makes them successful, rather than dwelling on failures. This often leads to more engaged employees and more sustainable transformation.

For example, a hospital may use Appreciative Intelligence to improve patient care by studying instances of exceptional service, identifying the factors that made them possible and replicating those conditions across the organization.

Leadership Development. ApI equips leaders with the ability to recognize untapped talent and foster innovation within their teams. Leaders with strong Appreciative Intelligence are better positioned to inspire others, build positive work environments and navigate challenges constructively. They focus on developing strengths and cultivating a shared vision of success.

Personal Growth and Coaching. Individuals can use Appreciative Intelligence to identify their unique strengths and align their personal and professional paths with their core values. It supports the development of resilience, wellbeing and problem-solving capacity. By intentionally focusing on positive experiences and strengths, individuals cultivate a more optimistic outlook and stronger sense of self-efficacy. A life coach, for instance, may guide a client in reflecting on past successes and inherent strengths to overcome current challenges.

Community Development. Appreciative Intelligence empowers communities to draw on traditional knowledge, local resources and collective strengths to address social and environmental challenges. Rather than focusing on deficits, this approach fosters ownership, collaboration and shared responsibility. It provides a strong framework for unlocking potential and driving positive change by emphasizing what is already working well.

Overall, by shifting from a deficit-based to a strengths-based perspective, Appreciative Intelligence enables a more constructive, inspiring and practical approach to navigating challenges and achieving desired outcomes.

"The Green Climate Fund (GCF), as the financial mechanism of the UNFCCC, places a high priority on its Readiness and Preparatory Support Programme and the justification is two-fold: to maximize the transformational impact of its investments and to ensure full country ownership and direct access."

Chapter 4

Climate Finance Readiness

The conventional Readiness Deficit model often overlooks the foundational strengths already present in developing nation; strengths that can serve as the bedrock for institutional capacity.

arlier, we described international climate finance as the financial resources provided by developed countries to developing countries to support their efforts in addressing climate change. Climate finance, without the prefix “international”, refers to financial resources from both domestic and international sources.

Against this backdrop, Climate Finance Readiness refers to the capacity of developing countries to plan for access, deliver, monitor and report on climate finance in ways that are effective, transformative and aligned with national development priorities. It is the process of building and strengthening the necessary institutional, strategic, fiduciary and technical systems required to effectively manage resources for a transition toward a low carbon, climate-resilient development pathway.

The Need for Climate Finance Readiness

The global effort to combat climate change requires a rapid and unprecedented mobilization of financial resources, primarily flowing from developed to developing nations. However, securing and effectively deploying this international climate finance, essential for funding both emissions reduction (mitigation) and climate impact adjustment (adaptation) projects remains a complex institutional challenge. The concept of a Readiness Program emerged to address this challenge.

The Readiness Program originates from the core design principles of major multilateral climate funds, particularly the Green Climate Fund, which was established as a financial mechanism of the United Nations Framework Convention on Climate Change (UNFCCC). It represents a critical capacity building process that empowers developing countries to develop strong national strategies, meet stringent international fiduciary and environmental standards, and ultimately gain country ownership of their climate action agenda.

Without comprehensive national readiness, climate finance remains largely inaccessible, often locked behind institutional barriers and gaps in technical expertise.

Do African countries, at various levels; national, subnational and within our private sector genuinely have the capacity to identify all available climate finance streams? Do we possess a thorough understanding of the different financial instruments and intricate requirements of these funds? And, crucially, do we have the effective structures in place for engaging with international climate finance organization?

For developing nations seeking to access climate finance, Readiness is vital for two primary reasons: navigating complexity and meeting standards, and ensuring country ownership and impact.

Navigating Complexity and Meeting Standards

International climate funds, such as the GCF and the Adaptation Fund, operate with stringent fiduciary standards and detailed Environmental and Social Safeguards (ESS), among other requirements. Without Readiness support, institutions often lack the capacity to meet these global standards and are therefore unable to effectively access or manage climate finance.

Ensuring Country Ownership and Impact

Readiness enables countries to translate their national climate goals such as Nationally Determined Contributions (NDC), and National Adaptation Plans (NAP) into a concrete, high quality pipeline of bankable projects. This strengthens country ownership by empowering local entities to define funding priorities, ensuring that climate investments are strategically aligned with national development plans and deliver transformative, sustainable results.

This necessity for enhanced Readiness is driven by several critical factors related to the scale and complexity of the international financial landscape, including:

Addressing the Climate Investment Gap

Bridging the massive shortfall between current funding levels and the trillions required for a global transition. Developing countries require significant investments in mitigation (reducing emissions) and adaptation (adjusting to climate change impacts). Without the capacity to develop high quality, bankable projects, these countries struggle to attract the necessary funding, particularly from the private sector.

Ensuring Country Ownership and Alignment

Guaranteeing that climate projects are not imposed externally but are integrated into a nation’s unique development priorities and policies. Climate finance should not be donor-driven; it should align with a country’s Nationally Determined Contributions (NDCs) and National Adaptation Plans (NAPs). Readiness strengthens national institutions (such as National Councils on Climate Change, Ministries of Finance and Ministries of Environment) to take the lead, ensuring that investments meet local needs and remain sustainable.

Navigating Financial Complexity

Managing the diverse and often fragmented requirements of various multilateral funds, each with its own accreditation and reporting standards. The global climate finance landscape is highly fragmented, involving multiple funds (such as the GCF, GEF and Adaptation Fund), bilateral agreements and a range of financial instruments (grants, loans and equity). Readiness helps countries understand and navigate this complex system, enabling them to match their needs with the most appropriate financing sources.

Enhancing Absorptive Capacity

Strengthening the internal ability of national and subnational entities to design, implement and monitor large scale climate investments in a transparent and efficient manner. Developing countries must be able to effectively absorb and utilize finance once it is secured. This requires strong national financial systems, effective inter-ministerial coordination and the capacity to monitor and evaluate project outcomes transparently.

Readiness Gaps in Developing Countries

Practical Examples of Climate Finance Readiness Gaps in Developing Countries

Based on the analysis of readiness challenges, the following examples illustrate how structural gaps in institutional, strategic and technical capacities manifest on the ground, hindering access to and the effective use of international climate finance.

Institutional Governance Gaps

• Weak National Coordination

In Country X, the dream of a climate-resilient future is being held back by a silent hurdle: institutional disconnect. While the goals are clear, execution often feels like two people trying to build the same puzzle without ever looking at the picture on the box. Here is how weak national coordination can turn good intentions into costly mistakes:

Imagine a country working hard to protect its resources. On one side of the capital, the Ministry of Water Resources successfully secures a loan for the “Dual Dam Project”; a state-of-the-art, climate-resilient dam designed to manage water flow for decades to come.

Meanwhile, just a few blocks away, the Ministry of Agriculture is celebrating a new grant for a large-scale irrigation scheme. Their plan relies heavily on the river’s historical flow to nourish local crops.

The problem is not a lack of effort; it is a lack of a unified voice. Because there is no strong National Designated Authority with the mandate to bring these departments together, both projects move forward in isolation.

The result is a hard lesson in governance: the dam is built and successfully regulates water flow as intended. However, the river’s course changes as flow patterns are altered, diverging from what farmers had relied on for generations. As a result, the irrigation project becomes unviable and the grant funding meant to support the community is effectively lost.

Direct Access Accreditation Hurdles

National entities often struggle to achieve or maintain accreditation with major funds (such as the GCF) due to gaps in meeting international fiduciary standards and Environmental and Social Safeguards (ESS) requirements.

In the world of international climate finance, Direct Access Accreditation represents a significant hurdle. Think of it as a high-stake passport application, where the required “stamps” are rigorous fiduciary standards and strict environmental safeguards. The story below illustrates how these gaps can lead to a kind of fiduciary freeze, delaying access to much needed funding.

In a small island state, a National Development Bank (NDB) set its sights on securing funding directly from the Green Climate Fund to protect its vulnerable coastlines. On the surface, the bank was a local success story, managing regional projects with confidence and financial stability.

However, once it stepped onto the international stage, it encountered a major obstacle.

The first challenge was a procurement gap. The bank’s internal procedures required only two bids for large contracts. In contrast, the GCF mandates a far more demanding international tender process, requiring at least three bids along with detailed conflict-of-interest disclosures for all relevant personnel. To meet these standards, the NDB had to overhaul its entire procurement system.

This process took time.

By the time the reforms were completed, the accreditation application had stalled for nearly two years. During that period, several critical funding cycles passed, leaving urgent climate projects delayed and communities waiting.

Investment Planning Gap

There is often a wide gap between a compelling national vision and the first brick being laid — the challenge of turning a high-level promise into a project that makes practical and economic sense.

Country Y set a bold goal in its national climate strategy: to build “Green, Climate-Resilient Cities”. But its planning agency could not bridge the gap between vision and delivery, leaving three questions unanswered:

• The “Where”: without feasibility studies, they could not identify which city would deliver the strongest economic and social return.
• The “How”: they lacked a financial model — user fees, local taxes, blended finance — to show investors how the project would sustain itself.
• The “When”: without a prioritization framework, they could not decide whether a new mass transit system was more urgent than a flood barrier.

The result was a $50 million concept note too vague for investors to act on — a striking vision that never became a fundable, well-prioritized pipeline.

Integration with National Budgeting

Climate priorities are often not fully mainstreamed into national budgetary processes, making it difficult to track and leverage international finance. When a Ministry of Environment received a reforestation grant, for example, the Ministry of Finance logged it under a generic “Land Management” code rather than as climate spending — so when the country reported to the UNFCCC, it could not demonstrate the domestic co-financing or strategic framework needed to secure further international support.

Technical and Capacity

These gaps relate to the specialized skills and systems required for execution, monitoring and compliance once funding is secured.

A. Absorptive and Execution Capacity

This reflects insufficient capacity at the local level for effective project implementation, including procurement, financial management and on-the-ground monitoring.

Consider the example of a coastal protection failure: a developing country secured $20 million for coastal mangrove restoration. However, the responsible local agency lacked staff with climate-resilient engineering expertise. As a result, they hired a contractor using outdated, non-climate-resilient specifications.

The project was completed, but during the very next severe storm season, the structures failed. The design had not accounted for projected sea-level rise or increased storm surge intensity.

The issue was clear: the local agency lacked the absorptive and execution capacity required to deliver a resilient outcome.

B. Lack of Data and MRV (Monitoring, Reporting and Verification)

Gaps often exist due to weak systems for collecting, analyzing and reporting climate-relevant data. This makes it difficult to demonstrate the impact of finance, comply with donor transparency requirements or access results-based funding.

Consider the example of a missing baseline: a country implements a large scale programme to distribute solar lanterns (mitigation and energy access). The initiative successfully delivers 50,000 units. However, the government lacks a comprehensive system to track previous usage patterns, baseline data such as the number of kerosene lamps used per household.

Without this verified baseline, the country cannot accurately calculate avoided carbon emissions. As a result, it is unable to access future results-based funding, since it cannot credibly demonstrate the climate impact achieved.

The GCF's Readiness and Preparatory Support Programme serves as an indispensable framework for understanding how international funders empower nations to access and manage the vast resources required for a resilient, low-carbon future.

The Green Climate Fund (GCF) and Readiness Programmes

The Green Climate Fund (GCF), established as the largest dedicated multilateral climate fund under the UNFCCC, serves as a key model in global climate finance architecture. Its mission to drive transformational change and advance the Direct Access Modality requires a strong emphasis on building national capacity. In this regard, the GCF’s Readiness and Preparatory Support Programme provides an essential framework for understanding how international funds enable countries to access and manage the resources needed for a resilient, low carbon future.

The GCF, as the financial mechanism of the UNFCCC, places significant priority on its Readiness and Preparatory Support Programme. This emphasis is driven by two core objectives: maximizing the transformational impact of its investments and ensuring strong country ownership alongside effective direct access.

Justification for the GCF’s Emphasis on Readiness

• Promoting Direct Access

The GCF advances the Direct Access Modality (DAM), which channels funding directly through national and regional entities rather than relying solely on international organizations. Readiness funding is therefore essential for strengthening these Direct Access Entities, enabling developing countries to bypass intermediaries and assume greater control over climate finance and implementation.

Fostering Country Ownership

Readiness support is explicitly designed to be country driven, supporting the NDA/Focal Point to coordinate stakeholders and develop a Country Programme that identifies the highest priority climate investments. This ensures that GCF funding is aligned with national strategies and broader development goals.

