The costs of adaptation to climate change in developing countries are substantial. Developed countries have committed to scale up support for adaptation in developing countries, particularly in LDCs and SIDS. They promised to double adaptation finance between 2014 and 2020 under a roadmap presented for COP 22. The largest source of approved funding for adaptation projects is currently the Pilot Program for Climate Resilience (PPCR) of the World Bank’s Climate Investment Funds. The Green Climate Fund (GCF) is increasingly becoming a major source of adaptation finance; set to devote 50% of its USD 10 billion initial resource mobilisation to adaptation, with half of that going to the SIDS, LDCs and African states (see CFF 11). The GCF approved the largest volume of adaptation finance this year, with USD 332 million for projects targeting adaptation. The amount of cumulative finance approved for adaptation from key climate funds tracked by CFU has grown to USD 4.4 billion in 2018. Developed countries’ contributions to mulitlateral funds supporting adaptation remain lower than those supporting mitigation; at a global level, adpatation remains underfunded. Directing adaptation funding to countries most vulnerable to the impacts of climate change as well as to the most vulnerable people and population groups within recipient countries remains an imperative, with grant financing continuing to play a major role.
This is a 2018 update of Climate Finance Fundamentals Brief #3.