Data-to-Deal: Component 2. Capacity: Developing Institutional Capacity – A Best Practice Brief

This best practice brief presents Component 2 of the Data-to-Deal (D2D) framework which addresses Capacity. This component focuses on strengthening national capacity to conduct robust and inclusive planning processes for energy and transport that unlock climate-aligned investment in low-and middle-income countries (LMICs). Many countries face persistent gaps in technical expertise, institutional coordination, and long-term continuity for planning. Component 2 comprises three sub-components: (i) Assessing needs for capacity strengthening, (ii) Implementing targeted capacity development programmes, and (iii) Sustaining the gains in institutional capacity. The brief recommends demand-driven, iterative approaches that embed capacity within national institutions, prioritise trust-building and knowledge exchange across national institutions, and align closely with country-specific needs. Drawing on available diagnostic tools and recent country experiences, the brief outlines how ministries and planning agencies can select appropriate modelling toolkits, adopt standardised data practices, and integrate training into institutional structures. By operationalising this approach, countries can create a strong institutional foundation from which to advance the technical tasks associated with investment planning and finance.