It is worth noting that the GCF continues to implement reforms aimed at making its processes more accessible and effective for developing countries. A key direction of these reforms is a stronger focus on local action, with ongoing efforts to engage a broad range of national and subnational actors, including the private sector, academia and civil society organizations to build lasting capacity and ownership.

Transformational Impact

The GCF seeks to support paradigm shifting investments. Readiness assistance helps countries develop the enabling environments required for this shift, including regulatory frameworks, sector strategies and investment plans. This enables a move, away from small, isolated projects toward large scale, systemic and sustainable climate action.

Building a Comprehensive Project Pipeline

The GCF also dedicates readiness funding to the development of a results driven investment pipeline. This includes support for project preparation activities such as pre-feasibility studies, risk assessments, and environmental and social assessments, all of which are essential for unlocking GCF funding.

By investing in core, high-quality institutional capacity that meets the highest common denominator of fiduciary and safeguard standards, developing countries are effectively becoming “funder-neutral ready”, allowing them to switch efficiently between the GCF, the AF and other significant multilateral climate funds.

The Strategic Focus of the GCF Readiness Programme

The GCF Readiness Programme is structured around four key categories:

• Institutional Strengthening
• Strategic Frameworks
• Private Sector Engagement
• Capacity for Compliance
• Institutional Strengthening

Supporting NDAs/Focal Points to effectively carry out their roles, including stakeholder consultations and strategic oversight, while also strengthening potential Direct Access Entities through accreditation support.

• Strategic Frameworks

Assisting countries in developing or enhancing their Country Programmes, ensuring alignment between national priorities and GCF investment areas. This also includes support for the formulation of National Adaptation Plans (NAPs) and other long-term climate strategies.

• Private Sector Engagement

Providing support to create enabling environments, policies and incentives that can mobilize both domestic and international private sector investment in climate-related projects.

• Capacity for Compliance

Building institutional capacity to meet the GCF’s Environmental and Social Safeguards (ESS) and Gender Policy requirements.

In addition, the GCF prioritizes equity in its readiness support by earmarking funding for particularly vulnerable countries, including Least Developed Countries (LDCs), Small Island Developing States (SIDS) and African States. This reflects their heightened vulnerability to climate change and relatively lower existing institutional capacities.

Policy Rationale for Funders

The emphasis on strengthening everyday Readiness needs is reflected in the efforts of the GCF and the Adaptation Fund to enhance complementarity and coherence across the climate finance system.

Avoiding Duplication

By promoting shared standards, these funds help reduce the administrative burden on developing countries, which would otherwise need to design separate readiness systems to meet highly differentiated requirements across multiple funders.

Scaling Up

Adaptation Fund typically supports smaller, highly innovative adaptation projects, often referred to as “starter” projects. When a country’s National Implementing Entity (NIE) has strong foundational readiness, it can use Adaptation Fund support to test and demonstrate proof of concept. The same readiness foundation can then be leveraged to scale successful initiatives through the larger funding windows of the GCF. This sequencing reflects an intentional collaboration strategy between both funds.

Community of Practice

The Community of Practice for Direct Access Entities (CPDAE), supported by both the GCF and AF, serves as a strong example of institutional harmonization. It facilitates South–South peer learning around shared challenges in accreditation, implementation and project development.

Overall, by investing in strong institutional capacity aligned with the highest common fiduciary and safeguard standards, developing countries become more “funder-neutral ready”. This allows them to efficiently navigate and access resources across the GCF, AF and other major multilateral climate funds.

Accessing Readiness

Several tools and frameworks are available for engaging in partnerships for development initiatives:

Readiness Assessment Tools now names what a scorecard measures (fiduciary systems, track record, ESS robustness) and ties it directly back to the GCF's own Readiness Programme, framing it as a proactive planning tool rather than a compliance checkbox.

Stakeholder Mapping now names who gets mapped (ministries, communities, investors, civil society) and what the exercise reveals — where power sits, where trust is fragile, where the network has gaps. That "fragile trust" phrase is a light, deliberate thread forward into "Readiness Implementation Challenges," which then explains why trust matters — connective tissue rather than repetition.

Capacity Building Initiatives now gives two concrete mechanisms (short GCF-compliance workshops vs. longer institutional twinning with an established Accredited Entity) and closes on the actual point: durable in-house capacity, not just satisfying a funder's checklist.

Readiness Implementation Challenges

Despite its importance, Readiness implementation is susceptible to several challenges that can hinder effective engagement in partnerships. Three major challenges include lack of trust which is associated to historical grievances or power imbalance between stakeholders which often create distrust and weaken collaboration. The second challenge is limited resources which is associated with financial constraints that may restrict an organization’s ability to fully participate in partnership processes and implementation activities; and the third is inadequate communication associated with weak communication strategies that often lead to misunderstandings with roles, responsibilities and expectations among partners.

Readiness is a multifaceted concept that is essential for effective engagement in partnerships aimed at development initiatives. Strengthening collaboration toward sustainable development goals requires organizations to focus on key components such as institutional capacity, stakeholder engagement, resource availability, strategic alignment and cultural competence.

It is also important for organizations to continuously assess their readiness using appropriate tools and to proactively address emerging challenges. These combined efforts enhance organization’s ability to partner effectively and achieve desired outcomes.

In the following chapters, we will examine four key dimensions of Readiness: institutional capacity, stakeholder engagement, resource availability, and cultural competence.

The conventional Readiness Deficit model often overlooks the foundational strengths already present in developing nations, which can serve as the bedrock for institutional capacity.

Chapter 5

Institutional Capacity

Framing the Institutional Readiness Challenge

he global climate finance architecture, led by major institutions such as the Green Climate Fund (GCF) and the Adaptation Fund, is increasingly prioritizing Direct Access Modalities to strengthen country ownership and ensure strategic alignment with national priorities. However, this shift is often constrained by a persistent institutional readiness deficit in developing countries.

This deficit reflects the critical gap between the sophisticated fiduciary, environmental and technical standards required by international frameworks and the current capacity of national institutions.

As outlined in the preceding chapter, this challenge manifests across several key areas, including weak fiduciary management systems, limited or absent Environmental and Social Safeguards, fragmented national coordination and an underdeveloped project pipeline. All these directly impede the flow of transformative capital.

While the general analysis frames these institutional gaps as challenges, viewing them through the lens of Appreciative Intelligence encourage a different interpretation; reframing the challenges as strategic opportunities to strengthen resilient, country-driven climate governance systems.

Framing the Readiness Deficit through the Appreciative Intelligence Lens

The traditional view defines the institutional Readiness Deficit in terms of what is missing: weak fiduciary systems, absent safeguards, poor coordination mechanisms and similar gaps. The Appreciative Intelligence lens, however, shifts the question entirely: What is already working and what latent strengths can be leveraged to achieve transformative access to climate finance?

To guide this reframing, three core components of the ApI approach are applied: Appreciation, Reframing and Visioning.

Appreciating: Recognizing Inherent Strengths

The conventional Readiness Deficit model often overlooks foundational strengths already present in developing nations; strengths that can serve as the bedrock for institutional capacity.

• While the conventional view may describe a weak project pipeline as a “handicap”, the Appreciative Intelligence perspective reveals a deeper institutional asset: the existence of National Adaptation Plans (NAPs) and Nationally Determined Contributions (NDCs). These frameworks are not abstract policy documents; they are grounded in decades of local data, lived experience and stakeholder consultation.

Seen through this lens, they represent deep contextual knowledge that is often more locally relevant than externally designed frameworks. What was previously framed as a “gap” becomes a strategic foundation for domestically driven project development.

• While the conventional view defines weak fiduciary systems as product of “substandard accounting and audit controls”, the Appreciative Intelligence approach instead focuses on an institutional strength: a deep commitment to public trust. This perspective strategically leverages the presence of dedicated public servants and a strong internal drive for sovereign financial control (country ownership), ultimately revealing the political will to build fiduciary systems that go beyond minimum compliance and achieve higher standards of accountability.
• While the conventional view attributes poor coordination to ministerial silos that prevent strategic alignment, the Appreciative Intelligence approach takes a different path. It focuses on identifying and repurposing existing inter-ministerial structures, such as development committees and budget processes, to integrate climate priorities, enabling immediate progress without the need to create entirely new institutional systems.
• While the conventional view links limited safeguard expertise to a “lack of trained staff in Environmental and Social Safeguards (ESS)”, the Appreciative Intelligence approach highlights an existing local strength. It identifies and leverages the deep, trusted networks embedded in community-level Grievance Redress Mechanisms (GRMs), providing real-time social feedback and grassroots adaptation insight, resources that international systems often struggle to replicate with the same level of trust and accessibility.

This initial step of leveraging the first component (Appreciation) helps shift the institutional dialogue from “We don’t meet the standards” to “We already have the sovereign strategy and local commitment, now we need the financial mechanisms to match it”.

Reframing: Translating Gaps into Innovative Opportunities

In resourcing the financial mechanism, the next step is to translate existing gaps into opportunities that can attract financing. The Appreciative Intelligence framework is applied here to transform “pain points” into compelling entry points for innovation and capacity enhancement. At this stage, a GCF Readiness intervention moves beyond being merely remedial and becomes strategically transformative.

Pain Point 1: Weak financial systems limit a country’s ability to achieve Direct Access Entity (DAE) accreditation. Opportunity: this very weakness creates the space to purpose-build a GCF-compliant Green Finance Mechanism such as a national climate fund or dedicated financing facility designed from inception for efficiency, transparency and the effective blending of public and private finance.

Pain Point 2: Environmental and Social Safeguards (ESS) policies are often non-existent at the national level. Opportunity: this gap is an opening to build-in the ESS properly from the start, integrating climate, gender and social safeguards directly into the core mandate of a key national institution, such as a national development bank. Done well, this becomes a competitive advantage, attracting ESG-focused private investment well beyond traditional public grant financing.

Pain Point 3: Technical project preparation skills are often in short supply. Opportunity: this shortage opens the pathway for a National Project Incubation Facility, one that systematically draws on local academic and private sector expertise to co-develop projects, ensuring proposals are not only fundable, but transformational, locally grounded and genuinely country-owned.

Pain Point 4: Coordination across institutions is often fragmented. Opportunity: the fragmentation calls for repositioning the National Designated Authority, not as a gatekeeper, but as a strategic convener and broker; the central hub connecting climate priorities from line ministries with investment opportunities from national finance institutions and the private sector.

Visioning: Realizing the Future State of Readiness

Visioning is the stage where the positive core is expanded into a compelling and desirable future that mobilizes institutional energy. In the context of climate finance, this vision moves beyond simply accessing funds to becoming a global leader in climate resilience governance.

From Compliance to Leadership: Instead of treating fiduciary and safeguard standards as procedural hurdles, the vision is of institutions with such strong financial and Environmental and Social Safeguards (ESS) systems that they can seamlessly manage funds from the GCF, the Adaptation Fund, bilateral donors and private impact investors through an integrated and streamlined system.

From Dependence to Innovation: This vision builds on institutional mandate to pilot innovative financing instruments tailored to local realities, such as national green bonds and climate insurance mechanisms. In doing so, countries evolve from being primarily recipients of technical assistance to becoming active contributors to South–South knowledge exchange and innovation.

From Latent to Transformative Outcome: The fully realized Appreciative Intelligence approach leads to a shift where national institutions move beyond addressing readiness deficits and instead emerge as proactive leaders within the global climate finance architecture. Strengthened institutional capacity becomes the foundation for a truly country-led and resilient development pathway.

In this framing, Readiness funding is no longer seen as an end in itself but as seed capital for institutional renewal, innovation and sustained excellence.

Case Study

The Appreciative Journey to Climate Readiness: NIRSAL’s Transformation

The Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL Plc.) is more than a non-banking financial institution in Nigeria. It is an architect of agricultural transformation. Established to fundamentally de-risk the agricultural finance value chain, NIRSAL operates through four strategic pillars that collectively aim to unlock finance, build capacity, develop innovative insurance mechanisms and institutionalize incentives. These pillars are categorized under broad headings: risk-sharing, technical assistance, insurance mechanisms and incentive frameworks.

NIRSAL’s core mandate is clear: to transform Nigerian agriculture by connecting the value chain to commercial bank financing, thereby strengthening food security, creating jobs and supporting a climate-resilient economy.

This mandate positioned NIRSAL on the global stage when it was appointed as the Delivery Partner for the Green Climate Fund under Nigeria’s Readiness and Preparatory Support Programme. The initiative, titled “Strengthening Nigeria’s Capacity to Engage in Climate Action for a Low Emissions and Climate Resilient Development Pathway”, marked a significant step forward in the country’s climate finance engagement.

