This paper reviews the current state of practice and debates related to the mainstreaming of adaptation finance and synthesises experience and key lessons from the Action on Climate Today (ACT) programme that may be of relevance to practitioners and governments working to mobilise financing for climate-resilient growth and development.
In particular, this paper reviews:
- Methods for estimating the climate change relevance of budgets or expenditure;
- Approaches to budget tracking and expenditure review;
- Estimations of economic loss and damage;
- Calculation of the adaptation financing gap;
- The development of financing scenarios;
- Approaches to closing the adaptation gap;
- Key entry points for mainstreaming climate adaptation finance.
The paper also discusses necessary institutional mechanisms and the capacity development required for effective climate finance mainstreaming and provides key lessons for practitioners and government agencies looking to undertake similar work.