Theme:

Climate Finance

Climate finance covers a broad range of thematic areas. Governance and institutional processes around access to finance are as much a part of climate finance as different technical elements around the quality and quantity of climate finance, including various types and sources of finance. 

To date, there is no universally agreed definition of climate finance though the Paris agreement provides some loose guidance on types of finance and recipients. Article 9 of the Paris Agreement states that developed country Parties should lead in mobilizing climate finance from a variety of sources, instruments and channels with special consideration paid to Parties particularly vulnerable to the adverse effects of climate change such as least developed countries and small island developing states. Article 9 also calls for achieving a balance between adaptation and mitigation.  

Despite the Paris framework, to date there remain significant gaps in providing climate funds to the most climate vulnerable. Notably, funding for adaptation has lagged significantly behind mitigation with only tiny amounts reaching the neediest countries and local actors at the frontier of climate change.   

Though COP26 saw global leaders committing to a shift towards locally led adaptation, the complexity of accessing adaptation finance, involving a range of actors, mechanisms and governance arrangements means that ultimately, local actors on the ground face a multitude of barriers in being empowered to lead climate action.  

This theme captures a wide array of issues and perspectives associated with access to climate finance, with the aim of sharing knowledge and experiences for improving access to climate finance for the most vulnerable.   

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Category:

Adaptation Financing on the Ground

Amid growing awareness of climate change's influence on Andean economic activities, microfinance sector lacks sufficient climate-focused microcredit for smallholder farming families.
Article

Innovation in the microfinance sector to drive climate adaptation for smallholder farming in Ecuador

Learn about how the Andes Resilientes project, in collaboration with the Ministry of Environment, Water, and Ecological Transition (MAATE), is spearheading a transformative initiative within the framework of the National Climate Financing Strategy (EFIC) to tailor financial products for the unique needs of climate-vulnerable agriculture. 

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people walk through a flooded street
Article

Operationalizing Finance for Loss and Damage: from Principles to Modalities

Explore this report providing information for crucial negotiations and discussions on loss and damage finance by exploring different options for how it can be operationalized.

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CDKN: Finance for resilience podcast logo
Article

CDKN: Finance for Resilience Podcast

Listen to 'Finance for Resilience', a podcast series created by the Climate & Development Knowledge Network (CDKN) which explores how financial solutions for climate change are developed, and highlights innovative solutions from practitioners and experts.

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a group of women in malawi
News

Malawi's Youth Perspective on COP26 and its Outcomes

Read about the expectations youths from Malawi had towards COP26 and their reactions to outcomes from the event.

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Fruit seller in Siem Reap, courtesy of Chris Ellinger via Flickr
Article

Guide to Strengthening Gender Integration in Climate Finance Projects

CDKN and WEDO's guide presents a framework of recommendations for strengthening gender integration in climate finance projects, with concrete examples and resources to show how it can be done.

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Young Cocoa Trees, Robert O’Sullivan
Case Study

Financing Smallholder Cocoa Rehabilitation in Ghana

This case-study presents a farm rehabilitation service delivery model for Smallholder Cocoa Rehabilitation in Ghana.

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Severe flooding in Thailand
Article

Financing from the Ground Up - Experiences in Adaptation Finance from Southeast Asia

Climate adaptation finance, a critical resource for developing countries, can sometimes be governed via national-level institutions that are disconnected from the contexts and needs of local people.

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Global recipients adaptation
Article

Climate finance: is it making a difference? A review of the effectiveness of multilateral climate funds

This report, for the first time, analyses a decade of contributions and spending to nine major international and two national funds set-up to tackle climate change.

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Article

Financing Inclusive Low-Carbon Resilient Development: The Role of the Alternative Energy Promotion Centre in Nepal

This report analyses the new financial delivery structures in Nepal that have been set up to channel low-carbon climate-resilient development finance to the poor, focusing on alternative energy.

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Article

Financing Inclusive Low-Carbon Development: The Role of Central Bank of Bangladesh and Infrastructure Development Company Ltd

How can we deliver climate finance to those who need it most? We examine the choices countries make in financing low-carbon resilient development, focusing on experiences in Bangladesh.

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Category:

Private Sector Adaptation Financing

How the private sector can play a role in financing climate change adaptation.

wind turbines in the ocean at sunset
Article

An Introduction to Green Bonds

Explore the basics of green bonds as a climate financing instrument through this introductory article. 