Even with their official GCF certification in hand, NIRSAL’s leadership made a decision that reflected strong organizational foresight. They recognized that a mandate of this scale, guiding a nation toward a low emission, climate-resilient future, required more than formal capacity building; it required deep, shared mastery within their own team.

Rather than waiting for implementation to begin, they chose to lead from within. They took the proactive step of “readying the ready” by engaging my firm to strengthen their internal capacity before delivering the GCF Readiness Programme for Nigeria.

This is where the real work began. Using the lens of Appreciative Intelligence, the focus was not on fixing gaps but on uncovering and amplifying existing strengths to build a foundation truly prepared for the task ahead.

Phase 1: Discovering the Positive Core

The Consultant’s Approach

Our engagement began with a deliberate application of Appreciative Intelligence; moving beyond a conventional needs assessment toward a strengths-based inquiry. Instead of asking, “What gaps exist within NIRSAL?” we asked, “What is already working exceptionally well within NIRSAL that positions it as a strong leader for this climate finance mandate?”

This shift in perspective revealed NIRSAL’s positive core; its deep technical expertise in risk mitigation, its strong suite of financial instruments, such as the Credit Risk Guarantee, and, most importantly, the passionate commitment of its staff. A clear consensus emerged that NIRSAL’s success was not limited to lending, but extended to building confidence among farmers, financial institutions and now potentially global climate financiers.

The capacity-building programme was structured into three interconnected delivery packages: Climate Change Essentials, Climate Finance Mechanisms and Empowerment for Green Transformation. Each component was carefully designed around these identified strengths. This was not a remedial intervention; it was an intentional expansion and refinement of existing institutional excellence.

The fifty participating staff members were not treated as learners needing correction but as emerging Climate Champions, professionals equipped to integrate new knowledge into their existing roles and evolve into fully capable Climate Action Practitioners.

Phase II: Dreaming and Designing the Future

The Staff Programme

For the core group of 50 staff members, the training was designed to help them envision NIRSAL’s future within the climate space. The methodology was grounded in a transformative mindset, intentionally integrating the Appreciative Intelligence approach into the capacity building process. Participants were guided through a highly interactive experience using the five Ds of Appreciative Intelligence (Definition, Discovery, Dream, Design and Destiny) delivered through a blend of presentations, group discussions and case studies, drawing on relevant examples from developing country contexts.

The workshop placed strong emphasis on the practical application of tools such as materiality assessment and key performance indicator (KPI) development. The objective was not simply to transfer information but to enable deeper understanding, knowledge integration and practical application. This approach was deliberately chosen to reposition existing institutional gaps, not as weaknesses or failures but as strategic opportunities for building resilient, country-driven climate governance.

By shifting attention from problems to strengths and desired outcomes, the programme empowered the participants to think more expansively and lead innovative approaches to climate finance.

Participants began to envision a future where the risk-sharing mechanism becomes the backbone of large scale, climate-smart investments, while the Technical Assistance pillar strengthens farmers’ capacity in advanced climate resilience practices.

The energy in the room was unmistakable. Participants who were already experienced in agricultural finance began to see the GCF mandate not as an additional burden but as a force multiplier for their impact. They recognized a powerful alignment: de-risking agriculture is, in essence, a form of climate adaptation.

Phase III: Destining the Organizational Commitment

The Executive Session

The final and most decisive step was the executive level engagement with top management. This was the “Destiny” phase, focused on solidifying institutional commitment and embedding the climate agenda into the organization’s core identity.

This Executive Summit applied Appreciative Intelligence to align strategic vision with operational strengths. The central guiding question was: How can NIRSAL’s leadership position its GCF Delivery Partner status as a powerful driver of its four strategic pillars?

The leadership team quickly embraced the concept of “Climate as the New Value Chain”. They recognized that the GCF mandate was not merely a project window but a gateway to a new stream of patient, concessional capital capable of significantly accelerating their core mission of de-risking agricultural finance.

From this reframed perspective, several practical commitments emerged:

Integrating Climate Screening: All new financing proposals would now be assessed for climate vulnerability using the existing rating mechanisms.

Green Product Development: Accelerated design and rollout of specialized Green Guarantee products.

Leadership Sponsorship: Executive management committed to active sponsorship, ensuring that knowledge of climate change and climate finance was cascaded across all units, thereby embedding institutional readiness at every level.

Through these actions, NIRSAL began its transition from a technically capable institution to a fully climate-responsive organization, where readiness was no-longer a program requirement but an internal operating principle.

By embracing Appreciative Intelligence, NIRSAL did not merely undergo a training programme; it engaged in a process of organizational self-discovery. It moved forward with confidence, not from a place of inadequacy but from a clear recognition of the excellence that already existed within the institution, positioning it strongly to enhance Nigeria’s capacity for climate action. The eight-week capacity building journey stood as a testament to the power of focusing on what is right, what is working and what is possible.

The persistent institutional deficit in accessing and managing international climate finance is not merely a technical issue; it remains one of the most significant bottlenecks undermining country-led climate action. While conventional approaches emphasize correcting deficiencies, such as strengthening audit systems or developing environmental and social safeguard policies, the path to sustained readiness lies in adopting an Appreciative Intelligence mindset.

As demonstrated in the NIRSAL case study, Readiness Programmes must go beyond remedial training and become processes of organizational self-discovery, leveraging existing national strengths, such as deep contextual knowledge and a commitment to public trust, to drive meaningful capacity expansion.

By reframing gaps as high-potential opportunities, from establishing dedicated Green Finance Mechanisms to positioning the National Designated Authority as a strategic broker, developing countries can transition from being dependent recipients of technical assistance to proactive leaders in climate resilience governance.

In this light, strategic investment in Readiness becomes more than preparation; it becomes seed capital for institutional renewal and sustained excellence, ensuring that national entities are not only compliant but fully equipped to lead their own resilient development pathways.

The Appreciative Intelligence approach provides a critical bridge across complex climate finance gaps. By recognizing and validating the existing financial literacy and accountability embedded within local social structures, ApI positions communities for more effective and confident participation in global funding mechanisms.

Chapter 6

Stakeholder Engagement

An Appreciative Intelligence Approach: From Deficit Management to Asset Mobilization

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takeholder engagement is widely recognized as essential for achieving sustainable development outcomes, particularly within the complex and resource-constrained contexts of developing countries.

For decades, the dominant approach in development practice has relied on a deficit-based analysis, carefully identifying the “barriers, gaps, risks and vulnerabilities” that limit community participation.

While this approach is useful for diagnosing problems, it often unintentionally frames local stakeholders, community members, leaders and institutions, as passive recipients or at times, as part of the problem itself (for example, due to perceived low capacity or limited availability). As a result, strategies tend to focus on fixing what is lacking rather than building on what already exists.

In this chapter, we explore a fundamental methodological shift through the lens of Appreciative Intelligence. By moving away from traditional problem-solving toward success amplification, this approach reframes stakeholder “availability” not as a limitation but as a reservoir of assets waiting to be mobilized.

We will explore processes that demonstrate how an Appreciative Intelligence framework systematically identifies existing local capacities, ranging from intricate community communication networks to deeply rooted trust systems. It further shows how these assets can be intentionally integrated into the core design of development interventions.

Through this lens, stakeholder engagement shifts from a challenge to be managed into an opportunity for co-creation; one that enhances accessibility, strengthens ownership and improves the long-term sustainability and equity of development outcomes.

Stakeholder engagement is widely acknowledged as a critical component of development projects, particularly in developing country contexts. However, applying the ApI approach elevates its effectiveness even further. Rather than viewing diverse stakeholder groups as problems to be managed, Appreciative Intelligence recognizes them as assets, rich with existing wisdom, resources and capacity for meaningful participation.

The focus, therefore, shifts from overcoming limitations to identifying, amplifying and building upon successful participation models that already exist. This shift not only deepens engagement but also ensures more sustainable and impactful outcomes.

Traditional Barriers

Re-imagining Potential from Barriers to Assets

By applying the principles of Appreciative Intelligence, the focus shifts from searching for what is missing to amplifying the positive that already exists. This change in perspective allows traditional barriers to be reframed as powerful assets for engagement.

When we view the development landscape through this strength-based lens, five key pillars of untapped potential begin to emerge:

Geographical and Logistical Ingenuity.

Socio-economic Prioritization and Time Management.

Cultural Cohesion and Leadership Structures.

Existing Knowledge and Learning Capacity.

Political Will and Institutional Foundations.

These are not merely categories; they represent the Positive Core of a more effective and grounded climate finance strategy. Each pillar offers a distinct leverage point for driving engagement, strengthening resilience and shaping more sustainable outcomes.

Let us now explore how these assets can be intentionally harnessed to unlock new pathways for impact.

1. Geographical and Logistical Ingenuity

Rather than focusing on geographical barriers, this approach recognizes and values the local solutions and resilience already used to connect people and information.

Asset 1a: Comprehensive Local Networks

This involves identifying and leveraging well-established local transportation systems and community communication pathways that link even the most remote areas. The strength lies in the ingenuity of residents in moving goods and sharing information; systems that can be adapted for effective stakeholder engagement.

Asset 1b: Success in Non-Digital Communication

This highlights the reliability and reach of traditional communication methods, such as the town-crier approach and community gathering points. These channels remain highly effective, accessible and inclusive, especially in contexts where digital connectivity is limited.

2. Socio–economic Prioritization and Time Management

Instead of viewing socioeconomic constraints and time limitations as deficits, this perspective appreciates the efficiency, and resourcefulness stakeholders demonstrate in managing their realities.

Asset 2a: High-impact Motivation

Participation is often shaped by the need to prioritize daily survival. The strength here lies in a strong, and practical motivation. Stakeholders engage readily when initiatives present clear, immediate and tangible value to their livelihoods.

Asset 2b: Resourceful Time Utilization

This involves recognizing and working within existing social structures, such as market days, religious gatherings, and communal work periods, where people naturally convene. Engagement becomes more effective when it is flexible and aligned with these established rhythms.

3. Cultural Cohesion and Leadership Structures

Rather than focusing on how cultural dynamics may exclude certain groups, this perspective recognizes and values the existing governance systems and trust networks within communities.

Asset 3a: Established Trust and Authority

This involves acknowledging the strength and legitimacy of traditional leadership structures and local networks that already command respect. These systems can serve as effective channels for information dissemination and community mobilization.

Asset 3b: Cultural Norms of Consensus

This highlights cultural values that prioritize collective decision-making and community well-being. When engaged with respect and sensitivity, these norms can lead to outcomes that are not only sustainable but also deeply owned by the community.

4. Existing Knowledge and Learning Capacity

Instead of emphasizing gaps in formal education or awareness, this approach values indigenous knowledge systems and the demonstrated capacity for continuous learning.

Asset 4a: Experience-based Wisdom

This recognizes the depth of practical knowledge within local communities regarding their environment, challenges and adaptive strategies. Such lived experience provides critical insights for designing relevant and effective development interventions.

Asset 4b: Community Learning Models

This focuses on existing informal learning structures, such as farmer cooperatives and women’s savings groups, that already facilitate knowledge sharing and collective growth. These platforms demonstrate a strong capacity for learning, adaptation and peer-to-peer support.

5. Political Will and Institutional Foundations

Rather than focusing solely on challenges within the political environment, this perspective recognizes and builds on existing institutional support and local authority structures.

Asset 5a: Committed Local Champions

This involves identifying and collaborating with supportive local authorities and civil society organizations that are already invested in community development. These actors often serve as catalysts for mobilization and sustained engagement.

Asset 5b: Functional Governance Mechanism

This highlights existing government structures, even if still developing, that provide the institutional framework and legitimacy required for effective project implementation and scale-up.

From Theory to Transformation

A Glimpse into Real-World Resilience

While these five pillars offer a strong framework for rethinking climate finance, their true value becomes clear when applied in real-life contexts. Understanding the “positive core” of a system is important, but seeing how that core can be activated at the community level brings the concept to life.

To further illustrate how Appreciative Intelligence moves from theory to a catalyst for change, we now turn to a compelling case study from Niger State in Nigeria.

This case explores the experience of a group of rural women farmers who, despite facing significant climate-related challenges, drew on their internal strengths, their cultural cohesion, logistical ingenuity and existing knowledge to redefine their future.

By examining their journey through the lens of Appreciative Intelligence, we see how a simple shift in perspective can unlock sustainable pathways and empower those on the front lines of climate change to lead their own transformation.

