Scaling Up Adaptation Finance in Developing Countries
Challenges and Opportunities for International Providers
This report analyses current trends of adaptation finance provided and mobilised by developed countries for developing countries. It explores potential action areas for international providers to scale up funding for climate change adaptation, including by unlocking the potential of the private sector. The analysis is anchored in the context of the USD 100 billion climate finance goal, initially set for 2020 and extended to 2025, while also providing insights to the broader and longer-term objective of supporting developing countries’ ability to adapt to the adverse impacts of climate change.
Trends of climate finance for adaptation in developing countries
This chapter reviews overall trends in adaptation finance flows between 2016 and 2021, including differences across country income groups in volume, delivery channels and instruments, setting the stage for discussions in Chapters 3 and 4 of challenges and opportunities to scale up adaptation finance. International public climate finance for adaptation from developed countries almost tripled over 2016-21, mainly driven by multilateral institutions’ increased focus on adaptation. Low-income and least developed countries, however, received the least public adaptation finance overall in absolute terms. Despite the strong context-specific nature of adaptation, little of the finance provided is delivered through local organisations. The analysis in this chapter suggests there is room to scale up adaptation finance, improve its accessibility and effectiveness, including towards mobilising private finance.
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