Alignment: A key element of successful financing strategies for climate change adaptation

This briefing note by the International Institute for Sustainable Development (IISD) argues that financing strategies for climate change adaptation in developing countries must be aligned with broader national development plans and other international financing frameworks to avoid fragmentation and maximize resource mobilization.

• Financing strategies for adaptation should be integrated with various other financing plans to ensure coherence. This includes alignment with strategies for nationally determined contributions (NDCs), the Sustainable Development Goals (SDGs), national development agendas, and other multilateral environmental agreements, as well as the investment plans of bilateral and multilateral partners like the Green Climate Fund and multilateral development banks.
• A lack of alignment between adaptation financing and other strategies can lead to fragmented outputs, duplication of efforts, and disjointed approaches to accessing funds. This fragmentation often stems from different ministries managing different international funding sources or the influence of various technical and financial partners on government approaches.
• Strategically aligning adaptation financing with broader national goals can increase political buy-in and encourage the adoption of adaptation actions across ministries, particularly those focused on finance and planning. It allows governments to demonstrate how adaptation contributes to development priorities like job creation and poverty alleviation.
• Adaptation financing strategies must account for a country's specific macroeconomic context, including existing debt burdens and the capacity for revenue generation. Because many developing countries have limited fiscal space and high sovereign debt, strategies should prioritize the most effective use of concessional finance and grants.
• The document identifies several international tools and initiatives that can inform the development of adaptation financing strategies, including the World Bank's Country Climate and Development Reports (used in 28 countries as of July 2023), the UNFCCC Needs-based Finance project, and the Vulnerable Twenty Group of Finance Ministers' prosperity plans.
• Effective alignment requires the engagement of adaptation planners in the resource mobilization processes for SDGs and national development plans. This involvement helps sector ministries understand the costs and benefits of climate resilience and ensures that climate risks are integrated into national investment decisions.

APA

International Institute for Sustainable Development (n.d.). Alignment: A key element of successful financing strategies for climate change adaptation. https://www.iisd.org/system/files/2023-08/alignment-financing-strategies-climate-change-adaptation.pdf

Chicago

International Institute for Sustainable Development. Alignment: A key element of successful financing strategies for climate change adaptation. n.d. https://www.iisd.org/system/files/2023-08/alignment-financing-strategies-climate-change-adaptation.pdf.

Wikipedia

{{cite report |author=International Institute for Sustainable Development |title=Alignment: A key element of successful financing strategies for climate change adaptation |url=https://www.iisd.org/system/files/2023-08/alignment-financing-strategies-climate-change-adaptation.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{internationalinstituteforsustainabledevelopmentndalignment, author = {{International Institute for Sustainable Development}}, title = {{Alignment: A key element of successful financing strategies for climate change adaptation}}, institution = {International Institute for Sustainable Development}, url = {https://www.iisd.org/system/files/2023-08/alignment-financing-strategies-climate-change-adaptation.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }