Enabling framework conditions (EFCs) are essential for scaling subnational climate finance because they provide regulatory clarity, strengthen institutional capacity, mitigate investment risks, promote stakeholder engagement and improve access to finance to support long-term sustainability. By creating a conducive environment for climate finance, EFCs help unlock the potential of state and city entities to drive climate action and contribute to the achievement of climate goals. Such subnational EFCs improve access to finance by creating the right policy environment, strengthening subnational climate data, and ensuring coordination across all levels of government - from state to city level.

This report presents the findings from the EFC assessment of Coimbatore. The United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) developed a subnational EFC assessment tool under the Urban Act Project in partnership with the Cities Climate Finance Leadership Alliance. This tool evaluates city EFCs against subnational climate finance. As part of the Development Account 16th Tranche Global project (DA16), ESCAP intends to assess and strengthen subnational EFCs and the capacities of cities to drive scalable climate action under DA16 and IKI funded Urban Act Project.