Mainstreaming, accessing and institutionalising finance for climate change adaptation

The cost of adapting to climate change in developing countries could rise to between US$280 and US$500 billion per year by 2050 (UNEP, 2016). Moreover, adaptation costs are likely to increase, even if the world succeeds in limiting the global temperature rise to well below 2°C above preindustrial levels by 2100 (ibid.). Past assessments seem to have substantially underestimated adaptation costs in developing countries, owing to the omission of some sectors, only partial coverage of others and unforeseen costs from maladaptation (Parry et al., 2009). What further leads to lower cost estimates is the fact that much of the literature on adaptation costs focuses on planned public adaptation, overlooking autonomous and private adaptation, which—if included—could raise cost estimates significantly (UNEP, 2016). Action on Climate Today (ACT), a UK Aid-funded programme focused on climate-proofing growth in five South Asian countries, responds to these challenges through its focus on mainstreaming climate change across budgets and helping government access new finance, while strengthening institutions to take action on both. ACT has utilised its financing frameworks as a mechanism for 1) raising government awareness of adaptation needs; 2) helping governments identify key priority sectors or actions where investment is needed; 3) mobilising finance from development budgets and assessing the adequacy of effort; and 4) reporting on adaptation-relevant expenditure, thereby adding to accountability and transparency. This paper reviews the current state of practice and debates related to the mainstreaming of adaptation finance and synthesises experience and key lessons from the ACT programme that may be of relevance to practitioners and governments working to mobilise financing for climate-resilient growth and development.

Author:	Giles Álvarez, Laura;Bisht, Harshita;Resch, Elisabeth
Language:	English
Pubished By:	Action on Climate Today
Pubished date:	August 2018