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Scaling Up Adaptation Finance in Developing Countries

Challenges and Opportunities for International Providers

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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.

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Action areas for scaling up current finance sources and unlocking additional finance for adaptation

Building on the data analysis presented in Chapter 2, case studies and interviews, as well as the challenges in financing adaptation analysed in Chapter 3, this chapter identifies possible action areas through which international climate finance providers can increase the volume, accessibility, and effectiveness of finance for adaptation in developing countries. The five recommended action areas are: i) assessing the consistency of forward spending plans with the call to collectively double climate finance for adaptation by 2025; ii) supporting developing countries’ efforts to strengthen their capacities, policies and enabling environment for finance for adaptation; iii) strengthening development practices and systems to ensure efficient delivery of adaptation finance; iv) deploying public and blended finance instruments strategically to mobilise private finance for adaptation; and v) exploring and tapping into alternative financing sources and mobilisation instruments for adaptation.

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