DNV KEMA Discussion Paper on Climate Change Adaptation Financing Options
Lower-income countries will incur heavy costs as they adapt to a changing climate. Various sources estimate total annual funding requirements for climate change adaptation to be in the range of US$50 – 100bn. (World Bank 2010a, UNDP 2007) This is in addition to the much larger sums countries in these regions must invest in infrastructure to support their baseline growth.
Lower-income countries are also particularly exposed to weather shocks, as many host fragile physical infrastructure and political institutions, or count agriculture as a large contributor to their domestic economies. As lower-income countries assume more extreme weather risk, with growth in vulnerable regions and exposure to shifting climate distributions, hazards to these nations’ economies also become more severe. This document focuses on the financing of climate resilience investments.