Adaptation finance supports activities to build resilience to the impacts of climate change. The need for adaptation finance is particularly high in Sub-Saharan Africa and other Least Developed Countries (LDCs), and a number of countries are committed to financially supporting these actions under the UNFCCC.
According to Climate Funds Update, finance approved through climate funds for adaptation activities increased by 57 per cent from 2013 to 2014 from US$1.28 billion to US$2 billion. Between 2003 and late 2014, cumulative pledges to adaptation funds are over US$3 billion and these funds have approved over US$2 billion towards various activities. The multilateral adaptation funds that approved the largest volume of funding to date have been the Pilot Program for Climate Resilience (PPCR), of the World Bank’s Climate Investment Funds and the Least Developed Countries Fund (LDCF) administered by the Global Environmental Facility. Money has been spent on disaster prevention and preparedness, agriculture, coastal zones and water and sanitation and infrastructure.
In addition to finance from dedicated Funds, there is growing evidence of the substantial domestic efforts to combat climate change. Where little international climate finance is available, domestic adaptation spending plays a crucial role. National budget spending on climate change in Ethiopia is as much as US$400 million a year, for example, and in Nepal, domestic spending for adaptation accounted for 76 per cent of the total governmental budget allocated to climate initiatives over the five years reviewed in a Climate Public Expenditure and Institutional Review (8/2007-12/2011).
Understanding where the money goes from climate funds once it reaches the implementing institutions is challenging. While transparency is increasing, greater level, detail and timeliness of information is needed. The Adaptation Finance Accountability Initiative identifies key institutional actors and challenges to funds at sub-national level to identify examples of good practice in delivering adaptation projects.
Image credits: P. Casier for CGIAR | Flickr