The Landscape of Financing Strategies for Adaptation in Developing Countries

This report by the International Institute for Sustainable Development (IISD) analyzes 24 financing strategies for climate adaptation in developing countries, categorized into discrete adaptation strategies and general climate action strategies. It evaluates how these documents are developed, the role of multilateral development banks (MDBs), and their effectiveness in mobilizing finance. The report identifies a need for better integration between ministries of finance and climate leads, more strategic use of public grants to leverage private investment, and improved country-level tracking of climate finance flows.

• Developing countries use two primary types of financing strategies: discrete strategies focused solely on adaptation (such as NAP resource mobilization strategies) and general climate action strategies that include adaptation alongside mitigation (such as NDC financing roadmaps).
• There is a significant gap in the articulation of private sector engagement; while most strategies mention the need for private investment, they often lack a clear understanding of the risks and barriers that must be addressed to attract such capital.
• Detailed costing of every adaptation action is not necessarily the most effective approach, as it is often expensive and time-consuming, and these costs are frequently revised during the project design stage by funders.
• Multilateral Development Banks (MDBs) are critical delivery channels for climate finance, and strategies developed with MDB technical assistance show greater reported success in scaling up financing for priority actions.
• Effective adaptation financing requires the active engagement of ministries of finance and planning, as they control domestic budgets and lead interactions with international financial actors.
• A lack of systematized data and tracking mechanisms at the country level makes it difficult to determine the actual impact of financing strategies on mobilizing investment.
• International support for these strategies is provided through various mechanisms, including the GCF Readiness and Preparatory Support Programme, where over 40 of 52 countries accessing support as of April 2021 identified a financing strategy as an expected outcome.
• The report suggests that countries should focus on a small number of high-benefit, short-term strategic actions (deliverable within 5 years) to better attract attention from political leaders and funders.

APA

Murphy, D. (2022). The Landscape of Financing Strategies for Adaptation in Developing Countries. International Institute for Sustainable Development. https://www.iisd.org/system/files/2022-08/financing-strategies-for-adaptation-developing-countries.pdf

Chicago

Murphy, Deborah. The Landscape of Financing Strategies for Adaptation in Developing Countries. International Institute for Sustainable Development, 2022. https://www.iisd.org/system/files/2022-08/financing-strategies-for-adaptation-developing-countries.pdf.

Wikipedia

{{cite report |last1=Murphy |first1=Deborah |title=The Landscape of Financing Strategies for Adaptation in Developing Countries |publisher=International Institute for Sustainable Development |date=August 2022 |url=https://www.iisd.org/system/files/2022-08/financing-strategies-for-adaptation-developing-countries.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{murphy2022landscape, author = {Murphy, Deborah}, title = {{The Landscape of Financing Strategies for Adaptation in Developing Countries}}, institution = {International Institute for Sustainable Development}, year = {2022}, month = aug, url = {https://www.iisd.org/system/files/2022-08/financing-strategies-for-adaptation-developing-countries.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }