Adaptation finance plays a key role in the efforts of local and regional authorities (LRAs) to promote sustainable development and inclusive growth. LRAs can use adaptation finance to support sustainable development (more…)

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

This document, prepared for the European Parliament's Committee on Regional Development, looks at the role of cohesion policy in supporting climate change adaptation, strengthening regional resilience and promoting sustainable entrepreneurship in the EU.

Main topics:

• Identification of regional and sectoral adaptation needs: The document analyses the different climate risks and adaptation needs across different types of EU regions (urban, rural, coastal, mountain areas, islands and outermost regions) as well as across different economic sectors. For example, urban areas face risks of flooding, heat waves and air quality deterioration, which require improving drainage systems, expanding green spaces and promoting sustainable transport. The document points out that “the impacts of climate change are being felt differently in different regions of the EU, creating the need to tailor adaptation strategies to the regional and potentially local contexts they are intended to benefit.” (Introduction)
• Mapping EU policy instruments to support climate change adaptation: The document provides a comprehensive overview of all EU policy instruments supporting the EU Adaptation Strategy, with a focus on cohesion policy. These include financial instruments, information and knowledge platforms, legislative and regulatory frameworks, strategies, plans and guidelines, initiatives and networks, skills and education programmes, research and innovation, as well as specialised agencies and bodies.
• Assessment of current cohesion policy support for adaptation: The paper analyses data on funding from cohesion policy funds, as well as the results of surveys among managing authorities and business operators. The findings point to an increase but still insufficient funding for adaptation, with gaps between support and needs. The paper notes that “funding data do not provide a breakdown of adaptation support by sector, type of business or specific investments.” (Chapter 4)

Key findings:

• Adaptation funding from Cohesion Policy has increased in the 2014-2020 and 2021-2027 periods, but is still not sufficient to cover all needs.
• There are gaps between adaptation support and actual needs, especially in certain sectors and regions.
• Business entities are often unaware of the available adaptation funding options from cohesion policy.
• Regional and local authorities need to strengthen their capacities in the field of climate change adaptation.

Recommendations:

• Improving integration and adaptation monitoring: Improving the integration of climate change adaptation considerations into all projects funded by cohesion policy, not just those explicitly labelled as "adaptation" interventions.
• Development of sector strategies: Developing sectoral strategies for accessing adaptation funding from cohesion policy to ensure that sectors vulnerable to climate change (e.g. tourism) have sufficient access to funding.
• Improving business awareness and access to finance: Increasing awareness among businesses about available financing options and simplifying access to financing for SMEs.
• Strengthening regional capacities for adaptation: Providing training, recruiting specialized staff and building partnerships with academia and research institutions to strengthen the capacities of regional and local authorities.

The document stresses that “national authorities (in partnership with EU institutions such as the European Parliament, the European Commission and the European Committee of the Regions) should work to strengthen regional and local capacities for adaptation by improving knowledge and expertise within regional and local authorities.” (Chapter 6)

This document provides valuable information on how cohesion policy can contribute to climate change adaptation in the EU. It identifies key challenges and offers concrete recommendations for improvement. The implementation of these recommendations should lead to a better use of cohesion policy to strengthen the EU's resilience to climate change. Spring

Time is running out to join the MIP4Adapt Technical Assistance Programme, an initiative that empowers Charter signatories to plan and seek funding to implement robust and effective climate change adaptation solutions in their regions. Applications close on 31 January 2025, marking the last opportunity to access this support. (More on climate-adapt.eea.europa.eu)

The sources provide a comprehensive view of the issue of climate change adaptation within the EU and point to several shortcomings in the efficiency of the use of funds for this purpose. (more…)

A message The European Court of Auditors assesses the EU framework for climate change adaptation and financing. The analysis shows an overall good framework (more…)

The paper analyses the financing options for local and regional authorities for climate change adaptation. It presents various public and private sources of financing, including public-private partnerships, investment funds and insurance mechanisms. It focuses on overcoming barriers to raising funds and highlights the importance of public-private cooperation. It provides case studies from the European Union that demonstrate successful adaptation financing projects. It concludes with recommendations for local authorities, private investors and policymakers to improve the availability and effectiveness of adaptation financing. The entire document

This research article describes the creation of a new integrated database of adaptation and mitigation measures in Europe. The database collects data from several existing sources, classifying and interlinking different types of climate measures. It focuses on the implementation of plans and provides information important for effective planning, including timelines, costs, and synergistic effects. The methodology used is reproducible and the database is available online. The research highlights the need for a unified framework for recording and monitoring climate action in Europe. (More on zenodo.org)

The Climate-ADAPT country profile panel has been updated with a new and more interactive design. The dashboard allows you to compare the adaptation policy information reported in 2023 across multiple countries or explore detailed information through each country's profile.

