Scaling Up Adaptation Finance In Developing Countries

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.

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.

This report explores evidence-based action areas to increase and accelerate the mobilisation of private finance for climate action in developing countries, and the role of international public finance providers in doing so. It draws on best-available data to provide disaggregated analysis of the sectoral, geographic and other features of private finance mobilised by public climate finance and presents key economy-wide, sector-specific, and institutional challenges to private finance mobilisation. 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 related to mobilising private finance for climate action in developing countries more broadly.

This report presents aggregate trends of annual climate finance provided and mobilised by developed countries for developing countries for the period 2013-2021. It includes breakdowns by climate theme, sector, financial instrument and recipient country grouping for the period 2016-2021. The report also provides key recommendations for international providers to increase financing towards adaptation and more effectively mobilise private finance for climate action, which are both important policy priorities and current bottlenecks. The recommendations in this report draw from two OECD publications on scaling up private climate finance and adaptation finance.

This report explores evidence-based action areas to increase and accelerate the mobilisation of private finance for climate action in developing countries, and the role of international public finance providers in doing so.

This book examines development aid for climate change adaptation. Increasing amounts of aid are used to help developing countries adapt to climate change. The authors seek to discover how this aid is distributed and what constitutes the patterns of adaptation-aid giving. Does it help vulnerable countries, as donors promise, or does it help donors achieve economic and political gains? Set against the backdrop of international climate change negotiations and the aid allocation literature, Betzold and Weiler’s empirical analysis proceeds in three steps: firstly they assess adaptation aid as reported by the OECD, then statistically examine patterns in adaptation aid allocation, and finally qualitatively investigate adaptation aid in three large climate donors: Germany, Sweden and the United Kingdom. With its mixed-method research design and comprehensive data, this work provides a unique, state-of-the-art analysis of adaptation aid as a new stream of development aid.

There is widespread recognition that climate finance needs to be scaled up from its current levels. However, there is no clear view on how developed countries can efficiently and effectively mobilise further climate finance to meet the needs of developing countries. Developed countries have committed to mobilise USD 100 bn per year of climate finance for developing countries by 2020 from a variety of sources. These include both public and private finance, thus the private sector is likely to play a significant role in the mobilisation of climate finance to meet this commitment. This paper explores how scale-up and replication of effective climate finance interventions efficiently mobilise private climate finance. The interventions examined in the paper have already been, or are being, scaled up or replicated. Scaling-up and replication of such climate finance interventions could be an efficient way to increase the private sector's interest in mobilisation of climate finance, and thus to make progress towards the USD 100 bn per year goal by 2020. The paper draws lessons from selected mitigation and available adaptation case studies at project- and programme-levels as well as from experience with international climate funds. The paper examines three key aspects needed to scale up and replicate climate finance. The first is the institutional structures and decision-making framework of the climate finance source, its aims, the scale at which it operates and how barriers to scaling-up and replication have been addressed. Second, the paper explores how demonstrating effective low-carbon, climate-resilient technologies and systems can facilitate scale-up and replication. Third, the paper discusses the influence of policies to enhance domestic enabling environments for scaling-up and replication.

Significant investments are needed to support the global transition to a low-carbon, climate resilient future. Current finance flows fall short of global financing needs, and massive scaling up is needed to unlock additional financial resources and foster a sustainable investment pathway. Overcoming barriers to private sector investments is critical, and international climate finance can play a catalytic role in this regard. National development banks (NDBs) have a unique role in this context, both complementing and catalyzing private sector players. This publication discusses the unique role that NDBs could play in scaling up private financing for climate change mitigation projects through the intermediation of international and national public climate finance in their respective local credit markets and the conditions that would be needed for them to be most effective. It draws from experiences in international climate finance and best practices, processes, and products of NDBs within the Latin American and Caribbean region.

​While significant attention has been devoted to achieving Sustainable Development Goal 13 (SDG 13) and scaling up climate finance for developing countries, the adverse impacts of funded projects on local communities remains inadequately explored by both academics and policymakers. Mobilizing climate finance on an unprecedented scale is undeniably vital for the success of developing countries’ climate policies. However, these initiatives often give rise to adverse consequences for individuals in these countries, leading to displacements, exacerbating food insecurity, or even triggering conflicts over resources. This book examines the extent to which the climate funds established for achieving SDG 13 are adequate for addressing climate change impacts in developing countries. Yet, its analysis transcends the mere evaluation of the sufficiency or efficacy of these efforts found in much of the existing literature. Beyond the scope of quantifiable success, the book delves into the root causes of the adverse impacts that these funds can have on local communities and offers tailored recommendations to realize the noble aspirations of SDG 13, all without implying that the individuals who should benefit from climate finance are the ones who pay in the end.

This report examines six mechanisms that can be used to scale-up financing for biodiversity conservation and sustainable use and to help meet the 2011-20 Aichi Biodiversity Targets.