Financing Climate Change Adaptation in Transboundary Basins

36 Financing Climate Change Adaptation in Transboundary Basins projects in which the benefits include both carbon absorption and resilience building through land man- agement, watershed protection, and improved liveli- hoods; or dam installation for energy generation when paired with improved irrigation and flow regulation to prevent floods and droughts. Highlighting multiple benefits can give greater access to funds and increase budget availability. Other attractive combinations for financiers are projects that have both adaptation bene- fits and achieve other sustainable development goals as co-benefits to the project. For example, reinforcing water distribution facility resilience toward climate change has both adaptation benefits and achieves SDG 6. At the same time, such projects may be more complex at implementation, monitoring, and reporting stages and can pose additional risks. Cluster projects within the basin, coordinating project proposals . Clustering two or more smaller geographi- cally related or thematic projects under one larger project proposal have numerous advantages and bene- fits. A cluster that shares geographic or thematic char- acteristics can be simpler to manage from a financier’s perspective than many smaller projects. Some inves- tors have stated or unstated project budget minimums that preclude smaller projects from receiving funding. A group will surpass such as threshold and become more attractive. Clustered projects may be more effi- cient to implement, because they can share project management, technical resources, and other resources that allow for wider implementation withmore limited funding. However, clustering can add complexity and challenges at all stages of the funding process. Whether or not to cluster projects is a decision to make early in the project cycle or in consultation with potential financiers. River basin management plans or invest- ment strategies can determine the potential for clus- tering. It is usually the responsibility of the national representative appointed to liaise with the RBO to review, understand, and coordinate national policies and strategies with those of the basin. Innovate, advocate, and be flexible . Climate finance is a relatively new field of global financing, and as such many current rules and instruments are still evolving, lack concrete experiences, and, therefore, offer oppor- tunities for the beneficiaries to shape the rules and procedures. Knowing the strengths and weaknesses of working within a transboundary context will allow project proponents to lobby effectively for added ben- efits, while managing risks. New funding sources may have flexibility if they can be convinced that funds will have a greater impact in a transboundary project than a single country one. Multicountry projects theo- retically have more advocates because each govern- ment and the RBO can lobby in support of them. It is important to be flexible and strategic, however, when the rules may not allow for a transboundary project and see how funds might be accessed for a single country that can then support the overall basin adap- tation program, decreasing its financing needs so oth- ers in the basin might access limited national or regional finance. Share experiences and learn from others . Transboundary climate change finance is still a very new field. It is therefore crucial to share experience and learn from other basins. Events such as the UNFCCC Conference of the Parties (COP), World Water Week, and the World Water Forum—as well as those taking place within the context of the UNECE/International Network of Basin Organizations (UNECE/INBO) global network of basins working on climate change adaptation—provide useful forums in which to meet and share experience. Additionally, the GEF knowledge management and lessons sharing mechanism for international waters, GEF IW: LEARN , 3 which is more than 18 years old, offers considerable experience and knowledge on cli- mate finance, including in the transboundary context. Notes 1. See the UNFCC website, https://unfccc.int/process/transparency​ -and-reporting/reporting-and-review-under-the-convention/national​ -communications-non-annex-i-parties/submitted​-national ​ -communications-from-non-annex-i-parties. 2. See the IPCC website, https://www.ipcc.ch/publications_and_data​ /publications_and_data_reports.shtml. 3. See the GEF website, https://iwlearn.net/.