This case study highlights the intervention of the Agro-Climatic Resilience in Semi-Arid Landscapes (ACReSAL) Project in Niger State, Nigeria, with a focus on empowering vulnerable women farmers through the provision of targeted agricultural inputs. The intervention was designed for women who, despite years of farming experience, continued to face significant economic hardship and persistently low yields.

The Pre-Intervention Context: Chronic Vulnerability

For over 15 years, 100 women across 25 communities in nine Local Government Areas (LGAs) of Niger State, Nigeria had been engaged in subsistence farming. They cultivated crops such as groundnut, cowpea, soybeans, rice, melon and maize on small plots of land, typically less than half a hectare each.

Despite their resilience and experience, they faced persistent challenges that kept them economically vulnerable. These included limited access to funds for purchasing improved seeds, fertilizers, pesticides and farming tools, as well as an inability to hire additional labor. Many lacked formal land titles, further restricting their capacity to expand or secure financing.

Low yields remained a consistent barrier, preventing any meaningful increase in production or income. As a result, these women lived on the edge of subsistence, barely able to feed their families and were highly exposed to climate variability, including droughts and floods.

The beneficiaries were carefully selected from 25 communities across multiple local government areas, ensuring representation of those most affected by these intersecting challenges.

The ACReSAL Intervention

In July 2023, the Niger State Project Management Unit (SPMU) of the World Bank-supported ACReSAL Project (Government of Nigeria) initiated an intervention across these communities.

The Niger SPMU worked in collaboration with the Niger State Agricultural and Mechanization Development Agency (NAMDA) to support 100 identified poor and vulnerable women farmers. Each beneficiary received agricultural inputs designed to support one full cropping season, including improved seeds, fertilizers and pesticides.

In a significant effort to boost local agricultural productivity, ACReSAL delivered a substantial package of essential farming inputs to the women farmers. The intervention prioritized crop diversity and yield improvement by providing a range of improved seeds, including: 2,000 kg of rice; 4,550 kg of soybean; and 200 kg of maize

To further enhance productivity and soil health, the program also supplied a comprehensive nutrient management package, which included: 140 bags (50 kg each) of NPK fertilizer; 70 bags of urea fertilizer; and 550 bags of organic fertilizer.

In addition, 400 litres of herbicides were provided to support effective weed control and crop protection, ensuring healthier crop establishment and improved yields.

The Impact and Success Stories

Despite receiving no formal training, the women drew on their extensive farming experience and recorded a bumper harvest in December 2023. The average yield increased significantly, with most participants harvesting about ten 65 kilo bags per hectare, an impressive rise from their previous output of less than two bags.

Below are selected success stories that reflect the depth of this transformation:

Account 1: Jummai Yabagi (Kodo Community)

The impact of the ACReSAL intervention is perhaps most powerfully captured in the story of Jummai, whose harvest marked a profound turning point for her family.

Working her one-hectare farmland, Jummai experienced a remarkable increase in productivity. She harvested ten 65 kilo bags of soybean, a dramatic improvement from the two bags she typically produced in previous seasons.

This bumper harvest translated into an income of ₦450,000 (approximately $275). For Jummai, this was far more than financial gain, it became a critical lifeline for her household.

The social impact was deeply personal. As a mother supporting her widowed daughter, Jummai had previously endured the painful loss of a grandchild to malnutrition. With her new earnings, she was able to provide adequate care and nourishment for her two surviving triplets, supporting their recovery and well-being. Beyond meeting immediate needs, she also secured their education by returning them to school, transforming a single farming season into a season of restoration, dignity and hope.

Account 2: Fatima Abubakar

Fatima’s story is a powerful testament to how targeted agricultural support can reshape the trajectory of an entire family.

A 52-year old mother of six, Fatima spent over 30 years engaged in rice farming. Yet, despite her dedication and effort, her work for decades barely provided a reliable safety net for her household. One of the most painful moments in her life occurred seven years before, when she lost her pregnant younger sister due to the family’s inability to afford hospital delivery costs; a tragedy that had continued to shape her determination to build a more secure future.

Before the intervention, Fatima’s one-hectare rice farm produced an average of ten 50kg bags of paddy annually. However, following the support she received through the ACReSAL intervention, her productivity experienced a remarkable transformation.

In January 2024, she harvested 30 bags of rice. In a striking confirmation of this new level of productivity, she replicated the same output in August 2024, bringing her total annual yield to 60 bags. This represented a six-fold increase compared to her previous years of production.

The financial outcomes were equally transformative. By selling 30 bags at ₦60,000 each, Fatima earned a total of ₦1.8 million (approximately $1,100). Rather than merely addressing immediate household needs, she made intentional decisions to invest in the long-term stability of her family and her livelihood.

She took on the responsibility of supporting her adopted niece’s education, while also funding her eldest son’s university studies and enrolling her younger son in senior secondary school in Minna.

To further diversify her income sources, Fatima purchased a second-hand rice milling machine and acquired five sheep for rearing. In addition, she contributed part of her earnings toward her husband’s purchase of a used motorcycle, improving mobility and easing access to markets and services for the household.

Broader Benefits and Indirect Impact of the above accounts

The experiences of Jummai and Fatima were not isolated cases; rather, they reflected a wider wave of transformation among the 100 women farmers. Collectively, their success redefined living standards across their communities, creating a ripple effect of improved welfare, confidence and empowerment.

A New Standard of Living

For these women, the most immediate impact was a significant improvement in family well-being. With surplus harvests, many moved beyond subsistence living and gained the financial capacity to provide better nutrition for their families and enroll their children in school, often for the first time in years.

This newfound economic stability also enabled them to invest in personal assets and expand their cultivated land. In doing so, they were not only improving their current livelihoods but also laying a stronger foundation for sustained agricultural growth in future seasons.

Social and Community Impact

As their granaries filled, so did their standing within the community. Improved harvests significantly elevated their social status, transforming them from struggling laborers into respected providers and emerging entrepreneurs.

This success extended far beyond the 100 women directly involved. With an average household size of six members, the intervention indirectly benefited an estimated 500 additional people. Through increased income, the women were able to purchase a wider variety of food crops and vegetables, improving regional food security and ensuring more balanced diets for their families.

Power in Numbers: Collective Investments

Perhaps one of the most inspiring outcomes of this transformation was the rise of collective investment initiatives, where women pooled resources to build shared prosperity.

In Kakakpangi Community, recognizing the long-term value of land and livestock, the women jointly acquired ten hectares of farmland. They also invested in livestock, cows, sheep and goats, for fattening, creating a diversified and sustainable communal income stream.

In Edozhigi Community, their focus shifted toward value addition and processing. The women collectively purchased industrial milling and grinding machines for rice, cereals and cassava. Beyond processing, they went further to establish a provision store, positioning themselves as active and influential players in the local economy.

Building on Trusted Local Financial Structures

These women’s savings groups are far more than informal social circles. They function as established systems with built-in capacity for collective financial management, accountability and careful record-keeping. This existing structure represents a critical asset for managing small scale climate finance.

The approach is straightforward: rather than creating new and complex systems from the ground up, these groups can be leveraged as trusted “delivery vehicles” for micro grants and soft loans. Such funding can directly support local adaptation needs, including drought-resistant seeds, small scale irrigation systems and solar energy kits.

By channeling resources through these pre-existing networks, administrative costs are significantly reduced while delivery becomes faster and more efficient. At the same time, accountability is strengthened through community oversight, peer responsibility and shared ownership, factors that are often absent in externally imposed financial systems.

Incentivizing Local Action

Another key strategy is the use of incentives to align local action with global climate goals. This approach validates community participation as a meaningful and valuable contribution to climate action.

Instead of framing stipends or meals as a “handout”, they are repositioned as compensation for the time, effort and local knowledge contributed to climate-relevant activities. These activities, depending on the structure, may include participatory mapping of climate hazards, engagement in resilience planning or participation in training sessions on climate-smart and resilient farming practices.

This localized “payment-for-service” approach fosters a stronger sense of ownership, fairness, dignity and key ingredients for sustained commitment to climate action. Within the context of the Paris Agreement, this “valued exchange” model reflects a broader principle of reciprocity: developed countries support developing communities, while those communities contribute measurable action toward adaptation and mitigation goals.

The Appreciative Elements of this Case Study

The ACReSAL success story in Niger State reshapes the conventional narrative. It was not primarily about mitigating vulnerability but about recognizing and harnessing inherent strength.

Appreciative Intelligence demonstrates that success was not externally imposed, it was already present within the women’s existing capacity, lived experience, wisdom and resilience. What made the difference was not creation but recognition and amplification of what already worked.

Before the intervention, the dominant narrative was one of deficit: a lack of funds, a lack of land titles and a lack of institutional support. However, through the lens of Appreciative Intelligence, these conditions are reframed by first recognizing what the women already possessed.

One of the most significant strengths was their deep experiential wisdom. Over a period of 15 years, these women consistently cultivated crops such as groundnut, cowpea, soybean, rice, melon and maize. Through years of practice under severe resource constraints and without formal training, they developed invaluable, practical agricultural knowledge that enabled them to sustain production even in difficult conditions.

This chapter established a critical point: stakeholder engagement in development contexts improves significantly when there is a shift in focus. The approach must move from managing deficits to strategically mobilizing assets. This process is most effective when guided by Appreciative Intelligence. It requires a deliberate reframing of traditional barriers. For example, geographical distance, cultural dynamics and time constraints are better understood as assets in context, expressed through local ingenuity, adaptive time management, and established trust systems. When development actors adopt this perspective, they achieve more than short term compliance; they foster sustained, self-directed participation.

Finally, the practice of development must move beyond the persistent focus on “what is missing”. The Appreciative Intelligence approach introduces a new operational philosophy: that the most effective solutions are often already embedded within a community’s existing social systems and everyday successes.

By intentionally discovering, affirming, and partnering with these internal assets and by validating stakeholder contributions through a “valued exchange” approach, development organizations can transform engagement from a logistical challenge into a powerful engine for equitable, resilient and financially sustainable local change.

This paradigm shift offers a clear pathway from short-term project delivery to long-term collaborative governance, where communities are not just participants but co-architects of their own development outcomes.

Fund applications are often overly bureaucratic, lengthy and demanding. National institutions lack staff with deep knowledge of donor fund rules, proposal writing, fiduciary standards and environmental/social safeguards leading to delays or outright rejection of project applications.

Chapter 7

Addressing Resource Constraints

Addressing Resource Constraint An Appreciative Intelligence Approach: From Funding Gaps to Fiscal Resilience

esource constraints represent a critical readiness gap that significantly hinders the ability of developing nations to access, absorb and effectively utilize international climate finance.

This deficit extends beyond financial capital alone to include technical, human and institutional capacity. The combined effect of these limitations is a widening climate finance gap practically preventing funds from reaching the countries and sectors most in need, particularly for essential adaptation interventions.

In this chapter, we will examine three major dimensions of resource constraints:

Institutional and technical capacity constraints

Project preparation and pipeline development

Fiscal and debt constraints

Addressing Institutional and Technical Capacity Constraints

Institutional and technical capacity building programs are designed to strengthen in-country ability to manage and disburse climate finance effectively. The Green Climate Fund (GCF) Readiness and Preparatory Support Programme, alongside Climate Finance Access Hubs, provide useful models for addressing resource constraints within this category.

As the most significant mechanisms dedicated to closing capacity gaps, the GCF Readiness and Preparatory Support Programme provides grants to national institutions to build the systems and competencies required for Direct Access accreditation and effective project development. These funds are typically used to engage technical experts, train national staff, strengthen financial management and governance systems, and develop country programs that prioritize climate investments.

For example, a country may use Readiness funding to train personnel within its Ministry of Finance on fiduciary standards or to support a national development bank in establishing the Environmental and Social Safeguards (ESS) framework required for accreditation as a National Implementing Entity.

Climate Finance Access Hubs, such as the Commonwealth Climate Finance Access Hub and similar regional platforms, take a more embedded approach. They deploy Climate Finance Advisors directly into government ministries, particularly in Small Island Developing States (SIDS) and Least Developed Countries (LDCs). These advisors provide hands-on, day-to-day technical support, assisting with proposal development, navigating complex funding requirements and building the capacity of local counterparts. In doing so, they address immediate human resource gaps while strengthening long-term institutional capability.

Project Preparation and Pipeline Development

Addressing the technical deficit in developing bankable projects is essential for moving initiatives from concept to implementation. In this section, we will explore two key mechanisms: Project Preparation Facilities (PPFs) and Blended Finance Structuring (BFS).

