The Asian region has emerged as the largest recipient of climate-related development finance in recent years. However, the distribution of financial flows within and among countries remains uneven. Numerous climate finance readiness programs conducted by the Green Climate Fund (GCF) and other development partners consistently highlight the lack of internal country capacity as a major obstacle, leading to inadequate cost assessment and limited access to climate finance.
This project aims to conduct an in-depth analysis of the policy landscape in four countries: Bangladesh, Nepal, Cambodia, and Thailand. The primary goal is to identify and address the barriers preventing the enhancement of climate finance flows at both the national and sub-national levels. To achieve this, the project will undertake a comprehensive barrier and needs assessment involving policy makers, climate finance practitioners, civil servants, and decision-makers. The assessment will focus on identifying capacity gaps required to develop an enabling environment that facilitates inclusive climate finance flows, with particular emphasis on adaptation finance.
This project aims to conduct an in-depth analysis of the policy landscape in four countries: Bangladesh, Nepal, Cambodia, and Thailand. Photo: Canva
Based on the assessment findings, a tailored capacity development program will be designed, encompassing the creation of a training curriculum for professional development. The program will promote national and regional knowledge sharing and expertise exchange to foster a deeper understanding of climate finance. As part of this initiative, a foundational course for national policymakers and a specialized course for sub-national public institutions will be launched. These courses will serve as a platform to refine the developed curricula for future deliveries and to facilitate replication and scaling up. Additionally, a comprehensive training evaluation will be conducted to gather insights and lessons learned for both the training team and the project team as a whole.
Knowledge products developed under this project will include capacity needs assessment policy briefs and case studies. These outputs will inform future climate finance readiness programs in the participating countries and contribute to identifying a complementary mix of financial instruments that can support climate adaptation across different scales, magnitudes, and frequencies. Throughout all project activities, gender equality and social inclusion principles will guide decision-making, ensuring that climate finance perspectives are approached from the perspective of gender justice and social inclusion (GESI).
Climate change is deeply impacting Asia. From rising sea levels to severe heatwaves, the region faces increasing risks and a pressing need for funding to support adaptation and resilience. However, despite billions of dollars pledged globally in international climate finance, much of this funding does not reach the communities that need it most.
This challenge inspired the project “Enabling Inclusive Climate Finance in Asia Through Fit-for-Purpose Capacity Development Planning and Action.” Over two years, our team worked across Bangladesh, Cambodia, Nepal, and Thailand to identify policy and institutional barriers, assess training needs, and co-develop solutions. The outcome: a new regional curriculum on climate finance, piloted in 2025, that bridges research and practice.
Our research confirmed a familiar reality for many finance and environment officials in the region: systemic policy barriers are hindering the flow of climate finance. These include fragmented governance, overlapping or unclear mandates among ministries, limited coordination and enforcement, weak data systems, and low private sector engagement. Collectively, these issues create bottlenecks that make it more difficult to access and effectively deploy funds.
At the same time, capacity gaps became evident from surveys and focus groups involving over 100 stakeholders across the four countries. Policymakers, regulators, and practitioners emphasized the need for stronger skills in risk assessment, obtaining international concessional funds, climate finance accounting, and rights-based approaches to inclusion. Respondents also stressed the importance of practical training, including workshops, on-site learning, and interactive case studies, which are delivered in both English and local languages to maximize accessibility.
Rather than leaving these findings on paper, we translated them into a concrete solution: a 16-module training curriculum on climate finance. Developed by Chulalongkorn University’s Center for Ecological Economics in partnership with SEI, the course covers both foundational topics (such as international climate policy, just transition, and finance instruments) and specialist modules (on adaptation, carbon pricing, green bonds, and climate derivatives).
The design of the curriculum directly reflects the barriers identified. For example:
In August–September 2025, the program was piloted in two modalities: in-person sessions in Thailand and fully online delivery for Cambodia, reaching government agencies, regulators, private finance institutions, and research organizations. This dual approach tested how training can be adapted to national contexts while remaining regionally relevant.
Early feedback from participants shows strong demand not only for technical skills, like designing green bonds or navigating carbon markets, but also for broader literacy on climate risks and opportunities. Participants valued the mix of policy grounding, case studies, and practical tools. Importantly, they recognized that strengthening national capacity is essential for unlocking larger flows of finance and ensuring those flows are inclusive.
The project offers three clear lessons for the future:
As Asia faces intensifying climate risks, building the knowledge and skills to mobilize finance is as critical as the finance itself. This project demonstrates that by breaking down barriers and investing in people, we can bring climate finance closer to the communities who need it most.
An interactive map showing barrier interconnections in climate finance in project countries. Photo: Anastasia Maga / SEI Asia.
A table identifying number of times barriers were identified in expert interviews (2024). Photo: Anastasia Maga / SEI Asia.
As part of the “Enabling inclusive climate finance in Asia through fit-for-purpose capacity development planning and action” project, SEI identified capacity gaps hindering effective and inclusive climate finance policies and access to climate finance and then developing tailored capacity development programs for national and subnational policymakers to address these gaps. We assessed these needs through this survey and turned the key findings into the dashboard.
Key findings on the Regional Capacity Gap Dashboard. Graphic: Anastasia Maga / SEI.
Journal article / This special section explores knowledge co-production - as a social and technological phenomenon - in the context of ecological governance in Southeast Asia.
Journal article / This study examines decentralized drinking water services, through the lens of business model innovation.
Other publication / This report explores business models and finance options that can help accelerate the use of clean-cooking technologies in last mile communities.