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financing transboundary water investments
Article

Financing transboundary water investments – from public good to shared interest

Published following the launch of the Blue Peace Index at World Water Week 2019, this thought piece considers the financing aspects of transboundary water resource management.

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mobilising private sector finance
Article

Guidebook: Mobilising private sector finance for climate change adaptation

The key objective of the guidebook is to facilitate preparation of adaptation project proposals and to provide guidance on alternate funding options, focusing on the private sector. 

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Water pump powered by solar cell at plantation
Article

The Roles of the Private Sector in Climate Change Adaptation - an Introduction

This introduction shows how the private sector can advance adaptation. Actors can adapt to climate change, finance climate adaptation of others and support others through products and services.

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Bottom-Up Innovation for Adaptation Financing
Article

Bottom-Up Innovation for Adaptation Financing – New Approaches for Financing Adaptation Challenges Developed Through Practitioner Labs

With regard to climate change adaptation, SMEs in emerging economies face significant financing challenges. Here, adelphi presents 6 innovative bottom-up approaches from India, Thailand and Uganda.

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Plugging The Climate Adaptation Gap With High Resilience Benefit Investments
Article

Plugging The Climate Adaptation Gap With High Resilience Benefit Investments

To demonstrate the value of resilience benefits to various stakeholders S&P Global Ratings considers that it is important to quantify those benefits based on a robust modeling framework.

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engaging the private sector in financing climate adaptation
Article

Engaging the private sector in financing adaptation to climate change: Learning from practice

The ACT learning brief presents a framework of five approaches that policymakers, practitioners and donors can use to motivate the private sector to invest in climate change adaptation.

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Millet crop - credit DFID
Article

Three key private finance initiatives for financing a 1.5°C target

Kamleshan Pillay, CDKN’s Climate Finance Lead, outlines three potentially game-changing initiatives to enhance private finance of climate action, in response to the release of the IPCC Special Report

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rice farmers Mozambique
Article

What roles could private actors play in agricultural adaptation in sub-Saharan Africa? Insights from publicly funded projects

This study examines proposals for 197 projects to determine the diversity of agricultural adaptation options available and to what extent private actors are involved with them in sub-Saharan Africa

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Tourism Industry Financing of Climate Change Adaptation
Article

Tourism Industry Financing of Climate Change Adaptation: Exploring the Potential in Small Island Developing States

The SIDS’ tourism sector is threatened by climate change and high adaptation costs. Through industry stakeholders, this study explores the potential of tourism to finance its own CCA.

 

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Rwanda Akanyaru Project
Article

Mobilizing private finance: Unlocking the potential of Rwanda’s businesses to drive climate change adaptation

This policy brief examines the prospects for mobilizing private climate finance in Rwanda, focusing mainly on adaptation, and highlights measures that could stimulate investment.

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Estimated private finance for adaptation
Article

Estimating Mobilized Private Finance for Adaptation: Exploring Data and Methods

The study develops, tests and evaluates methodologies for estimating private finance mobilized in developing countries by developed countries’ public finance interventions.

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SEI private finance
Article

When does private finance count as climate finance? Accounting for private contributions towards international pledges

This discussion brief examines different types of international private finance and asks questions about their suitability for being counted towards the Copenhagen commitment.

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farmer
Article

Private finance for adaptation in LDCs? Spelling out the options

This brief presents a comprehensive analytical framework for understanding private adaptation finance. 

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Category:

Directing Tracking and Monitoring Climate Finance

Tools and methods for how to direct, track and monitor climate finance.

Fishermen on Lake Kivu in Rwanda. Photo: Adis Dzebo / SEI
Article

A framework for mobilizing private finance and tracking the delivery of adaptation benefits

This paper presents a conceptual framework that allows users to assess a country’s practices for mobilizing private sector finance for adaptation.

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Adaptation portfolio
Article

Finance for the adaptation of ecosystems to climate change: a review of the Adaptation Fund portfolio

This paper is interested in how much adaptation practitioners and funders focus on how other species adapt to climate change.

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Steering International Adaptation Finance Towards the Local Level
Article

Steering International Adaptation Finance Towards the Local Level

In this paper, adelphi's team of experts analyses key challenges and potential solutions for channelling money from the international to the local level in order to improve adaptation finance.

