New Publication: “Understanding and Increasing Finance for Climate Adaptation in Developing Countries”

The study by the Climate Policy Initiative (CPI) and adelphi 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. While many of the suggestions can also be applied in developed countries, which often face similar challenges in measuring and deploying adaptation finance, the focus of the report and selected examples highlight the role for developing country national governments and stakeholders in supporting increased knowledge and investment in adaptation. Latter comprise development finance institutions, local governments, and civil society organizations including academic institutions.

Key takeaways:

  • Despite the significant climate risks at hand, investment in the sector has not taken off, with just USD 22 billion of tracked global investment to address climate change in 2015 and 2016 going towards adaptation activities.
  • Increasing investment in climate resilience will require increasing the ability of organisations to identify and evaluate climate risks, increase their awareness of resilient business models, implement climate risk reduction projects and policies, and harness the business opportunities deriving from them. 
  • However, especially in developing countries, a set of barriers prevents or slows down the adoption of adaptation practices, services, and technologies at the scale that is needed. These include context, business model, and internal capacity barriers.
  • Finance ministries in developing countries could analyse the threat that climate risks might pose to their sovereign debt, and incorporate considerations regarding their mitigation as part of their strategy to ensure financial sustainability.
  • Developing country governments will need to support a multitude of efforts to meet their adaptation goals. These include efforts that help increase demand for climate adaptation products and services that measure, reduce, and/or transfer climate risks; increase supply of these products in local markets; and de-risk adaptation investments using different policy and financial tools. The interventions should seek to address specific, identified barriers to investment in adaptation by both the public and private sectors.

Please find the complete study here.

New Policy Brief: Improving Nutrition Outcomes in Food Systems and their Benefits to Climate Action

Integrating nutrition into climate change actions and climate change considerations into nutrition interventions opens opportunities to achieve several development goals and produces multiple co-benefits. Enabling wide access to healthy and nutritious food that is regionally produced, benefits rural producers and urban consumers, reduces greenhouse gas emissions along the value chains and makes the entire food system more resilient to climate change. Set in the right framework, it is a development intervention that has both adaptation and mitigation benefits. This new GIZ policy brief presents the development challenges posed by climate change and malnutrition, links them together and delivers key messages regarding climate change and nutrition outcomes. Recommendations are made on how to promote these interlinkages for development cooperation across various sectors.

Key messages:

  • Policy makers should aim to highlight the potential for nutrition interventions in climate change using a landscape approach, along with other win-win interventions on the rural-urban spectrum such as climate-smart agriculture production (soil carbon), clean energy and resilient cities.
  • The NDC Partnership can be used as a platform to support the UNFCCC Parties in elaborating their agriculture climate sector commitments and channel guidelines on linking nutrition and climate action.
  • More systematically undertaken climate risk and vulnerability assessments could help better align nutrition projects with a long term planning framework based on climate risk management. Projects could estimate positive/negative adaptation and mitigation outcomes of nutrition interventions, comparing traditional nutrition projects with ones that include climate risk and vulnerability assessments as well as mitigation considerations.
  • Training materials on food and nutrition security for national partners do exist and could be used in future projects targeted at the land use sector.
  • Over-nutrition is becoming a topic of concern in international projects, but is not taken up yet in project planning, design, implementation, and monitoring and evaluation of results. All forms of malnutrition, including their implications for climate change adaptation and mitigation outcomes, should be taken into account in future project design.

Access the Policy Brief here.