How climate finance regulatory and reform-based advisory works best in crisis

Applications during COVID

While perhaps obvious, one of the most effective steps to help manage climate finance regulatory and reform-based advisory projects under crisis is the simplification of their design and scope. Get rid of non-essentials in regulatory work. This is especially important for public-sector client interventions where regulatory responses and government entities are expected to make significant changes (e.g. to procedures, policies, and coordination mechanisms). 150 Advisory projects from five different regions, including financial crises, political insurgencies and conflict settings in Europe Central Asia, were analyzed. 

Amongst the projects that used the strategy of design simplification, 65% achieved successful development effectiveness ratings. Most of the projects that were rated negatively were in high risk countries highly dependent on security conditions to improve, and thus simplification alone would be unlikely to manage ratings. Other recommendations for weathering the crises in the private sector advisory were work with recognized partners and products, measure strength of project change agents and critically review and manage the timeline of Advisory interventions.

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