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Ghana. Photographer: Ahsleigh Lovette
Article

Understanding and increasing finance for climate adaptation in developing countries

This report explores the current state of finance for climate adaptation and proposes practical, near term solutions to both fill in knowledge gaps and to increase investment.

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VRC Case Study Niger
Article

Addressing Climate Change Impacts in the Sahel Using Vulnerability Reduction Credits

This chapter summarizes the structure and utility of Vulnerability Reduction Credits and shows how VRCs are created and integrated into adaptations to heterogeneous climate risks. 

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Raised homes in Bangladesh, a climate adaptation project
Article

Can the Least Developed Countries Count on the Green Climate Fund?

The Green Climate Fund is a critical institution for the implementing of the Paris Agreement. Is it fulfilling its promisies and helping deliver successful adaptation outcomes in vulnerable nations?

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UNFCCC Executive Secretary Patricia Espinosa signs the COP23 hosting agreement with German State Secretary.
Article

Climate Finance Received - An Assessment of Biennial Update Reports

In their Biennial Update Report submissions to the UNFCCC, Non-Annex I Parties have encountered difficulty adhearing to UN reporting requirements and have used vastly different reporting approaches.

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Glacier in Chile. Curt Carnemark/World Bank, via Flickr
Article

Toward climate finance reporting systems in Latin America

This research brief calls for the development of robust reporting systems for climate finance in Latin America, through national capacity builidng and based on mutually-agreed priniciples.

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From Tracking to Action
Article

From Tracking to Action - Promoting Social Accountability in Adaptation Finance

This report looks at emerging evidence of civil society engagement and identifies steps that providers of finance, governments, and CSOs can undertake to close the adaptation accountability gap.

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ODI
Article

Climate Finance Thematic Briefing: Adaptation Finance

This briefing provides an overview of finance flows and major funds supporting adaptation in 2015 and the geographical distribution of these funds.

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Article

Climate finance: How are dedicated climate funds progressing towards impact? 2015 update to reported results

This short update summarises results reported in 2015 by 14 funds which have collectively approved more than $8.7 billion for climate change projects in developing countries. 

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Category:

Project Preparation and Finance Readiness

The articles provide advice and guidance on how to prepare climate finance projects.

Man in boat fishes in river
Article

The LEDS GP Resource guide for NDC finance

This guide presents a curated selection of high quality resources on a range of topics around finance for Nationally Determined Contributions (NDCs) and low emission development strategies (LEDS).

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Low-lying homes in Bangladesh
Article

Capacity building for climate change: Lessons from other regimes

Climate leaders must learn from existing work in other international regimes to ensure the effectiveness of capacity-building programs.

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Children playing on mangrove stump in Tibar Bay, Timor Leste. Photo by USAID Adapt Asia-Pacific
Article

USAID Climate Change Adaptation Project Preparation Facility for Asia and the Pacific

The USAID Adapt Asia-Pacific program shared information and best practices about climate fund requirements and helped governments build capacity to access climate change adaptation finance.

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Guide to Climate Change Adaptation Project Preparation
Article

Guide to Climate Change Adaptation Project Preparation

This guide aims to assist government and non-government agencies at all scales in preparing bankable climate change adaptation proposals to access various sources of financing. 

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Boy playing near a flooded area in Popua Village at the outskirts of Nuku'alofa, the Capital of Tonga. Photo credit: Asian Development Bank, via Flickr
Article

Quick Guide to Climate Change Adaptation Funds

This USAID Adapt Asia-Pacific Quick Guide is an easy to follow collection of 10 climate funds and initiatives available for financing adaptation activities in developing countries.

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Guidelines for Designing Bankable Adaptation Projects
Article

Guidelines for Designing Bankable Adaptation Projects

This paper presents a summary of the Project Appraisal Guidelines developed in collaboration with India’s National Bank for Agriculture and Rural Development (NABARD). 

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Woman paddling a boat in Kampong Phluk village in Siem Reap, Cambodia.  Photo credit: ADB, via Flickr
Article

The Exchange Series on Climate Financing

The APAN Exchange Series is a facilitated email information and knowledge exchange platform on climate financing operated and supported by USAID Adapt Asia-Pacific.