Urbanizing river deltas are highly vulnerable to sea level rise and extreme weather events such as floods and droughts. Water-related disasters are already occurring more frequently due to climate change, rapid urbanization, unsustainable land use and aging infrastructure, which threaten much of the human and natural environment in these low-lying and declining areas around the world. As climate change stress levels accelerate, social and physical transformations are necessary to adapt our deltas to climate change. In the Netherlands, in the last century, imagination and evidence in the form of a long-term spatial vision have played a key role in setting, sharing and implementing a new direction to overcome flood disasters by changing the Rhine coast and riverbed. – Delta Meuse – Scheldt. The unprecedented rainfall in July 2021 and the storm in December 2021 that hit Western Europe revealed the effectiveness of this new direction. We therefore call for a leading role for design in delta climate science and management to imagine, analyze and communicate future climate adaptation perspectives in delta urbanization. (Chris Zevenbergen, Maurice G. Harteveld, Ellen Trompová, more at nature.com)

Local governments, policy makers, experts and stakeholders gathered in Barcelona last month to demonstrate sustainable solutions to energy poverty. Several LIFE projects were presented at the EPAH 2024 International Annual Conference. Across the northern hemisphere, nights are getting darker, colder and longer – and millions of people are facing the challenge of heating their homes. Nearly 500 energy poverty experts gathered in person and virtually at the EPAH 2024 International Annual Conference to explore ways to keep warm. We examine the contributions of two projects - Horizon 2020 CoolToRise and LIFE ReHABITA - that have shown how they help residents reduce energy consumption. bills, stay warm in winter and cool in summer. (More on cinea.ec.europa.eu)

Cities can implement different types of interventions to support the transformation towards sustainable climate resilience. These interventions, also called 'leverages', focus on five key areas, referred to in the resources as 'leverage points':

1. Values and goals:

• Increasing awareness and engagement in climate resilience among political leaders, officials and residents through educational campaigns, workshops and public debates.
• Promotion of sustainable lifestyles, which minimize the carbon footprint and promote climate resilience, for example through campaigns aimed at reducing energy and water consumption.
• Integration of climate resilience principles into local policies, strategies and plans, such as spatial plans, infrastructure development plans and climate change adaptation plans.

2. Management (Governance):

• Creating clear responsibilities for climate resilience within the city administration and the appointment of a coordinator for climate resilience.
• Support of cooperation and coordination between different departments of the city administration, as well as between the city and external stakeholders such as civil associations, academia and the private sector.
• Integrating climate resilience into existing planning tools and processes, such as spatial plans, environmental assessments and public procurement.
• Consideration of social inequality and justice in the planning and implementation of climate change adaptation measures, in order to ensure that vulnerable population groups are not negatively affected.
• Involvement of citizens in decision-making processes related to climate resilience through participatory methods of planning and consultation.

3. Provision and exchange of knowledge:

• Research and monitoring support impacts of climate change at the local level and identification of relevant adaptation measures.
• Creating a platform for information sharing on climate change and adaptation to climate change among different stakeholders, including residents, businesses and city administration.
• Providing professional assistance and training for city administration employees and other stakeholders in the field of climate resilience.

4. Resources and capacities:

• Ensuring sufficient financial resources for the implementation of adaptation measures, through local budgets, grants, investments and public-private partnerships.
• Investments in capacity building within the city administration and among residents, through training, mentoring and networking.
• Use of existing resources and infrastructure, such as green spaces, waterways and buildings, to support climate resilience.
• Support of innovation and technological development in the field of adaptation to climate change, for example through pilot projects and public procurement aimed at green technologies.

5. Measures:

• Implementation of a wide range of adaptation measures targeting different sectors such as water management, energy, transport, health and agriculture.
• Prioritization of measures based on local climate risks, vulnerability and available resources.
• Monitoring and evaluation of effectiveness adaptation measures and their possible adjustment based on the experience gained.
• Involvement of residents in the implementation adaptation measures, for example through community projects and volunteer activities.

