FINANCING NATIONAL ADAPTATION PLAN PROCESSES

The document outlines a framework for financing National Adaptation Plan (NAP) processes, distinguishing between the development phase (planning and coordination) and the implementation phase (execution of adaptation actions). It identifies domestic public revenues, bilateral providers, multilateral funds, and private sector actors as key funding sources. The guide emphasizes the need for a dedicated financing strategy to bridge funding gaps and align national priorities with available financial instruments, while highlighting the critical role of senior-level political commitment and the integration of adaptation costs into national budgeting cycles.

• The NAP process is divided into two distinct phases with vastly different financial requirements: a development phase focused on initiation and coordination, and an implementation phase involving the execution of prioritized adaptation actions, where costs are "significantly higher than those related to the development phase".
• Domestic public finance is essential for the long-term sustainability of the NAP process, particularly for covering ongoing operating costs and investing in public goods such as health and education. Integrating these costs into national budget cycles, such as the Medium-term expenditure framework (MTEF), provides a predictable funding stream.
• Bilateral providers offer flexible funding through grants, loans, and technical assistance. While a limited number of providers support the development phase, there are significant opportunities for funding the implementation of specific actions through government-to-government negotiations or targeted climate funds.
• Multilateral funds, particularly the Green Climate Fund (GCF), are major sources of finance. The GCF provides a Readiness and Preparatory Support Programme for the development phase, with funding up to US$3 million for formulating NAPs, and a project preparation facility offering grants up to US$1.5 million.
• Multilateral development banks (MDBs) primarily provide loans rather than grants and are most effective for large-scale infrastructure projects in sectors such as water, energy, and transport. In 2014, MDBs provided an estimated US$4.521 billion in adaptation financing to developing countries.
• Private sector finance is almost exclusively relevant to the implementation phase. Mobilizing this finance requires governments to build a clear business case for adaptation and create a supportive investment environment through non-financial incentives and economic signals.
• Public-private partnerships (PPPs) are identified as a viable mechanism for large-scale resilient infrastructure and natural resource management, though they are complex to design and require high up-front contracting costs and specific institutional capacities.
• A robust NAP financing strategy should consist of three main building blocks: identifying the financing gap, determining suitable financing options and instruments, and identifying operational next steps to improve access to funding.

APA

Parry, J.-E., Dazé, A., Dekens, J., Terton, A., Brossmann, M., & Oppowa, S. (2017). FINANCING NATIONAL ADAPTATION PLAN PROCESSES. NAP Global Network. https://napglobalnetwork.org/wp-content/uploads/2017/08/napgn-en-2017-financing-nap-processes-contributing-to-the-achievement-of-ndc-goals.pdf

Chicago

Parry, Jo-Ellen, Angie Dazé, Julie Dekens, Anika Terton, Michael Brossmann, and Sascha Oppowa. FINANCING NATIONAL ADAPTATION PLAN PROCESSES. NAP Global Network, 2017. https://napglobalnetwork.org/wp-content/uploads/2017/08/napgn-en-2017-financing-nap-processes-contributing-to-the-achievement-of-ndc-goals.pdf.

Wikipedia

{{cite report |last1=Parry |first1=Jo-Ellen |last2=Dazé |first2=Angie |last3=Dekens |first3=Julie |last4=Terton |first4=Anika |last5=Brossmann |first5=Michael |last6=Oppowa |first6=Sascha |title=FINANCING NATIONAL ADAPTATION PLAN PROCESSES |publisher=NAP Global Network |date=2017 |url=https://napglobalnetwork.org/wp-content/uploads/2017/08/napgn-en-2017-financing-nap-processes-contributing-to-the-achievement-of-ndc-goals.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{parry2017financing, author = {Parry, Jo-Ellen and Dazé, Angie and Dekens, Julie and Terton, Anika and Brossmann, Michael and Oppowa, Sascha}, title = {{FINANCING NATIONAL ADAPTATION PLAN PROCESSES}}, institution = {NAP Global Network}, year = {2017}, url = {https://napglobalnetwork.org/wp-content/uploads/2017/08/napgn-en-2017-financing-nap-processes-contributing-to-the-achievement-of-ndc-goals.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }