Preparing the ground for adaptation
1.4 What financial support is available for adaptation?
Adaptation funding on the municipal level is available through several EU funding instruments, some national, regional and local funds, as well as from some international financing institutions, and private donor organisations.
Moreover, adaptation-relevant funding can be obtained through other sectoral funding mechanisms, in which case it may not necessarily be labelled as ‘funding for adaptation', however, may still contribute to adaptation policy aims.
Flexibility and a combination of various funding sources are advisable, especially in cases where dedicated municipal budget lines may be hard to secure.
Furthermore, tapping into non-monetary support (See Q0.6 Where can I find support for adaptation planning in the form of advice and capacity building?) can relieve the pressure on funding requirements.
For urban areas the following funding lines have been identified:
- Adaptation to climate change is one of the LIFE 2014-2020 calls for Action Grants priority areas. The programme provides up to 60% co-financing for best practice, pilot and demonstration projects that contribute to supporting efforts leading to increased resilience to climate change.
- Horizon 2020, the EU's programme for research and innovation, aims to allocate 35% of its budget to climate-related research expenditure. It also requires end-user and stakeholder involvement, which opens the doors for city involvement.
- Adaptation funding can also be supplemented by grants from such financial institutions and grant providers as the European Investment Bank or the European Bank for Reconstruction and Development.
- Adaptation to climate change is mainstreamed throughout various sectoral EU funding instruments. Those include the CAP (mainly the European Agricultural Fund for Rural Development); the Cohesion fund; the European Regional Development Fund (particularly through INTERREG), the European Social Fund; and the European Maritime and Fisheries Fund.
- National and sub-national funding: On the national and sub-national levels funding may be available both for adaptation planning and implementation, awareness and capacity building or research.
- Private funding donors: In some cases private funding organisations support adaption in urban areas. For example, the Rockefeller Foundation has launched the 100 Resilient Cities Challenge. The chosen cities receive technical support and resources to improve their urban resilience over three years.
- Private sector funding: Private sector is an important stakeholder in adaptation to climate change risks, with high motivation for adaptation action. Private sector adaptation action is driven by: a) value protection motives when private actors seek to protect their assets and supply chains, b) value creation opportunities when the private sector seeks to provide adaptation solutions as business opportunities.
Local governments are, therefore, encouraged to seek cooperation with private sector (such as through public-private partnerships) to leverage the private sector funding.
- The combination of municipal and private sector funding can be used to develop own city funds for adaptation, such as proKIima fund in Hannover region.
- Furthermore, the insurance sector is an important private sector player that can provide incentives for businesses and households for investing in climate resilience.
EU City-specific information
- LIFE and Climate change adaptation
- Elaboration and implementation of a local adaptation strategy or action plan
- 3rd Open European Day 2016 Conference Report
- Planning for Adaptation to Climate Change - Guidelines for Municipalities
- Urban adaptation to climate change in Europe 2016 - Transforming cities in a changing climate
- Methods and Tools for Adaptation to Climate Change - A Handbook for Provinces, Regions and Cities
- Climate-Friendly Cities: A Handbook on the Tracks and Possibilities of European Cities in Relation to Climate Change.
- Urban adaptation to climate change in Europe - Challenges and opportunities for cities together with supportive national and European policies
- A flood and heat proof green Emscher valley, Germany
- Climate bond financing adaptation actions in Paris
- EEA grants supporting the city of Bratislava to implement climate adaptation measures
- Ghent crowdfunding platform realising climate change adaptation through urban greening
- Optimization of the mix of private and public funding to realise climate adaptation measures in Malmö
- The economics of managing heavy rains and stormwater in Copenhagen – The Cloudburst Management Plan (2016)
- GAIA - Green Area Inner-city Agreement to finance tree planting in Bologna
- European funds for flood protection measures in Smolyan - Bulgaria
- Vrijburcht: a privately funded climate–proof collective garden in Amsterdam
- Public-private partnership for a new flood proof district in Bilbao
- Private investment in a leakage monitoring program to cope with water scarcity in Lisbon
- Four pillars to Hamburg’s Green Roof Strategy: financial incentive, dialogue, regulation and science
EU General information
International information for cities
- Cities and Climate Change: National governments enabling local action
- Guide to Climate Change Adaptation in Cities
- Financing the Resilient City
- How To Make Cities More Resilient - Handbook for Local Governments
- Climate Change and Cities: Second Assessment Report of the Urban Climate Change Research Network
- Environment and Urbanization - Towards transformative adaptation in cities: the IPCC's Fifth Assessment