It is important to emphasize that the transformation towards sustainable climate resilience requires a comprehensive and integrated approach that includes interventions at all five lever points. Successful transformation requires a long-term strategy, the cooperation of various stakeholders and the flexibility to adapt to changing conditions. Co2AI

Research on strengthening climate resilience in cities, particularly through transformation-based strategies, is still at an early stage. The success of climate change adaptation measures in cities is influenced by a wide range of factors. The sources identify ten key factors:

1. Personnel resources: Sufficient competent personnel in the municipality is essential for the planning and implementation of adaptation measures. A lack of staffing capacity can lead to a vicious cycle of inactivity.

2. Financial resources: The availability of funds from various sources (local budgets, subsidies, EU funds, research projects) is essential for the implementation and maintenance of adaptation measures. Complicated administration of subsidy applications can be an obstacle, especially for smaller cities.

3. Awareness of the problem and urgency: A strong sense of the need to act, which can be stimulated by the activity of civil society or the experience of extreme weather, is an important factor for the inclusion of adaptation measures on the agenda of the municipality.

4. Political will and support: Support from the political leadership is crucial for the promotion and implementation of adaptation strategies and measures.

5. Knowledge and data sources: Lack of data, its unavailability or incorrect processing, as well as uncertainty in knowledge represent a significant obstacle in adaptation.

6. Synergy vs. conflicts: Adaptation is easier to implement if synergies can be achieved with other areas, such as climate change mitigation or health protection. On the contrary, competition or conflicts with other areas of the city's development can be an obstacle.

7. Structure of self-government: Good communication and cooperation between the various departments of the municipality are important for the effective solution of adaptation issues. A clear division of responsibilities and specialized staff for adaptation are also essential.

8. Participation and acceptance: Acceptance by the public and civil society, as well as a high level of public participation and awareness, support adaptation. Conversely, lack of acceptance can be the cause of insufficient activity.

9. Legislative framework: The existence of a clear legislative framework at the national and regional level, which defines responsibilities and provides tools for adaptation, is important for the success of adaptation measures.

10. Character of the city: The size of the city, its type (historical city, industrial city, university city), financial and structural strength, as well as the organizational structure of the municipality, influence its adaptation capacity.

The sources emphasize that these factors are interconnected and their influence is manifested in different stages of adaptation.

In addition to identifying key factors, the resources emphasize the concept of adaptation points, which represent strategic points in the system where targeted changes can lead to large-scale impacts. Five adaptation points for adaptation to climate change in cities:

1. Values and goals: The sharing of common values and goals in the field of adaptation by the public, local government and other actors is the basis for a successful transformation.

2. Management (governance): Effective governance structures that support coordination, cooperation and participation of various stakeholders are essential for the implementation of adaptation measures.

3. Provision and exchange of knowledge: The availability of relevant and comprehensible information about climate change and its impacts, as well as tools and strategies for adaptation, is crucial for informed decision-making.

4. Resources and capacities: Sufficient personnel, financial and technical resources are essential for the implementation and maintenance of adaptation measures.

5. Measures: The selection and implementation of specific adaptation measures that are adapted to local conditions and needs is the essence of the adaptation process.

Sources state that successful adaptation requires targeted interventions at several, ideally at all adaptation points. A combination of measures at different levels of the system with an emphasis on long-term and systemic changes has a greater chance of success. Co2AI

The EU-funded ScienceUs project invites legal entities from EU Member States or countries associated with Horizon Europe to apply for funding to support initiatives related to the EU mission in the field of "Climate Change Adaptation". Successful applicants will receive financial support, networking opportunities and professional advice. The deadline for applications is January 6, 2025.

This paper deals with the financing of adaptation to climate change. It focuses in particular on the need to increase financing for adaptation and on the obstacles that stand in the way of the involvement of the private sector. The paper highlights the gap between needed and available funding and presents several tools and initiatives that could help reduce this gap. In addition, the text describes barriers to private sector involvement, such as a lack of standardization, transparency and information, despite growing interest in climate action. The paper also outlines perspectives for future adaptation financing and highlights the need for political will to allocate resources for this important aspect of the fight against climate change.

You can download the document here