Importantly, NCFs must be firmly rooted in national realities. National priorities and circumstances provide
an important context for NCF delivery and can lead to opportunities and challenges as an NCF becomes
operational. To provide stability, NCFs should take this into account by aligning with national climate
change strategies, institutions, frameworks and stakeholders; however, NCFs must also have the flexibility
to adjust over time.
Maintaining both stability and flexibility is imperative to stakeholder engagement. Throughout the design
phase of an NCF, stakeholder consultations are critical to ensure that the NCF is robust and effective.
Including various government, multilateral, bilateral, private and civil society actors in the development
and establishment of the NCF helps to more clearly identify needs and requirements and to accommodate
best practices.
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