The document discusses financing needs for the National Adaptation Plan (NAP) process and potential sources of financing. It notes that financing is needed throughout the NAP process to cover both operating costs and investment costs. The amount of financing required will vary by country but is expected to be significant. Potential sources of financing discussed include domestic public sources, bilateral and multilateral providers, and private finance. The document recommends developing a dedicated NAP financing strategy early in the process to help align financing needs with sources and promote a coordinated approach.

1. Coordinating
Climate-Resilient
Development
A Financing Perspective on
the NAP Process
Jo-Ellen Parry
June 20, 2017
Mexico City, Mexico

2. Financing is needed:
• Throughout the NAP process
• To cover two types of costs:
» Operating costs
» Investment costs
The amount of financing needed:
• Will vary from country to country
• Expected to be significant
Introduction

3. The NAP Process: A financing perspective

4. Amount of financing required
• Greater financing needed in the
implementation phase
Actors involved
• Development phase: primarily government
• Implementation phase: greater number of
actors involved
Different phases,
different needs

5. Potential sources of finance
PrivatePublic
International
Domestic
Private enterprises
Private financiers
National and sectoral budgets
Sub-national budget
Domestic climate change funds
Bilateral providers
Multilateral climate funds
Non-climate focused multilateral
funds
Multilateral development banks

6. Domestic government revenues
» Relatively predictable and consistent
» Enhance national ownership
» Flexible; potential to leverage other sources
Bilateral providers
» Flexible: sectors and instruments
» Promote innovative approaches
Multilateral providers
» Diversity of potential sources
Private finance
» Invest in new business opportunities
» Invest to reduce business-related risks
Financing options

7. Financing needs of the NAP Process

8. Help to align financing needs with potential
sources of financing
Promote a planned, coordinated and
coherent approach
The strategy should be:
» Developed early in the NAP process
» Tailored to country circumstances
» Aligned with other initiatives, such as NDCs
Dedicated NAP
Financing Strategy

9. Building Blocks of a Financing Strategy

10. • From the start, consider financing needs
• Engage key stakeholders early and continuously
• Ensure senior-level engagement
• Recognize the critical role of domestic finance in
sustainably financing the process
• Look beyond individual projects
• Engage the private sector through targeted
strategies
• Tailor strategies to national circumstances and
capacities
General guidance

11. www.napglobalnetwork.org
info@napglobalnetwork.org
Twitter: @NAP_Network
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