Discussion Paper
Financial Support to the Implementation of Adaptation Measures
Region/Country: Language:
English

Financial Support to the Implementation of Adaptation Measures

2011-11

One of the key functions of the Green Climate Fund (GCF) will be to provide financial support for countries adapting to the adverse impacts of climate change. Yet designing a mechanism that can manage the wide range of cross-national adaption needs will be challenging. This paper draws upon experiences with relevant funding mechanisms—the Adaptation Fund and the Climate Investment Funds/Pilot Program for Climate Resilience (CIF/PPCR) —to highlight issues central to structuring GCF capable of servicing those diverse needs. In particular, it focuses on 1) the support modality of these funds; 2) safeguard policies; and 3) treatment of additionality of adaptation impacts for the support provided. The paper finds that paper argues negotiators should aim for a mechanism that can support both project and programs (as well as the capacity building needed to formulate both projects and programs); balance resource allocation between direct and indirect access; secure a regional balance in project distribution with special consideration for the most vulnerable countries; offer flexibility in the mode of finance (including a balance between grants and loans); and ensure transparency in the decision making process. The paper also suggests that GCF could learn valuable lessons not only from the two funding mechanism but the Global Environmental Facility in creating safeguard policies for adaptation funding. Last but not least, the paper highlights an area where there are likely to be the greatest challenges moving forward, determining the additionality of adaptation finance

(Hayama, Japan)