Presentation given by Deborah Murphy and Maribel Hernandez, NAP Global Network, as part of the Network's Peer Learning Forum on “The Transition from Planning to Implementation in the NAP Process,” held in Victoria Falls, Zimbabwe, from February 27-29, 2024

1. Building Block 2: Developing
projects and programs in a
strategic manner
Peer Learning Event
Adaptation Investment Planning
February 27-29, 2024
Victoria Falls, Zimbabwe

2. Building Block 2 in the
transition from from
planning to
implementation
• A strategic process in needed to
develop projects and programs
• Adaptation priorities need to be
implementation ready
• Need to determine if projects and
programs are adaptation specific (e.g.,
a GCF adaptation project) or if they
involve mainstreaming (e.g.,
integrating adaptation priorities in an
agricultural investment program).

3. Scaling Up Investment for
Adaptation
• Critical element of BB2: developing
projects and programs in a strategic
manner
• A strategic process for clarifying a country’s
approach to unlocking investment in a manner
that enhances and accelerates the
implementation of national adaptation
priorities.
• Move from a list of high-level actions to
identify those that are investment ready /
ready to be funded
• Approach to accessing funds for these
priority actions
The goal: to scale up finance for adaptation

4. Scaling up Finance for
Adaptation – Approaches
A growing number of
countries have prepared or
are planning to prepare
financing strategies and
adaptation investment plans
to help finance priority
adaptation actions.
Countries have taken a range
of approaches.

5. Preparing Financing Strategies for
Adaptation – Guiding Principles
• Based on a project that examined what the
scope of these strategies should be, and
what constitutes good practices for their
development.
• A well-defined financing strategy for
adaptation can clearly communicate a
country’s key funding for adaptation
priorities.
• Can be a critical tool to help governments
take a strategic approach that integrates
international and domestic public and
private finance to most cost-effectively
implement NAP priorities identified.
Download the reports
https://www.iisd.org/projects/mobilizing-
development-finance

6. Guiding principles 1 to 3 are particularly relevant to the process of
preparing and implementing adaptation investment plans. The
adaptation investment planning process should:
Be country driven and
fit for purpose.
Engage ministries of
finance and planning.
Take a participatory and
inclusive approach.
3
2
1

7. Guiding principles 4 to 7 inform the development of the content of
an adaptation investment plan for adaptation, which should :
Identify the best
and most strategic
uses of various
sources of finance
for adaptation.
Be aligned and
consistent with
other processes
that are relevant
to financing
adaptation,
including national
development
priorities and
other financing
strategies.
Identify actions to
improve the
enabling
environment to
scale up finance
for adaptation.
Set out processes
to implement the
strategy and
measure its
success.
4 5 6 7

8. Scaling up investment in
adaptation – Considerations
for this session
• Have you determined which NAP priorities will
provide the greatest adaptation benefit and
should be prioritized for financing?
• Have you considered which NAP priorities can
be mainstreamed in existing programs? Which
priorities need to be financed through new
projects or initiatives?
• How do NAP actions fit with other related
investment/financing plans, e.g., NDCs, national
and sectoral development plans, plans related to
biodiversity and SDGs?

9. Moving from Planning to
Implementation:
Focus on Adaptation Investment
Plans
February 2024

10. The Adaptation Investment Plan (AIP) is:
 A useful tool to help unlock finance for adaptation and to accelerate the implementation of the NAP.
 A “roadmap” to guide the implementation of the NAP Financing Strategy:
 It shows the country’s priority adaptation investments in a clear and structured way.
 It facilitates resource-matching exercises and dialogue with other stakeholders (e.g., Ministries of
Planning and Finance, the private sector, potential donors).
 A systemic process for translating national adaptation priorities into “bankable” adaptation /
investment-ready projects:
 The AIP document is the outcome of a process through which the prioritized adaptation activities
acquire the degree of maturity required to be easily translated into concept notes / proposals to be
submitted to different potential financers.
 Robust, science-based climate evidence and costing adaptation are key.
 The lack of appropriate adaptation pipelines is a major challenge for accessing adaptation
finance.
From Planning to Implementation
Do we need Adaptation Investment Plans?

11. The Adaptation Investment Plan (AIP) is:
 An inclusive process that helps operationalize the integration of adaptation priorities into
existing national planning and budgeting cycles:
 It gives visibility to and enables traceability of “adaptation investments”.
 It helps to identify entry points for mainstreaming adaptation into the planning and
budgeting cycles and potential national sources of funding for adaptation.
 A flexible approach to consider the national specificities, priorities and needs:
 Countries can choose the most appropriate process, structure and content of their
AIPs, e.g.:
 Systemic versus project-by-project approach;
 AIP documents can include different elements: adaptation investments & potential
sources of funding; monitoring and evaluation system; policy measures &
frameworks; governance aspects; capacity-building needs, etc.
 A living process which allows the integration of lessons learnt and evolving priorities:
 Like the NAP process, Adaptation Investment Planning is an iterative process.
 The Monitoring, Learning and Evaluation system is an essential element of the AIP.
From Planning to Implementation
Do we need an Adaptation Investment Plan?

12.  National sources - where feasible:
 Help leverage other sources of finance (e.g., bilateral, multilateral, private sector).
 National Funds could be used as a tool to mobilize adaptation finance.
 International sources: Bilateral / Multilateral
 A very good understanding of the eligibility criteria / investment requirements/
“taxonomies” of the potential donors, is needed.
 Focusing on low-hanging fruits helps to increase the efficiency in the process for accessing
adaptation finance.
 Some donors provide project preparation support.
 Public and Private sources:
 Public sources of finance are not enough to bridge the Adaptation Gap.
 A very good understanding of the barriers (e.g., risk perception, return on investment,
absence of appropriate policy frameworks, etc.) and enablers (e.g., incentives, PPP
Frameworks, private sector involved from the early stages of the design of a project, etc.)
for private sector investment in adaptation, is key.
The Adaptation Investment Plan
All potential sources of finance should be considered

13. Thank you!
Email:
info@napglobalnetwork.org
Website:
www.napglobalnetwork.org
@NAP_Network NAP Global Network

14. Global adaptation is
slow on finance
• UN Environment Adaptation Gap
Report 2023 - US$ 215 to US$ 387
billion needed in adaptation finance
per year to 2030 to implement national
adaptation priorities in developing
countries.
• International public climate finance
flows to developing countries estimate
to be US$ 21.3 billion in 2021
• Adaptation finance gap for developing
countries is currently in the range of
US$ 194 billion to US$ 366 billion per
year.
• Costs will rise significantly by 2050 due
to increasing climate risks.
UN Environment. (2023). Adaptation Gap Report 2023: Underfinanced. Underprepared.
Inadequate investment and planning on climate adaptation leaves world exposed.

15. Why the adaptation finance
gap?
• Increasing climate risks and impacts, and
associated costs.
• Allocations of climate finance that favour
mitigation over adaptation.
• Adaptation in context-specific, which limits
standardized solutions and high transaction
costs.
• The costs and benefits of adaptation can be
difficult to estimate.
• Lack of adaptation investment plans and lack of
project pipeline
• Challenges in attracting the interest of
Ministries of Finance; and competing priorities
for scarce public dollars, and grant and
concessional finance.
- Difficult to attract private sector investment into
adaptation because of lack of revenue streams.