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Costs and Finance

Global estimates of the potential costs of adapting to climate change have suggested widely varying amounts. Attention has now turned to the methods, mechanisms and delivery channels to successfully finance adaptation activities.

Both of these topics, at the global, national and local level, are included below. Click on "More..." or the image to access the document.

Close to home: subnational strategies for climate compatible development

Type: Working paper

Authors: Barbara Anton, Ali Cambray, Mairi Dupar and Astrid Westerlind-Wigstroem; With Elizabeth Gogoi

Publishers: CDKN, ICLEI

Date: April 2014

The paper outlines successful strategies for climate resilience and low carbon development that communities and leaders have pursued at the subnational level. The contents will be discussed at a special session at Resilient Cities 2014 on Thursday, 29 May, 2014. More...

Investing in Resilience:
Ensuring a Disaster-Resistant Future

Type: Report

Publisher: Asian Development Bank (ADB)

Date: January 2013

This report offers an approach and ideas for reflection, inviting readers to consider how we can ensure that the actions that we know are required to strengthen resilience are actually taken. It is primarily aimed at investors in the public sphere, namely governments and their development partners. The report intentionally applies a loose definition of investment and investors, looking well beyond financial outlays on physical infrastructure. More...

Costs and Benefits of Climate Change Adaptation Measures - Evaluation of 28 Adaptation Measures Used in Germany

Type: Guidelines

Author: Jenny Tröltzsch, Benjamin Görlach, Helen Lückge, Martin Peter, Christian Sartorius

Publisher: Umweltbundesamt (UBA)

Date: June 2012

 Increasing frequency of heat waves, floods, and heavy rains in Germany are likely to cause immense economic damage. So far it has been difficult to systematically evaluate the costs and benefits of counteractive measures. The new guidelines of the Federal Environmental Agency (UBA) now offer municipalities guidance to assess what adaptation to climate change costs in their specific situation. More...

Financing the Resilient City: A demand-driven approach to development, disaster risk reduction and climate adaptation

Type: White Paper and ICLEI Global Report 

Author: Jeb Brugmann, The Next Practice Ltd

Publisher: ICLEI- Local Governments for Sustainability

Date: June 2011 (launched at Resilient Cities Congress 2011)

The paper assesses the possibility of an inversion of climate finance, and how to match local demand for resilience with the supply of finance. It analyses the conditions required to shift the focus from single affected pieces of infrastructure, to an integrated focus on overall risks, development conditions and local area performance. More...

Cities in a post-2012 climate policy framework

Type: Global Report

Author: ICLEI- Local Governments for Sustainability

Date: 2010

This global study seeks to bridge the global-local debate over the financing of climate mitigation and adaptation action. Through 38 interviews with city decision makers, international climate and urban experts, and business representatives, it seeks to identify the roles and opportunities of cities in a post-2012 climate framework. More...

Climate Finance Fundamentals: Adaptation Finance

Type: Briefing Sheet

Author: Alice Caravani, Neil Bird, Liane Schalatek

Publisher: Heinrich Boll Foundation

Date: December 2010

Part of a series of basic introductions to the emerging climate finance situation: focusing on estimates of financing needs, current funding instruments and their relationship with ODA. More...

Report of the Secretary-General’s  High-level Advisory Group on Climate Change Financing

Type: Report

Author: UN High Level Advisory Group on Climate Change Financing

Date: 5 November 2010

Formed in February 2010, the Group focused on the task of determining the way forward to mobilize $100bn per year by 2020 for climate mitigation and adaptation. Members included heads of state, ministers and International agency representatives. Disagreements among the members existed, and it concluded that many sources of funding would be required, with grants or concessionary loans most appropriate for adaptation in low-income countries. More...

Financial Architecture: The Need for an Improved Climate Finance System

Type: Briefing

Author: Project Catalyst

Date: August 2010

Project Catalyst is an initiative of the Climate Works Foundation and the European Climate Foundation. Here it outlines the global system required to mobilize and deliver climate finance effectively. More...

Climate Change: the costs of inaction and the costs of adaptation

Type: Report

Author: European Environment Agency

Publisher: Office for Official Publications of the European Communities

Date: December 2007

This report reviews methodology used in assessing the costs associated with inaction and adaptation to climate change. More...

Economic Aspects of Adaptation to Climate Change: Costs, Benefits and Policy Guidance

Type: Report

Publisher: OECD

Date: May 2008

This report provides an assessment of adaptation costs and benefits in climate sensitive sectors, at both national and global levels.  Moving beyond cost estimation, the report explores the risks and potential benefits of insurance and risk sharing, environmental markets and pricing, and public private partnerships - that can be used to motivate adaptation actions. More...

Economic Adaptation to climate change: integrated assessment modelling of adaptation costs and benefits

Type: Report

Authors: Kelly de Bruin, Rob Dellink, Shardul Agrawala

Publisher: OECD

Date: March 2009

This report informs the balance of investments between mitigation and adaptation and seeks to address the imbalance of adaptation within current global Integrated Assessment Models. More...

The Economics of Adaptation to Climate Change New Methods and Estimates

Type: Report
Author: World Bank
Date: December 2009
Place: Washington D.C.

The global report attempts to establish a workable definition of adaptation costs, analyzing major economic sectors by country and considering the implications of more frequent extreme weather events. More...

Assessing the costs of climate change: a Review of the UNFCCC and other recent estimates

Type: Report

Authors: Martin Parry, Nigel Arnell, Pam Berry, David Dodman, Samuel Fankhauser, Chris Hope, Sari Kovats, Robert Nicholls, David Satterwaite, Richard Tiffin, Tim Wheeler

Publisher: IIED

Year: August 2009

This report provides a critical analysis of UNFCCC estimates regarding adaptation, outlining the omission of key sectors such as energy, manufacturing, retailing and mining, and revealing key findings in new estimates related to water, health, infrastructure and coastal zones. More...

Investment and Financial Flows to address climate change

Type: Report

Publisher: UNFCCC

Date: 2008

This report attempts to identify the financial investments and flows from major sources, necessary in 2030 to address mitigation and adaptation needs in developing country contexts. More...

New Finance for climate change and the environment

Type: Report

Authors: G Porter, N Bird, N Kaur, L Peskett

Publisher: Heinrich Boell Foundation and WWF

Date: 2009

This report attempts to clarify  a number of issues related to north-south relations, including the common but differentiated responsibilities of north and south, and addressing what constitutes' new and additional funds' as opposed to traditional overseas assistance. More...

Adaptation and mitigation: What is available for Local Government investments in developing countries?

Type: Paper produced for the Fifth Urban Research Symposium

Author: Paulais. T, Pigey. J

Date: June 2009

This paper provides some useful detail on the situation "on the ground" in terms of access to international climate finance for local governments. It argues that current financing amounts are not enough to meet needs, and are not suited to local governments. It outlines how money could be leveraged and channelled to local governments. The paper also includes a summary table on sources of international mitigation and adaptation funding and their relevance for urban areas. More...


Adaptation Fund under the Kyoto Protocol: Mature for Concrete Implementation of Projects and Direct Access

Type: Report

Author: Harmeling. S, and Alpha Oumar Kaloga

Publisher: ECBI. European Capacity Building Initiative

Date: July 2010

This report describes the Adaptation Fund as a "Model for the future" because of its democratic governance and direct access system. The funds origin and operation is described, as are the challenges the Adaptation Fund faces. More...

Accessing Resources from the Adaptation Fund- The Handbook

Type: Guidebook

Author: Adaptation Fund Board

Date: 2010

The guidebook is designed for developing countries wishing to apply for funding from the AF, through an accredited implementing agency. More...

Making the Adaptation Fund work for the Most Vulnerable

Type: Briefing Paper

Author: Alpha O.  Kaloga, Germanwatch; Rachel Berger, Practical Action; Sven Harmeling, Germanwatch; Ben Murphy, Practical Action

Publishers: Germanwatch, Practical Action, Brot für die Welt (Bread for the World) 

Date: December 2010

This briefing makes recommendations on what the authors think the AF board must focus on in order to meet its objectives and potential. More...

Economics of Adaptation to Climate Change - Social Synthesis Report

Type: Report

Author: The World Bank

Date: 2010

The Synthesis Report summarizes the key findings of a global study report and seven country case study reports covering Bangladesh, Bolivia, Ethiopia, Ghana, Mozambique, Samoa, and Vietnam. By providing information on lessons learned and insights gained on adaptation to climate change, the goal is to assist policy makers worldwide to prioritize actions and develop an integrated approach for greater resilience to climate risks. More...