Analysis of How International Finance is Supporting Planned Adaptation Priorities in Least Developed Countries

Abstract

The Paris Agreement notes that adaptation finance should consider the priorities and needs of developing countries and, in particular, those that are most vulnerable to climate change impacts, such as least developed countries (LDCs). The funds under the United Nations Framework Convention on Climate Change (UNFCCC) play a key role in assisting developing countries in their adaptation efforts; therefore, it is relevant to better understand the ways and extent to which adaptation finance channeled through these funds has addressed planned adaptation priorities in LDCs. The results presented in this chapter, stemming from a detailed review of projects financed by the UNFCCC, reveal that the adaptation measures being supported are mainly for capacity building and changes in practices or behavior, with increasing investment in infrastructure and technology. The analysis shows a positive relationship between the amount of finance and the percentage of priorities addressed. However, the picture is more nuanced, as a high amount of finance does not necessarily reflect better progress in addressing adaptation priorities. While some countries with high access to finance—such as Comoros and Tanzania—have addressed a low percentage of national adaptation priorities, other countries—such as Guinea Bissau and Chad—have addressed a higher percentage of adaptation priorities with lower access to finance. Finally, countries’ access to adaptation finance varies significantly, potentially raising opportunities to improve funding distribution among LDCs and/or target readiness support to those countries in most need.