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.
Challenges in financing adaptation in developing countries
This chapter explores barriers to scaling up and mobilising further adaptation finance. These relate to economic and financial conditions, knowledge and capacity gaps, and institutional and governance arrangements. Developing countries’ financial, technical, and institutional constraints hinder both their access to international public finance and their ability to attract complementary private investment for adaptation activities. Challenges include data and knowledge gaps that hinder the ability to identify, develop and prepare potential climate adaptation projects, as well as the fragmented adaptation finance architecture and difficulties to access relevant sources of finance.
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