Effective financing of climate adaptation measures

Stormy waters

In the context of the Paris Agreement from 2015, countries have set themselves ambitious national targets for climate change mitigation and adaptation that require significant financial resources. Given the direct, serious impacts of climate change on developing countries, they tend to focus on adaption measures. However, the adaptation objectives in the contributions put forward by countries for the implementation of the Paris Agreement (nationally determined contributions, NDCs) often lack detail and are thus difficult to finance and implement. In addition, there is also a lack of convincing business models for adaptation finance to comprehensively engage the private sector, which is paramount to raise the required resources . Therefore, there is a need to further explore how the impact of available public resources can be maximised and how more private capital can be mobilised, particularly in developing countries, in support of adaptation activities.

With financial support from Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) on behalf of the German Federal Ministry of the Environment, Nature Conservation, Building and Nuclear Safety (BMUB), adelphi analyses the ongoing debate and existing activities on climate adaptation finance, translates findings into policy recommendation, and develops action-oriented knowledge products and innovative capacity building and training formats. In doing so, adelphi collaborates with the Climate Policy Initiative (CPI), which based on the latest research prepares a high-level study focused on adaptation finance.

For its research, advisory services, and implementation support on climate adaptation finance, adelphi considers a broad range of thematic aspects that include both public and private finance: What are current trends and challenges? How can greater funds be mobilised, what financing instruments are most suitable, and what innovative financing strategies should be developed? What incentives and enabling environments are required and how can access to available funds be maximised? Furthermore, adelphi looks at transparency and tracking of climate adaptation finance flows, institutional frameworks, relevant national and international processes, as well as synergies between mitigation and adaptation efforts, and develops approaches and tools to assist partner countries in the development and implementation of respective measures.