Bridging the Adaptation Finance Gap: Innovative Financing Mechanisms to Attract the Private Sector
According to the State and Trends in Adaptation Report, only $11.4 billion was tracked in adaptation finance in Africa annually in 2019 and 2020, when the estimated amount required for the continent is over $50 billion annually through to 2030. There is a lack of reliable and sustainable sources of finance for the adaptation programs and projects currently under development.
The importance attached to scaling up adaptation and to reinforce adaptation planning is clearly recognized in the Paris Agreement
Compared to the various types of financing instruments and grants that are available for climate change mitigation, there are few places where private and public sector project developers can get the necessary resources for adaptation. Further, most of the funds currently available for adaptation come from the public sector
The availability of finance from bilateral donors is the most critical component of addressing Africa’s climate finance needs. It is also important to expand other multilateral pools of finance, such as the multilateral development banks and the climate funds, as well as leverage the private finance that will be needed to address the continent’s adaptation and resilience needs.
Objectives of the event:
- Share experiences in bridging the gaps in adaptation finance and provide perspectives on the role of the Africa Adaptation Acceleration Program as a platform for meeting huge gaps in adaptation finance in Africa
- Provide perspectives on the importance of filling data gaps including the availability of granular, country-level, public and private adaptation data
- Explore the major drivers of climate adaptation finance flows including policies and needs
- Discuss effective approaches and methodologies for tracking and reporting climate finance among international organizations and entities of the Financial Mechanism
Questions to be addressed during the panel discussion:
- How to bridge the gaps in adaptation finance to enable it to be managed effectively and accelerated to reach vulnerable communities facing adverse impacts of climate change?
- What are the impacts of current finance mechanisms for Africa?
- What possibilities exist to develop more innovative forms of finance that reach the most vulnerable populations? How is the AAAP supporting in this?
- How are countries communicating their adaptation needs and processes?
- The new modalities of adaptation finance – reflected by BCG, Invesco, ADRIFi and Green Banks – insurance facilities, debt swaps, special drawing rights, CAW