Capacity development
Capacity development is a core element of IKI Small Grants: In addition to financing local projects, IKI Small Grants strengthens more than 200 climate and biodiversity actors worldwide in increasing their impact as agents of change. Stronger local actors deliver more relevant solutions, access further funding, and ensure that results endure beyond individual projects.
Together with the IKI Small Grants programme, each implementing organisation and funding institution identifies concrete capacity needs. From specialist skills such as results-based project management or fundraising to optimised organisational processes, and stronger networks. This will support the successful implementation of their projects and lay the groundwork for more ambitious initiatives in the future.

Investing in capacity development improves an organisation’s positioning and credibility, creates institutional stability and enables successful approaches to be scaled up, securing lasting benefits for local communities.
Capacity development turns a time‑bound project into a long‑term investment in local leadership and institutions, which is essential for lasting climate and biodiversity action.
In addition to building the capacities of funded organisations, the IKI Small Grants approach also strengthens the capacities of the projects’ target groups.
Strengthening institutions in the long term
All organisations supported by IKI Small Grants can access a range of capacity development activities:
Individual support: Each funding institution and implementing organisation is accompanied by a team of GIZ experts who provide support tailored to the individual needs of each institution. In addition, GIZ country offices provide technical or administrative assistance, for example by providing one-on-one advice on financial management e.g. accounting, procurement, etc.
General information events and trainings: General information events and trainings are primarily delivered online for the entire community of grant recipients. They provide guidance on key processes – such as the IKI Small Grants project cycle from application to project completion and binding public relations guidelines – as well as thematic topics like access to carbon markets and knowledge platforms. These events are organised by GIZ, and for selected sessions external experts are invited to share specialist knowledge.
Networking activities: To embed IKI Small Grants projects in national climate and biodiversity policies and connect implementing organisations with relevant stakeholders and donors, the IKI Small Grants team supports partners in expanding their networks. GIZ uses its national and international networks for targeted matchmaking and outreach. In addition, the team hosts digital peer-to-peer exchanges on technical topics such as clean cooking or climate-smart agriculture to link implementing organisations with one another and foster global knowledge sharing.
Funding for self-organised Capacity development measures: A notable feature of the IKI Small Grants programme is the budget allocated for self-organised climate change measures within each grant agreement. Implementing organisations and funding institutions can prioritise their most relevant CD needs and design locally implemented measures tailored to their context. To support this, IKI Small Grants provides a CD self-assessment tool that groups needs by thematic area. Measures should address both individual staff competencies and organisational structures and processes. Examples include trainings on conflict management or internal control systems, developing a gender strategy, and establishing a gender focal point.
Supporting materials: Training content and practical guidance on topics such as monitoring and evaluation, funding opportunities, and data management software are available not only to IKI Small Grants grantees but also publicly via the IKI Small Grants website’s knowledge hub: Training Content | IKI Small Grants.
Spreading the concept
Within it’s “Funding the Funders” funding line, IKI Small Grants finances national institutions in ODA-eligible countries to manage locally-led climate or biodiversity projects, which are selected through their own call for proposals/idea competition. More on “Funding the Funders” can be found here: Funding Institutions – IKI Small Grants
Funding institutions and the organisations supported by them – so called sub-grantees – also receive support in capacity development:
Given the diversity of funding institutions, IKI Small Grants supports each with different measures based on their individual level of maturity, strategic goals, and internal capacity, for example:
- Institutional capacities and financial sustainability
- Call for Proposals design and management
- Integrating gender equality throughout the project cycle
- Internal Safeguards
- Grant management
- Financial reporting
- Monitoring and Evaluation
- Peer Learning and Access to Networks
- Portfolio Expansion – developing climate change and/or biodiversity expertise
- Alignment with national climate strategies (NDC, biodiversity strategies, NAP)
- Readiness for larger climate finance mechanisms, to access and manage climate and biodiversity funds from national, private or international sources
Additionally, all funding institutions offer capacity development support to their sub-grantees.
These measures span a range of topics including:
- Financial and grant management
- Technical project management and monitoring
- Safeguards and gender integration
- Leadership development for youth and women
- Enterprise development and small business incubation
Capacity development impact
Capacity development makes local implementing organisations more effective, sustainable, and autonomous beyond a single grant. It turns a funded project into lasting strengthening of people and institutions.
Why it matters for local organisations
- Closer to problems and solutions: Translates local contextual knowledge into high‑quality, scalable solutions by adding technical skills, tools, and systems.
- Less dependency: Stronger management, finance, safeguards, M&E, and fundraising reduce reliance on intermediaries and enable direct funding management.
- Managing complexity and risk: Builds capacity to meet safeguards, gender/inclusion, reporting, and audit standards while keeping community ownership.
- Credibility and trust: Better governance and transparency increase trust with communities, governments, and donors, unlocking larger cooperation.
What capacity development enables
- Better project quality: New technical skills (adaptation methods, biodiversity monitoring, carbon accounting) improve effectiveness and learning.
- Stronger organisations: Robust finance, controls, procurement, safeguarding, and M&E enable reliable planning, implementation, documentation, and learning.
- Improved resource mobilisation: Fundraising, proposal, budgeting, and negotiation skills diversify funding and partnerships.
- Stronger networks: Networking and advocacy connect organisations to government, research, private sector, and civil society, aligning with broader agendas.
- Empowered staff: On‑the‑job learning strengthens confidence, retention, leadership pipelines, and talent attraction.
Targeted impacts after the grant ends
- Institutional sustainability: Stronger systems, strategy, staff, and governance allow continuous delivery and compliance across new projects.
- Scaling and replication: Tested methods (e.g., community restoration, climate‑smart agriculture, participatory monitoring, gender‑responsive approaches) spread to new sites, policies, and partners.
- Stronger national role: Influencing policies, joining multi‑stakeholder platforms, and representing community interests more effectively.
- Larger and diverse funding: Progression from small projects to larger grants, consortia roles, or managing sub‑grants for smaller groups.
- Long‑term community benefits: A stable local partner supports adaptation, livelihoods, restoration, and advocacy beyond single project cycles.

Ketumile Direng is responsible for mobilising resources and project management at Botswana’s National Development Bank. © NDB