Financing Climate Change Adaptation in Transboundary Basins

9 Financing Climate Change Adaptation in Transboundary Basins Chapter 2 Accessing Finance for Transboundary Adaptation and Climate Resilience Initiatives T he costs of adapting to climate change and building resilience increase annuallywith the onset of climate change. According to The Adaptation Gap Report (UNEP 2017), the cost of adapting to climate change in developing countries is estimated to reach between $280 billion and $500 billion per year by 2050, a figure that is four to five times greater than previous estimates. Availability of financing for climate change is increasing globally, yet access to funds and implementation is not simple, even for individual countries, and demand exceeds both current and projected availability. Resources for climate change responses are available through climate funds, multilateral development banks, and development cooperation partners. While developed countries have mobilized significant levels of financing to support climate action in accordance with their obligations under the United Nations Framework Convention on Climate Change (UNFCCC), current financing falls far short of what is needed to protect populations and adequately support adap- tation efforts. Developing countries will need to be more resourceful in accessing existing funds, leveraging new finance, and working strategically with national and regional development plans, bud- gets, and resources to meet increasing needs. While climate finance is available to countries for both mitigation and adaptation activities, the transboundary river basin context often requires tailored approaches that do not necessarily fit the most common approaches to accessing finance. Existing financing sources have distinct procedures and project cycles, and many do not envisage financing projects that cross international borders. Nevertheless, the benefits of transboundary river basin adaptation projects are numerous and require persistence from both donors and project pro- ponents to find solutions and ensure these projects receive support. First, it is critical to understand what can make a transboundary adaptation project “bankable.” What will ensure that the project receives financing and is successful in its implementation? Developing bankable projects for the transboundary context requires understanding the available sources. Policy makers and other stakeholders must also address project requirements, articulation and atten- tion of basin-specific risks, political awareness, and consideration of ownership and implementation responsibilities throughout the project cycle. Examples of both practical and innovative approaches to access and deliver financing within a transboundary con- text are available. RBOs should remain optimistic in the changing financing landscape that despite inherent challenges, they offer an efficient and effective way of delivering climate adaptation results. An institution’s administrative rules and procedures may preclude or disfavor multicountry projects, or additional adminis- trative burdens of such projects may discourage institu- tions from considering such projects. However, given the broader public good benefits, RBOs or riparian countries acting jointly should be able to advocate convincingly about the benefits of transboundary approaches to overcome these hurdles. When financing directly to the RBO is not possible, or when financing sources fund only single country projects, creative solu- tions are possible. For instance, the RBO can provide administrative support, implementation coordination, or fulfill similar roles, while the financing is channeled through individual riparian countries as implementers. 2.1 Global Cooperation and Climate Finance A growing architecture of global cooperation for climate change ensures that financial support is available to

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