Over the past few years, there has been a rapid increase in new national institutions providing funding for climate change mitigation and adaptation activities. To date, more than 30 countries are in the process of establishing or putting into operation national funding entities dedicated to climate finance – or national climate funds. This discussion paper is based on lessons learned from GIZ’s work on the ground. It examines its experiences in carrying out capacity development measures and technical assistance to offer insight into the new generation of funding entities.