Zanzibar is in the process of setting up a climate change financing mechanism; it has no existing finance allocations, economic and financial instruments or finance planning system targeted at climate change. The country absorbs around US$500,000 in climate financing per year, while demand exceeds US$2 million each year. The current lack of institutional arrangements and planning systems means the approach to climate change financing is project by project and fragmented. To set Zanzibar on a green economy development pathway we recommend the government allocates specific resources to climate change priority activities, diversifies its sources of finance and creates the necessary institutional arrangements and financial planning systems. This would enable the country to absorb and disburse more climate finance.