Acknowledgements 2

Abbreviations 6

Executive Summary 7

CHAPTER I: INTRODUCTION

1.1. Purpose, Scope, and Methodology 16

Purpose and Audience 16

Scope 17

1.2. Caveats and Limitations 18

1.3. Report Structure 18

CHAPTER 2: UNDERSTANDING LTSs 19

2.1 What an LTS Is 20

2.2 Why Sound LTS Analytics Matter 20

2.3 Where the LTS Sits in Governance 20

Organizational Foundations 21

Strategic Planning and Risk Management

Public Financial Management 21

Subnational Governance and SOEs 22

Transparency, Accountability, and Stakeholder Engagement

2.4 LTS Implementation Considerations 22

CHAPTER 3: FORMULATING LTSs 25

3.1 Sequence 27

3.2 Timing 27

3.3 The Five-Stage LTS Process 27

Stage 1: Initiation 27

Stage 2: LTV and Scoping 29

Stage 3: Pathway Technical Elaboration

Stage 4: Finalization 35

Stage 5: Operationalization

CHAPTER 4: INSTITUTIONALIZING LTSs 40

4.1 Principle 1: Institutional Legitimacy 42

Why Principle 1 Matters 42

How to Apply Principle 1 42

Insights from World Bank LTS Engagements 47

Diagnostic Questions 48

4.2 Principle 2: National Alignment 49

Why Principle 2 Matters 49

How to Apply Principle 2 49

Insights from World Bank LTS Engagements 51

Diagnostic Questions 52

4.3 Principle 3: Participatory Coalitions 53

Why Principle 3 Matters 53

How to Apply Principle 3 53

Insights from World Bank LTS Engagements 56

Diagnostic Questions 58

4.4 Principle 4: Credible Resourcing 58

Why Principle 4 Matters 58

How to Apply Principle 4 59

Insights from World Bank LTS Engagements 64

Climate financing sources and use 64

Technical capacity to support LTS implementation

Diagnostic Questions 65

4.5 Principle 5: Adaptive Governance 65

Why Principle 5 Matters 65

How to Apply Principle 5 66

Insights from World Bank LTS Engagements

Diagnostic Questions 67

CHAPTER 5: CONCLUSION 68

Bibliography 70