Climate vulnerable countries are unable to access finance proportionate to level of need

Climate vulnerable countries are unable to access finance proportionate to level of need

By Will Bugler

study by the Stockholm Environment Institute (SEI) titled, ‘Climate Change Adaptation Finance: Are the Most Vulnerable Nations Prioritized?’ warns that “the allocation of adaptation finance is not consistently aligned with the sentiment of the Paris Agreement.”

The findings demonstrate that:

  • The most vulnerable nations are the least likely to be selected as finance recipients by both bilateral and multilateral donors;
  • Multilateral donors are found to allocate more adaptation finance to SIDS, yet they are not observed to prioritize vulnerable nations in the selection stage;
  • Multilateral donors are less orientated towards recipient need than their bilateral counterparts; and
  • Countries that are most vulnerable to climate change receive smaller allocations of adaptation finance from bilateral donors than their less vulnerable counterparts.

The paper finds that bilateral donors allocate more adaptation finance to recipients with: a higher level of need, determined by gross domestic product (GDP) per capita; more strategic importance, for example with whom they share a larger amount of bilateral trade; and higher levels of good governance, where aid is presumed to be more effective.

Multilateral donors, the authors note, prioritize well-governed nations. In spite of targeting groups vulnerable to climate change, multilateral donors do not prioritize the most vulnerable within those groups. The study concludes that there are barriers that limit the ability of the most climate vulnerable countries to access a share of adaptation finance proportionate to their level of need.

Download the study here.

Cover photo by Sabin Basnet on Unsplash.

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