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News / Comment

NEWS / New guidance on funding National Adaptation Plans
Category: Government & Policy, International Development

Image: Photo by Dinis Bazgutdinov on Unsplash

By Caroline Fouvet

During the 2010 COP in Cancun, Mexico, Parties established a process to enable developing countries to formulate and implement National Adaptation Plans (NAPs). These are meant to reduce their vulnerability to climate change impacts and integrate adaptation into national development strategies. As most countries’ Nationally Determined Contributions (NDCs) entail an adaptation component, NAPs are a concrete way to implement NDCs and fulfil their commitments under the Paris Agreement.

Ensuring efficient NAP processes requires adequate funding. The recent publication Financing National Adaptation Plan (NAP) Processes by the International Institute for Sustainable Development (IISD) and the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ; German development agency) is meant to provide guidance on how to finance the entire process from its initiation until the monitoring and evaluation phase.

This publication provides information on the finance needed throughout the NAP process, helps to identify funding sources and gives suggestions on how to increase the likelihood of securing NAP funding.

Operating and investment costs are the main expenditures associated with the development and implementation phases of NAPs, the latter having the highest funding needs. To cover these, finance can be channelled from domestic or international sources and from public or private investors. The NAP publication maps out which funding source can be useful along the whole process. For instance, domestic public finance can support both the development and implementation phases, while private sector entities can be required during the implementation phase to invest in new business opportunities that are in line with adaptation.

Finally, securing NAP funding can be achieved by identifying finance gaps before starting the NAP process. Countries should then determine which financing sources and instruments can be considered to fund the NAP process, before assessing the required steps to increase their chance of receiving such funding. Policy reforms, capacity building and stakeholder engagement are among the actions that can be necessary.

Acclimatise already took part in discussions around national adaptation planning in collaboration with GIZ and supports countries working on developing their NAP processes.

You can read the full publication by clicking here.