Project Preparation Facilities are dedicated funding widows offered by multilateral development banks (MDBs) and institutions such as the Green Climate Fund. They are designed to cover the upfront, high-risk costs associated with developing standard project proposals, including feasibility studies, detailed engineering designs, and Environmental Impact Assessments (EIAs).

For instance, the GCF’s Project Preparation Facility provides targeted funding to support projects from the conceptual stage to investment-ready status. This directly reduces both the financial burden and technical complexity faced by developing countries, enabling them to build credible and fundable project pipelines.

Blended Finance Structuring, on the other hand, involves the strategic use of public finance by multilateral development banks and donor governments to mobilize private sector investment. Through instruments such as grants and concessional loans, public capital is used to de-risk projects and attract larger pools of private funding.

This approach typically incorporates innovative financial tools such as guarantees, first-loss mechanisms and currency hedging instruments. These tools reduce perceived investment risks in developing countries, lower the cost of capital and enhance the financial viability of projects in areas such as clean energy and climate-resilient infrastructure.

Addressing Fiscal and Debt Constraints

Recent innovations in climate finance are increasingly focusing on unlocking national resources by linking financing mechanisms to debt management strategies.

One of the most prominent approaches is the use of debt-for-climate swaps. These mechanisms address the dual challenge of high debt burdens and limited access to climate finance. In this model, a portion of a country’s external debt is restructured or forgiven in exchange for a commitment by the debtor country to invest the equivalent savings (in local currency) into domestic climate initiatives, such as marine conservation, ecosystem restoration or renewable energy programs.

Recent examples in countries like Seychelles, Belize and Barbados illustrate how this approach can effectively free up constrained fiscal space while advancing national climate priorities.

These comprehensive readiness efforts are essential for transforming resource-constrained developing countries from passive recipients of aid into active, direct implementers of their climate strategies.

Addressing the Resource Constraints from Appreciative Intelligence Perspectives

We will now transition into a series of “milestones”, a conceptual journey that shifts the narrative from focusing on deficits (such as lack of funds, limited human capacity and weak institutions) to recognizing strengths, successes and high impact experiences that enable innovative solutions to resource constraints.

Milestone 1: Definition (Affirmative Topic Choice)

The first step is to deliberately shift the narrative from “problem” to “possibility”. This involves moving from a traditional deficit-based framing to an Appreciative Intelligence perspective grounded in affirmative inquiry.

Rather than emphasizing a “lack of technical staff and weak institutional capacity”, the focus shifts to magnifying and leveraging existing national expertise and institutional partnerships for accelerated climate finance readiness.

Similarly, instead of concentrating on overcoming debt burdens and limited fiscal space for co-financing, the emphasis transitions to maximizing the strategic use of domestic fiscal policies and innovative financial instruments to de-risk investments and attract private capital.

At this stage, the core objective is to reframe constraints as entry points for leveraging local expertise, institutional strengths and financial innovation.

Milestone 2: Discovery (The Best of What Is)

This phase focuses on identifying peak experiences and core

strengths that have enabled success despite existing constraints.

By exploring existing strengths high-performing sectors or institutions are identified. For example, a national entity, such as a development bank, ministry or agency that has successfully secured and managed a pilot climate project or a complex international grant (even outside the climate sector). The key question becomes: What systems, people and processes made that success possible?

Identified unique resources helps to uncover underutilized national assets. For instance, local universities or policy think-tanks may already produce high quality data, research or policy frameworks that can be formalized into technical support units for climate finance readiness.

Partner successes can be mined by identifying effective collaboration models. For example, cases where private sector actors have successfully partnered with the government through public-private partnerships (PPPs), particularly those incorporating environmental safeguards. Such examples demonstrate existing trust, coordination capacity and the potential for blended finance approaches.

Milestone 3: Dream (The Future That Might Be)

Building on the strengths identified in the Discovery phase, this stage involves articulating a bold and compelling vision of a future unconstrained by current limitations. The aim is to develop a clear and inspiring picture of what climate finance readiness could fully become.

For instance, one might envision a future where national implementing entities emerge as regional benchmarks for efficiency and excellence in project management, with the capacity to directly access major climate funds. In such a scenario, a comprehensive pipeline of bankable projects is most likely to consistently attract global private investors, driven by a stable, transparent and efficient regulatory environment.

In this phase, constraints are intentionally reversed and reimagined as solutions. For example, the current limitation of an inadequate project pipeline is transformed into a vision of a fully funded, continuously replenished by National Project Preparation Facility, staffed by local experts and capable of delivering a steady flow of investment-ready proposals.

Milestone 4: Design (What Should Be)

This phase translates the envisioned future, and discovered strengths into concrete strategies, systems and institutional frameworks. It focuses on building practical models that operationalize the desired future state. Now we will explore key dimensions of this design process:

Dimension 1- Strengthening National Implementing Entities (Institutional Design): Establish a National Climate Finance Coordination Hub, building on the most effective institutions identified during the Discovery phase. This hub would aim at centralizing technical expertise, standardize fiduciary processes and function as a shared service platform for ministries and agencies seeking access to climate finance.

Dimension 2 - Leveraging Data (Technical Design): Develop a formal partnership framework between government institutions and local universities. This collaboration would transform existing research and data into standardized climate-risk models required for international funding applications, such as those aligned with Green Climate Fund investment criteria. In doing so, local expertise is institutionalized and critical data gaps are systematically addressed.

Develop a strategic proposition to establish a Sovereign Green Fund, capitalized through a small but reliable portion of domestic revenue. This fund would be used to issue national guarantees and de-risk the local-currency component of large-scale climate infrastructure projects. In doing so, it would leverage limited public resources to crowd in significantly larger volumes of private investment.

Milestone 5: Destiny (Creating the Future)

This phase focuses on implementation, translating design into action. It emphasizes building momentum through “small wins” that validate the new model and create confidence among stakeholders. We will explore three key dimensions of this strategy:

Dimension 1 – Pilot Program: Launch an immediate pilot initiative through the proposed Climate Finance Coordination Hub. This pilot would aim to secure Readiness Support for at least two national institutions, deliberately replicating the success factors identified during the Discovery phase. The goal is to demonstrate early results, build institutional confidence and establish a scalable model for broader implementation.

Dimension 2 – Policy Change: Enact a formal University Partnership Mandate to institutionalize collaboration between government and academic institutions. This policy would ensure that locally generated scientific data and research are systematically integrated into climate planning processes, thereby strengthening technical credibility and demonstrating clear national ownership to international partners.

Dimension 3 – Scaling Success: Commit to financing the first Sovereign Green Guarantee for a small scale, high impact renewable energy project. This pilot would operate under the newly established fiduciary standards, serving as proof of concept for the model’s scalability, financial viability and ability to attract broader investment.

Case Studies

Using the Appreciative Intelligence, we examine two compelling case studies from Seychelles and Mongolia. These examples highlight how countries have leveraged innovative financial structures, strengthened local expertise through accreditation, and mobilized underutilized domestic resources through targeted fiscal reforms such as taxes and fees.

We will explore how these nations moved beyond simply identifying challenges to practical solutions by engaging Appreciative Intelligence. As established earlier in this chapter, this approach shifts the focus from weaknesses to the deliberate amplification of existing national strengths, successes and core assets.

Case Study 1: Seychelles – Transforming Debt into Fiscal Space

The case of Seychelles stands as a landmark example at the intersection of economics and environmental stewardship. It represents the world’s first “debt-for-nature” swap specifically designed for ocean conservation; effectively converting a heavy national debt burden into fiscal space by leveraging the capacity within a government’s budget to invest in essential services and climate resilience.

The Background: A Nation at Risk

By 2008, Seychelles was confronting a dual crisis: Economically, the country was burdened by a debt level exceeding 150% of its GDP, driven largely by global financial shocks that severely impacted its key sectors, particularly tourism and tuna fisheries; Environmentally, as a low-lying archipelago (a chain of islands clustered within a body of water), the nation remains on the front lines of climate change. Rising sea levels and widespread coral bleaching posed that continued significant threats to its ecosystems, economy and long-term survival.

The Strategy: Transforming Debt into Fiscal Space

In 2015, the government of Seychelles, in partnership with The Nature Conservancy (TNC) and the Paris Club, executed an innovative financial strategy designed to address both economic and environmental challenges simultaneously.

Below are the key steps in this transformation:

Step 1: Debt Buy-back Mechanism

A newly established independent trust, the Seychelles Conservation and Climate Adaptation Trust (SeyCCAT), was created to facilitate the transaction. It was capitalized through a combination of $5 million in grants (including contributions from philanthropies such as the Leonardo DiCaprio Foundation) and $15.2 million in concessional loans.

Step 2: Debt Discount Acquisition

SeyCCAT used this capital to repurchase $21.6 million of Seychelles’ sovereign debt from external creditors at a discounted rate (approximately 93.5 cents on the dollar).

Step 3: Debt Restructuring Shift

Following the buy-back, the Seychelles government’s obligation was transferred from external creditors to SeyCCAT, effectively localizing the debt arrangement under more flexible and strategic terms.

Step4: Creation of Fiscal Space

The restructured debt significantly improved repayment conditions:

Lower Interest Rates: Reduced rates generated substantial savings for the government.

Extended Repayment Periods: Timelines were lengthened, to as much as 20 years, easing short term fiscal pressure.

Local Currency Flexibility: A portion of repayments could now be made in Seychellois Rupees, reducing strain on foreign exchange reserves.

The Result

A Win–Win for People and Planet

The fiscal space created through this innovative debt restructuring did not remain idle; it was strategically redirected toward strengthening the nation’s emerging Blue Economy.

In exchange for debt relief, the Seychelles committed to safeguarding approximately 30% of its Exclusive Economic Zone (EEZ), an ocean territory of about 400,000 square kilometers. This marked a significant expansion of marine conservation efforts and long-term ecosystem protection.

Local Grants and Community Impact

Through the savings generated by the restructuring, the Seychelles Conservation and Climate Adaptation Trust has disbursed more than $5.3 million in “Blue Grants”. These funds were used to support locally driven initiatives such as sustainable fisheries, mangrove restoration and climate adaptation research, directly strengthening community resilience and ecological stewardship.

Economic Stability and Resilience

By reducing the cost and burden of sovereign debt, the government was able to redirect resources toward social services and infrastructure development. This improved fiscal stability has strengthened national resilience against future economic and climate-related shocks.

This model has since become a blueprint for other nations, including Belize and Barbados, demonstrating that a country’s natural assets can be strategically leveraged to secure both financial stability and environmental sustainability.

Case Study 2: Mongolia - Mobilizing Domestic Funds for Biodiversity and Climate

While Seychelles focused on transforming international debt, Mongolia addressed a different but equally critical challenge: ensuring that wealth generated from its vast natural resources is reinvested into protecting those very ecosystems.

Mongolia’s experience offers a strong example of domestic resource mobilization in practice. For many years, the country maintained relatively strong environmental legislation on paper. However, the financial resources earmarked for “green” priorities were frequently diverted to other pressing government expenditures. Through the Biodiversity Finance Initiative, Mongolia undertook a systematic reform of its internal public finance systems to establish a more sustainable and self-reinforcing mechanism for conservation funding.

The Challenge: The “Paper Law” Gap

Mongolia had long enacted a Law on Natural Resource Use Fees, which mandates that a portion of revenues generated from the use of water, timber, plants and wildlife be reinvested into environmental protection and conservation efforts.

The Core Problem

Despite this legal framework, implementation was weak due to widespread fiscal diversion. Prior to reform, only about 15%–20% of these earmarked revenues were actually allocated to environmental purposes. The remainder was absorbed into general local budgets and used to cover unrelated administrative and operational expenses.

Economic Pressure: This challenge was intensified by Mongolia’s dual economic structure: a rapidly expanding mining sector alongside a large traditional herding economy, with over 60 million livestock. Together, these systems placed significant and sustained pressure on the country’s steppe ecosystems, water resources and biodiversity.

The Strategy: Reclaiming the Revenue

Beginning in 2015, the government of Mongolia, with support from the United Nations Development Programme, implemented a multi-pronged reform strategy aimed at ensuring that “environmental revenues remain within the environment”.

The strategy unfolded through the following key steps:

Step 1 - Legislative “Teeth”

The government introduced critical amendments to the Law on Natural Resource Use Fees. Rather than serving as a broad guideline, the revised law established mandatory minimum expenditure thresholds for local governments. For instance, at least 35% of plant use fees and 50% of water use fees were required to be allocated directly to environmental restoration and conservation activities.

