The evolution of transformational change in multilateral funds dedicated to financing adaptation to climate change

ABSTRACT

Transformational adaptation is increasingly viewed as necessary to prevent the worst offsets in development gains due to severe climate impacts. However, clarity regarding how to produce transformational adaptation in practice is lacking, creating problems for project design and implementation. This paper examines (1) how transformational adaptation has been defined by major funders of adaptation; (2) how the concept has influenced funding priorities and the financing of projects. The study is based on a comparative analysis of the investment criteria, board meeting minutes, documents, and reports of the primary financial mechanisms under the United Nations Framework Convention on Climate Change: the Least Developed Country Fund, the Special Climate Change Fund, the Adaptation Fund and the Green Climate Fund. Our study demonstrates an increasing emphasis on transformational adaptation across funds over time, particularly in the Green Climate Fund. Transformative potential does guide funding decisions, but a clear understanding of whether transformational change is achievable, feasible, and desirable under all conditions has not yet emerged, an issue acknowledged by the funds and regularly discussed. Our analysis suggests that acknowledging tensions which arise with transformation in adaptation finance is critical because investment criteria and definitions of transformation impact the approaches to adaptation countries take.

KEYWORDS:

• Climate change
• climate finance
• adaptation
• transformational change
• innovation
• Green Climate Fund

Disclosure statement

No potential conflict of interest was reported by the author(s).

Additional information

Notes on contributors

Marli Kasdan

Marli Kasdan is an Environment and Climate Change Consultant at the United Nations Development Programme (UNDP) where she supports UNDP's global programmes across the nature, climate, and energy portfolio. She graduated with her Master's degree from the Fletcher School of Law and Diplomacy in 2018.

Laura Kuhl

Laura Kuhl is an Assistant Professor in the School of Public Policy and Urban Affairs and the International Affairs Program at Northeastern University. Her research focuses on adaptation policy in developing countries, with a focus on climate finance. She holds a PhD from the Fletcher School of Law and Diplomacy.

Pradeep Kurukulasuriya

Dr Pradeep Kurukulasuriya leads UNDP's support to countries on addressing nature, climate and energy priorities in the context of their national priorities and aspirations on the sustainable development goals and UNDP's support to countries on accessing climate finance from international funds including the family of funds under the Global Environment Facility, Green Climate Fund and Adaptation Fund. Dr Kurukulasuriya is an economist with a specialization on the economics of adaptation to climate change and natural resource management.