Introduction to financial assessments to address climate change

The purpose of UNDP’s financial assessments is to determine the incremental, direct monetary requirements of climate change measures, the necessary shifts and increase in finance needed, as well as the potential sources of this finance. The financial assessments support countries to move from planning to implementation of climate action. The assessments can be used to identify pathways for reaching any national target (e.g. NDCs, LT-LEDS). They specifically help countries to:

• Develop evidence for climate finance action;
• Strengthen national budgets;
• Foster inter-agency collaboration;
• Inform policy making
• Make a business case for climate finance
• Use financial assessments as a continued planning tool; and
• Enhance participation in international negotiations.

The methodology was developed in 2008 and has been updated in 2025. The approach provides a general methodology, worksheets, and detailed material on 12 key mitigation and adaptation sectors. It is available in English, French, Spanish and Russian.