Step 2 - The Online Tracking Revolution

To address the historical challenge of revenue diversion into general budgets, Mongolia introduced a transparent digital financial tracking system. This platform enabled both central authorities and the public to monitor, in real time, the amount of revenue collected by each province from natural resource use and more importantly, how much of those funds were reinvested into environmental protection and land restoration.

Step 3 - Diversifying Domestic Income Streams

Beyond regulatory reform, Mongolia also pioneered complementary domestic financing mechanisms, including:

Mongolian Conservation Trust Fund (MCTF): A national, independent financing facility designed to pool resources from government allocations, private sector contributions and international donors. Its purpose is to provide long term, predictable funding for protected areas and biodiversity conservation.

Pasture Use Fees: In a bold policy innovation within a nomadic pastoral context, pilot initiatives were introduced to link livestock numbers to the ecological carrying capacity of grazing land. This system uses economic incentives to discourage overgrazing while promoting sustainable land use practices.

The Result: A Three-Fold Increase in Funding

The impact of these seemingly technical administrative and legal reforms has been significant and far-reaching.

Budget Growth

Between 2017 and 2024, domestic funding allocated to environmental protection in Mongolia tripled, reflecting a major shift in fiscal prioritization toward sustainability.

Real-World Restoration

These “reclaimed” revenues have translated into tangible ecological outcomes. Funds have supported the protection of natural springs, critical for both herders and wildlife, large scale reforestation efforts in the northern taiga and conservation initiatives for endangered species such as the Przewalski’s horse.

Empowered Local Governance

Local environmental officers, who previously operated with little or no dedicated budget, now benefit from predictable and sustained financing. This has strengthened their capacity to address desertification, manage protected areas and implement local conservation strategies more effectively.

Exploring the Appreciative Intelligence Elements in the Intervention

This case reframes the financial resource constraint, not as a lack of domestic funding, but as a missed opportunity in resource optimization and fiscal alignment. Instead of viewing the issue as a “funding gap”, Mongolia shifted its focus toward maximizing resource taxation efficiency and reinvestment discipline.

The analysis of both case studies confirms that resource constraints represent a pervasive and systemic barrier within the climate finance readiness landscape of developing countries. This leads to a key conclusion: the challenge is not simply about increasing the overall volume of global climate finance but about structurally enabling countries to access, absorb and effectively manage available resources.

Achieving this requires addressing the interconnected barriers of high sovereign debt burdens, limited technical expertise and weak or fragmented institutional architectures.

However, the most significant insight emerging from these case studies lies in the application of the Appreciative Intelligence framework. The case studies demonstrate that sustainable solutions are not achieved by passively waiting for external assistance to fill existing gaps. Rather, they emerge from an intentional internal shift in mindset, one that reframes constraints as entry points for innovation in financial resilience and technical readiness.

Ultimately, we assert that the distinction between cultural competence (the practical ability to do things right) and cultural humility (the enduring attitude to be right and continuously correct power imbalances) is essential for achieving profound and lasting progress.

Chapter 8

Cultural Competence

The Transformative Power of Cultural Competence: An Appreciative Intelligence Approach

ultural competence is the bedrock of successful international development. It is defined as the capacity of individuals and organizations to understand,

communicate with and effectively interact with people across cultures. In the complex landscape of global development, this capacity is not merely an accessory skill but a fundamental requirement for meaningful engagement between developing countries and International Development Organizations (IDOs).

Such engagements require navigating deep-seated social, economic and political factors, all of which are profoundly shaped by local customs, beliefs and practices. Cultural competence is therefore essential for fostering effective and sustainable partnerships.

It is widely recognized that for a successful transition to a climate-resilient economy, developing nations often depend on access to international funding. However, cultural competence plays a critical role in unlocking these financial resources and ensuring that they are effectively utilized.

We are going to apply the 5-D Cycle of Appreciative Intelligence (Define, Discover, Dream, Design and Destiny), to illustrate how cultural competence is an indispensable lens through which sustainable progress becomes not only possible but more achievable. This is demonstrated across the following space dimensions:

The discovery and leveraging of local strengths and indigenous knowledge;

The design of projects that minimize cultural misunderstandings while addressing psychological drivers of resistance, such as loss aversion;

The development of climate finance proposals by articulating deeper, culturally grounded vulnerabilities that strengthen the justification for adaptation funding; and

The provision of a psychological bridge that enables sustained trust and transparent compliance, transforming the often-complex process of Monitoring, Reporting and Verification (MRV) into a shared form of communal accountability.

Ultimately, it is important to distinguish between cultural competence (the practical ability to engage effectively across cultures and cultural humility) and the enduring mindset of remaining open, reflective and committed to correcting power imbalances. Both are essential for achieving meaningful and lasting progress.

The transition to a climate-resilient economy relies heavily on international funding mechanisms. For developing countries, cultural competence is not only a driver of project success but also a critical factor in unlocking and sustaining access to these financial resources.

Applying the 5 Ds of Appreciative Intelligence to Cultural Competence

Definition (D1): The Core Effective Engagement

In the complex landscape of development, effective engagement requires navigating deep-seated social, economic and political factors, all of which are profoundly shaped by critical elements of cultural competence, local customs, beliefs and practices. This reinforces the importance of cultural competence in fostering effective and sustainable partnerships.

From this definition, we can confidently assert that cultural competence is the indispensable lens through which sustainable progress becomes not only possible but more achievable. It functions as a core Appreciative Performance Indicator that determines the true leverage and long-term impact of any intervention.

Discovery (D2): Unearthing the Cultural Assets

The Discovery phase focuses on identifying “the best of what is”, the strengths, successes and positive core elements that already exist within the system. In the context of cultural competence, this involves shifting attention from “what is lacking” to “what is already working” within local communities.

To truly discover, organizations must commit to understanding local context. Every developing country holds a unique tapestry of cultural norms, values and historical experiences that shape its social structure. Organizations that take time to listen and learn are far better positioned for meaningful and sustainable success.

A fictional account helps illustrate how the Discovery phase strengthens trust-building:

“The Water Project” launched a clean water scheme in a Sub-Saharan African village. The organization arrived with excellent engineering and good intentions, spending its first weeks doing what most outside organizations do: meeting with the Village Head, presenting the technical plans and securing his formal blessing. Six months later, only one of three planned boreholes had been completed, and turnout at the community maintenance training sessions remained thin.

A young field coordinator decided to find out why. What she discovered, through weeks of informal conversation rather than formal consultation, was that decisions about water, health and household resources in the village had never truly rested with the Village Head. That authority belonged to the Council of Mothers, a body of respected elder women whose influence over domestic life ran deeper than any formal title. The Head governed land and disputes; the Council governed water, food and children’s welfare. The organization had spent six months building trust with the wrong audience.

Rather than treating this as a setback, the team treated it as the missing piece. They requested an audience with the Council, this time coming not to present a finished plan but to listen. The Council’s questions revealed years of accumulated knowledge: which seasonal streams ran dry first, which households would need to share a pump, and how to structure a rotation so that no woman had to walk more than fifteen minutes at dawn. Within weeks, the remaining boreholes were sited using this local knowledge, and attendance at training sessions tripled.

By the project’s close, water collection time in the village had dropped by seventy percent. More tellingly, the Council had taken over scheduling for all future maintenance visits, without being asked. What began as a technical failure of engagement became, once the organization was willing to discover who actually held the knowledge and the trust, one of the scheme’s most self-sustaining sites”.

In this Discovery phase, it becomes clear that culturally incompetent organizations often operate from a “deficit model”, viewing developing nations primarily through the lens of problems; poverty, disease and lack of infrastructure.

In contrast, a culturally competent organization, informed by positive psychology, adopts a strength-based model that focuses on local resilience, strong social networks, indigenous knowledge systems and collective efficacy. This shift fundamentally changes the tone of engagement, fostering respect and increasing the community’s willingness to collaborate.

I recall applying this approach through the innovative integration of local storytelling during a data-gathering exercise in an indigenous community in Delta State, Nigeria.

The session began with a clear and critical objective: to document the decades-long history of the community’s struggle with access to reliable water. At first, the process was structured around standard, formal interview guides designed to collect quantitative facts about the water challenge. However, responses from elders and community leaders remained limited to brief, clinical statements, reflecting the rigidity of the “data gathering” format.

At this stage, the exercise was clearly operating within a deficit mindset, capturing statistics about the problem while missing the deeper emotional, cultural and historical context that shaped the community’s lived experience.

A strategic pivot was then introduced to break the formality and align with the community’s narrative-driven culture. The focus shifted from questions about failure to questions about memory and lived effort. A catalytic question - “What did the journey to the stream feel like?”; created space for a profound shift in engagement.

This opened the door for a respected elder, Mama Nkem, to move the conversation from scarcity to resilience. She began to describe the long communal trek to the stream under moonlight, the shared effort among women and the discipline passed down across generations.

Gradually, stories began to flow. What emerged was far richer than quantitative data alone could capture. The narratives revealed not just the hardship but also the strength of collective endurance, cultural rhythm and communal solidarity. The lived experience pointed to the immense physical toll and loss of productive time; dimensions far deeper than the initial structured questions had uncovered.

The session reached its most powerful moment when an elder shifted from spoken memory into song; an ancestral call-and-response chant passed down by their foremothers, traditionally sung during early morning journeys to the stream.

The room erupted as the entire community, including the previously silent youth joined in. This unscripted moment became a living historical artifact, capturing the long duration, physical effort and collective resilience required to overcome the challenge.

In that instant, the struggle for water was reframed. It was no longer seen merely as a present-day infrastructure failure but as an enduring historical narrative of collective strength and survival.

This experience revealed a powerful truth: cultural competence is not only about understanding customs but about adapting methodology in ways that unlock authentic local knowledge, memory and ownership.

Dream (D3): Envisioning a Culturally Aligned Future

The Dream phase encourages a radical reimagining of the future; “what might be” when cultural assets and existing strengths are fully activated and realized. It is a stage where organizations envision ideal outcomes that are deeply aligned with community values and lived realities.

In this vision, local stakeholders experience genuine participation and ownership. A culturally competent organization does not simply deliver projects to communities; it co-creates them with communities.

Consider a health program aimed at reducing maternal mortality. In the Dream phase, success is not defined only by statistical reduction but by the emergence of a community-owned health system.

To bring this vision to life, the organization facilitated a “Dreaming Workshop”, where local midwives (who held deep cultural authority) and medical doctors (who brought clinical expertise) co-designed a culturally appropriate clinic model.

Together, they imagined a facility that includes a “Shaman’s Corner” for traditional healing practices, alongside modern delivery rooms, respecting local beliefs about health and medicine. They also envisioned educational materials delivered in local languages and vernacular expressions to ensure accessibility and trust. The clinic is governed by a locally elected board, ensuring accountability and community ownership.

This participatory process ensured that the solution was not imposed externally but collectively imagined and owned internally, significantly increasing sustainability, effectiveness and long-term success.

Design (D4): Creating the Culturally Fit Blueprint

From the example discussed in the Dream phase, it becomes clear that the Dream phase naturally transitions into the Design phase. The focus of the Design phase is to define “what should be”; a set of provocative propositions or design statements that guide transformation in practice.

These propositions deliberately integrate cultural competence into the organization’s operating model, ensuring that implementation is not only effective but also culturally aligned.

The design must also include mechanisms for anticipating and mitigating cultural setbacks. In this regard, we explore two key design propositions:

Design Proposition 1: Context-First Intervention

All interventions must be preceded by a thorough cultural and historical audit conducted in partnership with local community leaders and historians. This helps to prevent cultural oversights, reduce resistance and strengthen local ownership.

The following fictional account illustrates this design principle in action:

A major foundation attempted to introduce financial literacy training in a remote Himalayan community. The initial rollout failed because a simple handshake gesture used during greetings was culturally interpreted as an aggressive demand rather than a sign of respect.

Following this setback, the program was redesigned to include a mandatory Cultural Interpreter Team. This team was responsible for vetting all communications, non-verbal cues and meeting protocols to ensure alignment with local customs and traditions, significantly improving engagement and trust.

This example demonstrates that effective design must intentionally embed cultural alignment into every layer of implementation in order to ensure long-term viability and acceptance.

Design Proposition 2: Sustainability through Indigenous Integration

Attaining true sustainability in emerging economies requires moving beyond the mere adoption of global technologies to shifting toward indigenous integration. This approach recognizes communities as the most affected by climate change, particularly indigenous peoples and local practitioners who possess centuries of “localized readiness”, lived experience and ecological wisdom that are often overlooked by international finance models.

