Best Practice Report


Integrating subnational action / Building capacity and devolving authority

3. Building capacity and devolving authority

Provide new powers, budgets, human and technical resources and opportunities for peer learning.

Implementation of national green growth strategies often depends on the financial and human capacity of subnational government. In many countries, the tasks devolved to subnational governments substantially exceed their capacity to raise revenues from sources under their control. Such governments must therefore depend on intergovernmental fiscal transfers to close the resulting fiscal gap (Bird, 2011). This is also true in the case of national green growth strategies, and therefore central governments often need to allocate funding to subnational governments or to provide a delivery mechanism that enables them to have direct access to such finance. Research in India assessing the progress of development and implementation of state action plans on climate change found that while most states had identified capacity building priorities and financial needs, only one had identified sources of finance (Mishra et al., 2011).