The report by the European Committee of the Regions examines financing for adaptation to climate change at local and regional level in the EU. It analyses public and private sources of finance, the obstacles faced by local and regional authorities in accessing these sources, and presents case studies of the successful use of private finance. It also provides recommendations for local and regional authorities, private investors and policymakers to improve access to adaptation finance. It focuses on the need for innovative financial models and public-private cooperation to achieve climate goals.

Glossary

Climate change adaptation: The process of adapting to the actual or expected impacts of climate change with the aim of minimizing damage and taking advantage of opportunities.

Mixed financing: Combining public and private resources to finance projects that bring public benefit.

Green bonds: Bonds whose proceeds will be used to finance environmental projects, including climate change adaptation.

Public-Private Partnership (PPP): Long-term contractual cooperation between the public and private sectors to implement a project or service.

Bankable project: A project that is profitable and risky enough to attract private investment.

Credit rating: The ability of the debtor to repay its obligations on time and in full.

EU Taxonomy: A classification system that defines which economic activities are considered environmentally sustainable.

Cohesion Funds: EU financial instruments designed to support the economic and social development of less developed regions.

Horizon Europe: EU Framework Programme for Research and Innovation.

Recovery and Resilience Tool (RRF): An EU financial instrument designed to support the recovery from the COVID-19 pandemic and the transition to a green and digital economy.

Spring