A conservation group, Eco-Future, designed a forest protection program that deliberately avoided imposing Western-style national park boundaries. Instead, the design incorporated indigenous ancestral land-use practices, which already included rotational harvesting systems and sacred grove protection within their traditional governance structures. The result was a locally enforced, culturally accepted conservation model that proved both resilient and self-sustaining.

In this phase, cultural competence becomes essential because climate finance institutions increasingly require projects to demonstrate local ownership, sustainability and a clear understanding of vulnerability, all of which are deeply shaped by cultural context.

Mapping vulnerability (“the what is”) is therefore a critical component of the design stage. Climate change impacts are not experienced uniformly; they are interpreted and felt differently across cultures. This justifies why a culturally competent design team works closely with local communities to understand how climate risks affect their specific cultural practices, livelihoods and social structures. For example, the impact of sea-level rise on a fishing community’s ancestral grounds carries a cultural significance that goes far beyond its economic value. Climate finance proposals must be able to articulate this deeper, culturally grounded vulnerability in order to justify adaptation funding.

For instance, a reforestation or carbon sink project is far more likely to secure financing when it is designed around existing indigenous forest governance systems, rather than imposing a completely foreign, top-down management structure. This approach strengthens sustainability and reinforces local ownership, both of which are critical requirements for accessing climate finance.

Finally, the Design phase must also incorporate psychological safeguards to prevent resistance and ensure meaningful integration. New development interventions often trigger loss aversion; the fear that adopting the “new” will result in the loss of traditions, identity or social status. A culturally incompetent design ignores this reality. In contrast, a culturally competent design actively addresses it by framing new interventions as an evolution or enhancement of existing cultural practices. This reduces perceived threat and increases acceptance, continuity and long-term success.

Destiny (D5): Sustaining Trust and Compliance for Future Finance

The Destiny phase focuses on “what will be”; the continuous innovation, action and learning processes that sustain positive transformation over time. At this stage, cultural competence is no longer just embedded in projects; it becomes part of the organization’s core DNA.

Within the Appreciative Intelligence framework, the Destiny phase represents a pivotal transition where strategic “readiness” evolves into a lasting legacy of trust and compliance for future finance. It moves beyond initial funding access to emphasize sustained relationships, consistent performance, and long-term credibility, ensuring that climate finance is not a one-time inflow but a stable and recurring stream of support.

Sustaining trust and compliance for future finance is anchored on three critical pillars: Building trust through stringent compliance; Cultivating local cooperation (competence factor): and Unlocking Future Tranches (the financial outcome).

The final phase of the 5-D cycle is anchored on the “glue” of trust, ensuring that reporting, monitoring, and compliance systems remain accurate, consistent and sustainable over time.

The Psychological Bridge: Cultural Competence in Climate Finance Compliance

In the world of climate finance, discussions often focus on numbers, metrics and policy frameworks. However, there is a deeper, more human element that frequently determines whether a project succeeds or fails: The Psychological Bridge.

When we reach the Destiny phase of the framework; the stage where sustained action depends on stringent monitoring, reporting and verification (MRV), a subtle but critical challenge emerges. This is where culturally incompetent projects often encounter resistance, leading to weak compliance, financial inefficiencies and in some cases, donor fatigue.

The reality is that international climate finance systems are often governed by strict, Western-oriented reporting standards. When these frameworks conflict with local norms around time, communication styles and information sharing, compliance does not merely slow down, it weakens significantly.

These compliance systems can be understood as creating a form of “cognitive load”. If communities perceive complex reporting tools as external impositions, they may naturally resist them. This resistance can result in poor data quality, delayed reporting or even non-compliance.

However, the challenge goes beyond administrative procedures; it reflects fundamentally different understandings of accountability. In many international systems, accountability is individual, documented and evidence-based. In contrast, many local contexts define accountability as communal, rooted in shared trust, oral agreements and collective responsibility rather than written records or spreadsheets.

To build a successful Psychological Bridge, compliance must be reframed. It should not be treated as an external burden but as a shared accountability process that respects and integrates local ways of knowing. When this bridge is established, compliance shifts from a technical obligation to a culturally grounded practice of collaboration.

In this way, we move beyond “checking boxes” toward building partnerships that are genuinely resilient, inclusive and sustainable.

Closing Insight

Cultural competence is the indispensable infrastructure for effective international development and climate action. It is the psychological key that unlocks sustainable trust, transforms external compliance requirements into shared community accountability and converts abstract climate finance into concrete, resilient and culturally grounded realities.

Cultural competence and cultural humility represent two distinct yet closely related approaches to engaging effectively and respectfully across cultures. While cultural competence focuses on the “do”, cultural humility emphasizes the “be”.

In cross-cultural work, especially within the sensitive space of international development, these two approaches play complementary roles. A simple way to distinguish them is this: competence is about what we do, while humility is about who we are.

Cultural competence can be understood as a professional toolkit. It consists of the skills, knowledge and systems individuals or organizations develop to ensure that interactions are effective, respectful and contextually appropriate. It involves research, training and the establishment of organizational practices; such as culturally sensitive communication strategies that help programs function effectively and avoid unnecessary misunderstandings.

Within the Appreciative Intelligence framework, cultural competence becomes most visible during the Design phase. This is where interventions are intentionally shaped to be culturally fit, ensuring alignment with local realities. At this stage, the focus is on doing things right; applying knowledge and skills to design effective, context-sensitive solutions.

If cultural competence is a toolkit, cultural humility is a mindset. It is not a destination to be reached or a certificate to be earned; rather it is a lifelong commitment to self-reflection, learning and growth. It involves recognizing that, as outsiders or professionals, there is often an inherent power imbalance between us and the communities we serve.

Cultural humility calls us to engage with an attitude of respect, openness and genuine curiosity. It requires continuous reflection on our own assumptions, biases and the influence of our institutional perspectives. Within the Appreciative Intelligence framework, this mindset becomes the heartbeat of the Discovery phase, where we listen deeply and learn from existing realities. It also anchors the Destiny phase, ensuring that accountability remains grounded in mutual respect and responsibility toward the communities involved.

The reality is that both cultural competence and cultural humility are essential. Cultural competence enables international organizations to do things right by ensuring effective communication, appropriate design and technically sound interventions. Cultural humility, however, ensures that we are right, remaining open, teachable, respectful and conscious of power dynamics within partnerships.

When both are intentionally integrated, they move development practice beyond surface level engagement toward deeper, more sustainable collaboration. This combination strengthens trust, improves effectiveness and ultimately contributes to a more equitable and resilient climate future.

Actions such as capacity building in “investor-ready” communication and developing a “common language” for impact are designed to translate local assets into globally recognized investable proposals.

Chapter 9

The Appreciative Intelligence Lens

s we begin to conclude, we turn our attention to the global discourse on climate change.

Current climate discussions often emphasize the challenges such as resource shortages and implementation gaps that hinder developing countries from accessing vital climate finance. While these challenges are real and significant, a persistent focus on what is lacking can unintentionally obscure the existing assets that hold the key to scalable solutions and effective climate action.

By introducing the Appreciative Intelligence lens, we are offering a gentle yet powerful shift to how we engage in these discussions and present our perspectives at global climate negotiations and conferences. Rather than centering on what is missing or broken, the Appreciative Intelligence framework invites us to focus on what already works; to identify, amplify and build upon existing strengths.

This approach does not ignore challenges. Instead, it encourages us to stand on a stronger foundation by recognizing and leveraging what is already functioning well. In doing so, local efforts are reframed as viable, scalable opportunities that naturally attract collaboration and global support. To ground this examination, we will consider a specific encounter: the NIRSAL COP30 side event.

By honoring existing strengths, we can begin to imagine what is truly possible. We can envision a future where side events and presentations are more than mere reports. They become strategic storytelling designed to inspire, connect and influence international partners. In this vision, local wisdom is seamlessly integrated into compelling proposals that attract global capital and national pavilions evolve into dynamic hubs of co-creation where stakeholders collaborate to design high-impact, integrated climate solutions.

Reframing COP Participation of Developing Countries: COP30 in Focus

As we examine COP30 and beyond, a gentle but profound shift is emerging on how we understand the participation of developing nations at international climate events. This marks the Definition phase of Appreciative Intelligence.

For too long, the conversation has centered on what is missing; the gaps in funding, limited technical capacity and the challenges faced by subnational entities. However, when viewed through an appreciative lens, a different narrative emerges; one that begins not with problems to be solved but with the “best of what is”.

Having established the definition of the situation, we move into the Discovery phase by recognizing the deep-seated passion and unwavering commitment already present within developing nations. When subnational entities, government institutions (such as development commissions and subnational investment agencies) and private sector actors gather at global summits, they are not merely attendees; they represent a rich reservoir of local knowledge and a nuanced understanding of social and ecological realities on the ground.

These actors have built strong internal networks and a shared sense of purpose that form the foundation for collective action. They demonstrate resilience and innovation, having implemented climate solutions even under severe resource constraints. Their willingness to share experiences and learn from peers reflects a proactive spirit that is ready for meaningful global engagement.

By honoring these strengths, we begin to enter the Dream phase, imagining what might truly be possible. We envision a future where side events and presentations are no longer limited to reporting progress but become strategic storytelling platforms that inspire and resonate with international partners. In this vision, local wisdom is seamlessly woven into compelling proposals that attract global capital, while national pavilions evolve into vibrant co-creation hubs where diverse actors collaborate to design high-impact, integrated climate solutions.

We also see delegates returning home not only with insights but with concrete partnerships and commitments, fully empowered to navigate the language of international finance while remaining firmly rooted in their own values and realities.

To translate this dream into a lived reality, we must carefully design a pathway that builds on existing potential. This involves moving toward a future where capacity building is centered on “investor-ready” communication, enabling local leaders to translate grassroots achievements into financial models that are clearly understood within global finance systems. It also requires the creation of standardized impact languages that bridge local terminology with international reporting requirements, making access to funding more straightforward and inclusive.

By proactively facilitating matchmaking and establishing dedicated engagement spaces well before formal summits, we can ensure that the right projects connect with the right funders at the right time. In sharing stories of those who have already successfully navigated this process, we create both a practical blueprint and a sense of possibility for others to follow.

Ultimately, this approach shifts the focus away from deficits and moves toward a more optimistic and proactive ecosystem; one in which the participation of developing countries at COP is no longer viewed as mere attendance but as a strategic force that actively attracts the capital required to secure our shared future.

Leveraging Appreciative Intelligence for Strategic Communication

The NIRSAL COP30 Side Event Presentation

We now turn to the application of this “reframing” through the case study of the NIRSAL side event at COP30, held in Belém, Brazil, in November 2025.

As a leading institution from a developing country, the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) held a side event served as a strong demonstration of institutional maturity and financial readiness. This exploration highlights how NIRSAL applied the Appreciative Intelligence approach, alongside its four interconnected pillars; Risk-Sharing, Technical Assistance, Insurance Advocacy and Incentive Mechanisms to strategically signal its strength, competence and readiness to absorb, manage and scale international climate finance.

The strategic objective of leveraging Appreciative Intelligence was to present a comprehensive blueprint for transforming COP participation by developing country institutions from mere attendance into strategic engagement platforms that actively attract capital.

The Appreciative Intelligence lens offered the necessary paradigm shift to bridge the gap between local wisdom and global capital, ultimately strengthening engagement for climate finance and supporting the delivery of a more resilient and sustainable future.

A New Climate for Growth: The NIRSAL Story at COP30

The Vision: Building the Infrastructure for Finance

The session opened with a compelling address by the MD/CEO of NIRSAL Plc., who set a bold tone for the discussion. He explained that NIRSAL is not merely a financial institution but a strategic bridge established by the Central Bank of Nigeria (CBN) to close the long-standing finance gap that has constrained the agricultural sector.

“We are here to show you that Nigerian agriculture is not a risk to be avoided, but a bankable, climate-resilient enterprise ready for global partnership”.

He emphasized NIRSAL’s mandate to redefine, measure and reprice agricultural risk, transforming the entire value chain from soil to supermarket shelf. With over ₦270 ( about USD 210 million) billion already facilitated through its systems, the message was clear: NIRSAL represents an institution of demonstrated scale and maturity.

The Blueprint

Following the MD’s remarks, I took the podium to unpack the “common language” behind NIRSAL’s operational success. Addressing a room of seasoned investors, I broke down its systemic intervention into four interconnected pillars designed to strengthen and unlock broken agricultural value chains.