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Shortlisting Climate Change Adaptation Projects
Article

Shortlisting Climate Change Adaptation Projects

This document shares an example from USAID Adapt Asia-Pacific’s experience working with India’s NABARD to design a checklist for selecting projects to be financed by the Adaptation Fund.

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Understanding the Green Climate Fund
Article

Understanding the Green Climate Fund: Implications for the Evolving Architecture of Direct Access to Climate Finance

This paper describes the Green Climate Fund and outlines key considerations to be taken into account to enhance the readiness of NCFs to directly access international climate finance.

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An Assessment of Specialized International Funds with Available Resources for Climate Change Adaptation Projects in Asia and the Pacific
Article

An Assessment of Specialized International Funds with Available Resources for Climate Change Adaptation Projects in Asia and the Pacific

This paper presents an assessment of specialized international funds with available resources for climate change adaptation projects in Asia and the Pacific

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USAID Adapt Asia-Pacific Project Preparation Approach Paper
Article

USAID Adapt Asia-Pacific: Project Preparation Approach Paper

This initial approach paper of the USAID Adapt Asia-Pacific project highlights the variety of projects and readiness in each target country in Asia. 

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image from front page forum 1
Article

USAID Adapt Asia-Pacific Annual Meeting Proceedings

This article hosts the proceedings from the ADAPT Asia-Pacific Annual Forums, which aimed to support capacity building and technical assisstence on financing climate change adaptation

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Bankable projects CDKN
Article

Understanding ‘bankability’ and unlocking climate finance for climate compatible development

This paper focuses on understanding the concept of ‘bankability’ in support of the development of quality ‘bankable’ project proposals – to assist countries’ access to international climate finance.

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GCF project toolkit
Article

Green Climate Fund Proposal Toolkit

This toolkit was developed to assist you in understanding what makes a funding proposal bankable and successful when it is reviewed during a GCF board meeting.

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Category:

Governance of Climate Finance and Institutional Arrangements

Insights and research into how governance and institutional arrangements are used in climate finance.

aerial view of mangrove forest and ocean
Article

Climate-resilient Finance and Investment: Framing Paper

Learn about the current efforts to align finance with climate-resilient development, as well as possible ways forward for defining, measuring and mobilising adaptation-aligned finance in this OECD framing paper.

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A truck drives down a road in front of a windmill framed by blue sky and fields
Article

Landscape Assessment of State-Level Climate Financing Options

Learn about the financing aspects of clean energy projects in India with the help of substantial evidence and examples in this article based on a primary survey of financial institutions such as banks and non-banking financial institutions (NBFC’s).

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UNDP Somalia
Article

Climate Finance for Sustaining Peace: Making Climate Finance Work for Conflict-Affected and Fragile Contexts

This study by UNDP, the Climate Security Mechanism and the Nataij Group examines climate finance implemented under multilateral 'vertical funds' and discusses how to make this work more effectively in contexts affected by conflict and fragility.

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Fishermen and Sahelian goats by the Niger River
Article

Synthesis report: Exploring the conflict blind spots in climate adaptation finance

This report investigates climate change adaptation programmes in fragile and conflict-affected situations, how such programmes could be improved and how adaptation finance could be increased.

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children in kenya
Article

Decentralising climate finance: insights from Kenya and Ethiopia

This paper explores different mechanisms for delivering climate finance at the local level.

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 Climate-smart village in Honduras in Santa Rita, Copán
Article

Adaptation Governance and Green Climate Fund Readiness in Latin America and the Caribbean

Countries in Latin America and the Caribbean are utilizing the Green Climate Fund's Readiness Program in a variety of ways that demonstrate strong regional interest in good adaptation governance.

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 Country public financial management systems
Article

Defining Country Systems for Climate Change Adaptation Finance

This paper uses “country systems” to refer to the set of tangible systems, processes and tools that support Public Financial Management (PFM) and examine the various parts of the process.
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Communities in India are increasingly feeling the effects of drought and water shortages.
Article

Supporting National Climate Funds and Climate Public Expenditure and Institutional Review in Asia-Pacific

This brief describes how USAID Adapt Asia-Pacific has supported the management of National Climate Funds and Climate Public Expenditure and Institutional Review for regional governments.
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Photo: © Asian Development Bank
Article

The Adaptation Finance Gap Report 2016

This report focuses on finance, technology and knowledge gaps in climate change adaptation and ways to address them. It also explores the implications of failing to limit global carbon emissions.

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