Financing Climate Change Adaptation in Transboundary Basins

10 Financing Climate Change Adaptation in Transboundary Basins developing countries. (See figure 2.1.) Accessing and effectively using these funds pose challenges, how- ever, due to the multiplicity of funds and procedures as well as the readiness and absorption capacity of those in need. Due to needs and demands far exceed- ing available finance, decision makers must find effi- cient, cost-effective approaches that increase the impact and sustainability of funding. International cooperation for climate change covers only a portion of the financing requirements for building resilience. Countries will therefore need to access additional con- cessional and private financing that may expand beyond the strict bounds of climate funding to cover their development needs. Climate finance is intended to support either activities that reduce greenhouse gas emissions (mitigation) or strategies and actions that help prevent and respond to the impact of climate change (adaptation). Climate finance covers studies, project preparation grants, activities that enable implementation, small- to large- scale investments, technology development and trans- fer, capacity building, procurement, mitigation or adaptation efforts and their means of implementation , FIGURE 2.1. Global Climate Finance Architecture Sources: Adapted and simplified based on ODI/HBS 2016, Buchner et al. 2017, and WRI, https://www.wri.org/resources/charts-graphs/global-architecture​ -climate-finance. Note: ADB = Asian Development Bank; AfDB = African Development Bank; FIP = Forest Investment Program; GCF = Green Climate Fund; GEF = Global Environment Facility; IADB = Inter-American Development Bank; IDB = Islamic Development Bank; IE = implementing entity; LDCF = Least Developed Countries Fund; MDB = multilateral development bank; NGO = nongovernmental organization; NIE = national implementing entity; ODA = overseas development assistance; PPCR = Pilot Program for Climate Resilience; PMR = Partnership for Market Readiness; PPP = public-private partnership; RBO = river basin organization; RIE = regional implementing entity; SCCF = Special Climate Change Fund; SREP = Scaling Up Renewable Energy Program for Low Income Countries; UNDP = United Nations Development Programme; UNEP = United Nations Environment Programme; UNFCC = United Nations Framework Convention on Climate Change. ODA Bilateral agencies Multilateral climate funds (eg. CIFs, Biocarbon fund, PMR, FIP, SREP, PPCR, etc) • GEF • GCF • Adaptation fund • SCCF/LDCF NGOs Various Treasury National Private Sector National climate funds National budgets Non-UNFCCC funds UNFCCC funds Private funds/Foundations markets/Financial institutions Capital markets private investment Foreign direct investment Carbon markets Insurance Commercial financial institutions Other sources CDM Levy Other Philanthropy Risk-pooling mechanisms Developed countries Bilateral cooperation Multilateral cooperation Grants Loans Developing countries National financing National investments Borrowing Co-financing • MDBs (World Bank, ADB, IADB, AfDB, IDB, etc.) • UN Agencies (UNEP, UNDP, etc.) • Regional implementing agencies (e.g. RBOs) • National Implementing Entities (NIEs) • Multilateral IEs • Regional IEs • Communities • Individuals • National private companies • Multinational companies • Government • NGO/institutions and organizations • Etc. • National ministries • Regional govt./bodies • Local govt. • NGOs • NIEs/RBOs/RIEs • Private sector or PPPs Developing country funding Official development assistance “New and additional” climate finance Private sector investment Public finance Private finance/cooperation and other Other finance Source Fund Implementing agency