1. Risk-Sharing: The Shield

I began with the Credit Risk Guarantee (CRG), describing it as the core financial engine that reduces the “fear of loss” within commercial banking systems. By covering up to 75% of potential losses on both principal and interest, NIRSAL effectively absorbs a significant portion of default risk. In doing so, banks are encouraged to lend with a level of confidence that previously did not exist in the agricultural sector.

2. Technical Assistance: The Architect

Furthermore, I maintained that risk often arises not from the absence of capital but from gaps in knowledge and execution capacity. Through its Technical Assistance pillar, NIRSAL functions as an architect of capability, supporting banks in properly assessing and monitoring agricultural projects while also developing tailored financing models for key value chains such as rice, cocoa and cassava.

This ensures that projects are not only funded, but are structured to be commercially viable and “bankable” from the outset.

3. Insurance Advocacy: The Safety Net

Addressing the climate shocks that are central to the COP30 agenda, I highlighted NIRSAL’s strategic shift toward index-based insurance. By moving beyond traditional indemnity models and leveraging weather and yield data, NIRSAL introduces a critical safety-net into the agricultural system.

In the event of droughts, floods or other climate-related shocks, these instruments stabilize farm incomes and ensure that environmental disasters do not automatically translate into financial collapse

4. Incentive Mechanism: The Reward

Finally, I introduced the “pull” factor within the system: a cash rebate mechanism that rewards financial discipline. Borrowers in good standing who meet repayment obligations on time receive a refund ranging between 20% and 40% of their interest payments.

This approach transforms credit discipline into a tangible financial advantage, effectively making NIRSAL-backed loans more attractive and in many cases, more affordable than standard commercial lending products.

The Outcome: A Ready Partner

As the presentation concluded, the room buzzed with a clear realization: NIRSAL had moved decisively from “Discovery to Design”. By demonstrating operational clarity, institutional depth and scalability, NIRSAL positioned itself not as a seeker of climate funds, but as a credible and structured delivery partner for the Green Climate Fund and the broader global climate finance agenda of over USD 1.3 trillion.

In the heart of Belém, NIRSAL made a compelling case that when global capital seeks viable pathways for impact, it naturally gravitates toward institutions that have already laid the foundation for execution, accountability and scale. This is “Readiness”

A Journey of Strategic Reimagining: NIRSAL’s Path to Global Readiness

NIRSAL’s journey is more than an institutional upgrade; it is a strategic reimagining of what becomes possible when challenges are viewed through the lens of Appreciative Intelligence.

By intentionally moving through the structured phases of the 5-D cycle, the organization successfully reshaped its entire narrative. Instead of remaining anchored in deficit-based conversations that often dominate development discourse, the focus shifted toward opportunity creation, system strengthening and the projection of institutional readiness.

This methodology enabled NIRSAL to reframe local climate and agricultural challenges not as limitations, but as high potential, investment-ready opportunities capable of attracting global partnership and financing.

This sense of readiness was clearly demonstrated during the side event, as the organization’s intrinsic strengths were brought to life through its proprietary four-pillar structure. The presentation was not merely technical; it served as tangible evidence of a well-structured and institutionally resilient organization. By showcasing these pillars, NIRSAL revealed its inherent capacity to innovate and operate effectively, even within resource-constrained environments.

A strong sense of operational clarity emerged, anchored in a transparent framework that guides project execution, ensures risk mitigation and enables the kind of verifiable impact measurement that international finance institutions highly value.

The impact of this shift has been significant, as reflected in the exceptional internal A+ rating of the event. More importantly, it has elevated the perception of what a well-structured institution in a developing country can achieve. By unveiling often overlooked internal capacities, NIRSAL sent a clear and proactive signal to the global community.

To multilateral development banks and other international climate finance institutions, the message is unambiguous: NIRSAL has the competence and readiness to absorb, manage and scale climate finance effectively.

This success reflects a vision that honors local wisdom and translates it into credible, investable propositions; ultimately building the investor confidence required to secure a more sustainable and resilient future for all.

Core Lesson

The central lesson is clear: readiness for climate finance is not defined by the absence of deficits but by the strategic articulation of existing strengths.

The Power of Reframing: By shifting focus away from challenges and deficits toward core strengths; such as passion, resilience and rich local knowledge, this approach established a more effective pathway for transforming participation into meaningful engagement.

Key actions, including capacity building in “investor-ready” communication and the development of a shared “common language” for impact, are designed to translate local assets into globally recognized, investable opportunities.

The Blueprint in Action

The case of NIRSAL at COP30 provides a clear demonstration of the Appreciative Intelligence lens in practice. Through its well-structured four pillars, the organization effectively showcased institutional maturity, operational clarity and investment viability.

This strategic use of appreciative communication sent a strong signal of finance readiness to multilateral development banks and international climate funds. Moreover, the NIRSAL model offers a practical framework for translating the 5-D cycle (Definition, Discovery, Dream, Design and Destiny) into actionable financial and operational strategies; This is the Blueprint

Bridging the Gap

Ultimately, the Appreciative Intelligence lens serves as a powerful tool for transforming the “finance gap” into an “opportunity gap”. It provides a structured approach for reframing COP participation, equipping developing countries with both the mindset and practical steps required to move from aid recipients to credible, competent and attractive partners for climate finance investment.

The strategies outlined here foster an optimistic and proactive environment, one that ensures climate finance is directed toward areas with the highest potential for sustainable impact.

A resilient future is built on existing strengths, not perceived gaps. For emerging economies, the Destiny of Readiness is not defined by external pledges but forged through internal strategic intelligence and a vision that transforms local potential into a legacy of climate leadership.

Chapter 10

The Destiny of Readiness

Transforming the Finance Gap into an Opportunity Bridge

he global climate crisis stands as the defining challenge of our generation, demanding a massive and unprecedented overhaul of the world economy.

At its core lies a fundamental moral and financial obligation: International Climate Finance (ICF). We began by establishing a key truth, ICF is not an act of charity but a necessary mechanism through which historically high emitting nations support vulnerable developing countries in achieving mitigation, adaptation and addressing Loss and Damage.

Yet, as we observed through this journey, the promise of trillions is often overshadowed by the persistent reality of a significant “finance gap”. This gap is characterized by complex and opaque processes, alongside systemic barriers that continue to leave many emerging economies underserved.

By reframing these challenges, the discussion moves beyond simplistic narratives of failure or blame. Instead, it adopts a more nuanced, systems-informed perspective; recognizing that the barriers to climate finance are not isolated issues but interconnected structural and institutional gaps in national readiness and capacity.

The Blueprint of Appreciative Intelligence

The central contribution of this work is the assertion that closing the climate finance gap requires a fundamental shift in perspective; from a deficit mindset, focused on what is broken, to an Appreciative Intelligence lens that identifies, strengthens and scales what is already working.

The Appreciative Inquiry 5-D cycle provides a clear and practical blueprint for this transformation:

Definition and Discovery (What is Strong)

Readiness must begin with the intentional definition of the gaps, and identification and mapping of existing national assets. This involves recognizing institutional strengths, validating available technical expertise and appreciating the depth of local knowledge systems.

It also includes acknowledging indigenous accountability structures such as the Otu system referenced in “The Whispering Winds of Adagba” in Chapter 3. It also recognizes the communal cooperation models (Agile) that already formed the foundation of community resilience. These domestic engines of change, often overlooked, represent the true starting point for effective climate action.

Dream & Design (What Should Be)

The strengths identified during the Discovery phase must then be translated into a bold, fundable vision. This stage goes beyond aspiration but must embed the co-creation of practical and actionable strategies.

It emphasizes sovereign capacity-building as the primary investment focus and ensures that strategic alignment frameworks such as Country Partnership Frameworks are driven by Shared Contextual Ownership, grounded in local realities and insights.

Destiny (What Will Be Sustained)

The final phase focuses on execution and sustainability. It requires embedding strengthened capacities into everyday institutional operations, ensuring the consistent application of Monitoring, Reporting and Verification (MRV) systems and actively managing knowledge to preserve and expand institutional maturity.

When effectively implemented, this cycle transforms perceived weaknesses into strategic assets, positioning developing countries for sustained access to and management of climate finance.

A call to Action for a Resilient Future

The Appreciative Intelligence approach offers clear, strategic actions for every stakeholder within the climate finance ecosystem:

For National Governments and Public Institutions

The priority must be the deliberate strengthening of domestic capacity. This includes identifying and empowering key national institutions to attain Direct Access Entity (DAE) status, enabling them to receive and manage funds directly while fostering true national ownership.

In addition, leadership must address the cognitive gap highlighted by the “COP as a Cup” analogy, ensuring that participation in global platforms is driven by strategy and preparation. International engagement must shift from a ceremonial “jamboree” to a focused, results-oriented process.

For the Private Sector

The scale of climate action required lies within private capital. Emerging economies must deliberately create enabling environments that attract this investment. This involves developing strong green business cases that clearly demonstrate both financial returns and measurable climate and social impact.

Equally important is the strategic use of blended finance mechanisms; such as grants, guarantees and concessional funding to de-risk projects and make them viable for commercial investors.

For Local Communities and Civil Society Organizations (CSOs)

Local communities and CSOs remain central to delivering real adaptation and resilience outcomes. Their strength lies in trusted networks and strong accountability structures at the grassroots level.

It is highly recommended that these groups be formally engaged and equipped to serve as Local Monitoring Agents (LMAs), integrating indigenous knowledge into decentralized Monitoring, Reporting and Verification (MRV) systems. This approach ensures the generation of reliable, verifiable data required to access major climate finance streams and emerging carbon markets.

From Recipient to Partner

At its core, this work presents a clear pathway for transforming the “finance gap” into an “opportunity bridge”. By embracing the Appreciative Intelligence lens, emerging economies gain both the mindset and the practical tools needed to transition from passive recipients of aid to credible, competent and attractive partners for climate finance investment.

A Final Reflection

The path to a resilient and prosperous future is not found in what is missing, but in what is already strong.

The destiny of readiness for emerging economies will not be defined by external pledges alone. It will be shaped by the cultivated internal strategic intelligence and the appreciative vision these nations choose to deploy; transforming existing potential into a lasting legacy of climate leadership.

The Destiny of Readiness: A New Vision.

Glossary

ACReSAL – Agro-Climatic Resilience in Semi-Arid Landscapes

AF – Adaptation Fund

AI – Artificial Intelligence

ApI – Appreciative Intelligence

- A+ – Performance rating (non-acronym, retained for context)

BFS – Blended Finance Structuring

CBN – Central Bank of Nigeria

COP / COP30 – Conference of the Parties (30th session)

CPF / CPFs – Country Partnership Framework(s)

CPDAE – Community of Practice for Direct Access Entities

CRG – Credit Risk Guarantee

CSOs – Civil Society Organizations

DAE – Direct Access Entity

DFIs – Development Finance Institutions

DFC – Development Finance Corporation (also referenced as Debt-for-Climate mechanism in context)

EEZ – Exclusive Economic Zone

ESG – Environmental, Social and Governance

ESS – Environmental and Social Safeguards

ETF – Enhanced Transparency Framework

FAO – Food and Agriculture Organization

GCF – Green Climate Fund

GEF – Global Environment Facility

GPSA – Global Partnership for Social Accountability

GST – Global Stock Take

ICF – International Climate Finance

IFC – International Finance Corporation

IDO(s) – International Development Organization(s)

KPI – Key Performance Indicator

LDCs – Least Developed Countries

LMAs – Local Monitoring Agents

LT-LEDS – Long-Term Low-Emission Development Strategies

M&E – Monitoring and Evaluation

MDBs – Multilateral Development Banks

MEL – Monitoring, Evaluation and Learning

MAPS – Mainstreaming, Acceleration and Policy Support

MRV – Monitoring, Reporting and Verification

NDA – Designated National Authority / National Designated Authority

NDCs – Nationally Determined Contributions

NAPs – National Adaptation Plans

NCIPs – National Climate Investment Plans

NGOs – Non-Governmental Organizations

NIRSAL – Nigeria Incentive-Based Risk Sharing System for Agricultural Lending

OECD – Organisation for Economic Co-operation and Development

PPF / PPFs – Project Preparation Facility / Facilities

SCD – Systematic Country Diagnostic

SIDS – Small Island Developing States

SPMU – State Project Management Unit

TNC – The Nature Conservancy

UNDP – United Nations Development Programme

UNFCCC – United Nations Framework Convention on Climate Change

5-D Cycle – Define / Discovery / Dream / Design / Destiny (Appreciative Intelligence framework)