D a whi e pape
o policymake s
and P ac i ione s
1
© CLIMATEFIT Conso ium, 2024
This deli e able con ains o iginal unpublished wo k excep when indica ed
o he wise. Acknowledgemen o p e iously published ma e ial and o he wo k o
o he s has been made h ough app op ia e ci a ion, quo a ion, o bo h.
Rep oduc ion is au ho ised i he sou ce is acknowledged.
This documen has been p epa ed in he amewo k o he Eu opean p ojec
CLIMATEFIT. This p ojec has ecei ed unding om he Eu opean Union’s Ho izon
Eu ope p og amme unde g an ag eemen no. 101112705.
The sole esponsibili y o he con en o his publica ion lies wi h he au ho s. I
does no necessa ily ep esen he opinion o he Eu opean Union. Nei he he
CINEA no he Eu opean Commission a e esponsible o any use ha may be
made o he in o ma ion con ained he ein.
Deli e able Numbe and
Name
D6.3 - D a whi e pape o policymake s and
P ac i ione s
Wo k Package
WP6
Dissemina ion Le el
PU - Public
Au ho (s)
Alessand o Asmundo (ITASIF), Mi iam San o o (ITASIF),
Da ide Chia amon e (ITASIF), Giulia Galluccio (CMCC),
Chia a T ozzo (CMCC), Valen ina De Cicco (CMCC),
S ella Whi ake (WCF), Ma co Ca ei a Sil a (WCF),
Tom Coo emans (VO DOMG), Thomas Ma on (VO
DOMG), Nuha El inay (ICLEI), Ka he ine Peinha d
(ICLEI)
P ima y Con ac and
Email
Alessand o Asmundo (ITASIF)
[email p o ec ed]
Da e Due
30/04/2025
Da e Submi ed
-/-/-
File Name
D6.3 - CLIMATEFIT_D a whi e pape o
policymake s_de
S a us
Re iewed by (i
applicable)
CMCC
Sugges ed ci a ion
2
Table o con en s
In oduc ion ..............................................................................................................................................................................4
1. S a e o he a : an EU adap a ion policy analysis .......................................................................5
1.1. The EU's s a egy o adap a ion ..........................................................................................................5
1.2. The EU Sus ainable Finance F amewo k ..................................................................................... 8
1.2.1. EU Taxonomy, EU G een Bond S anda d, CSRD, SFDR ................................. 9
1.2.2. Risk-based o wa d-looking amewo k: Sol ency II and CRR/ CRD
III 12
1.3. Coo dina ion e o s be ween he EU and Membe S a es ........................................ 14
2. Mac o-economic analysis: Policies o adap a ion .................................................................. 16
2.1. Mac oeconomic impac s o clima e change isks.............................................................. 16
2.2. Rele an mac oeconomic policies .................................................................................................. 19
3. Mains eaming adap a ion inance: guidelines o policymake s and
p ac i ione s .......................................................................................................................................................................... 22
3.1. Policy Recommenda ions o EU Policymake s .................................................................. 23
3.2. Policy Recommenda ions o Na ional Go e nmen s .................................................... 25
3.3. Policy Recommenda ion o EU Policymake s and Na ional Go e nmen s
26
3.4. Policy Recommenda ions o Local Au ho i ies .................................................................. 28
Annex I | O e a ching ba ie s o adap a ion inance( ocus on ma ke ba ie s -
ma ke ailu es) .................................................................................................................................................................. 31
Annex II | The ole o public au ho i ies in unlocking p i a e in es men s .................... 32
Re e ences: ............................................................................................................................................................................ 37
Lis o Tables and Figu es
Figu e 1: CLIMATEFIT's posi ion wi hin he EU egula o y, policy, and p ojec
landscape 6
Figu e 2: Majo clima e isks o Eu ope and he u gency o ac on hem 7
Figu e 3: How does he EU Taxonomy i he sus ainable inance amewo k 10
Figu e 4: Clima e-Rela ed Risks, Oppo uni ies, and Financial Impac 17
3
Abs ac :
The pape aims o p o ide policy ecommenda ions o Public Au ho i ies (PAs) o
unlocking public and p i a e inancing. I analyses he ba ie s, d i e s, enable s, and
oppo uni ies in he egions in ol ed in CLIMATEFIT, p o iding guidelines o
policymake s. I also ou lines how unding om public sou ces can a ac addi ional
inancing om he p i a e sec o and in eg a e mac oeconomic impac s in o policy
design.
4
In oduc ion
Ambi ious mi iga ion and adap a ion ac ions mus add ess clima e change's
una oidable and ongoing impac s. This equi es a coo dina ed e o om
mul iple ac o s, such as local au ho i ies and inancial ma ke playe s,
pa icula ly in scaling up clima e adap a ion in es men s. Add essing he
challenges o adap a ion inancing goes beyond elying solely on public unding:
he p i a e sec o mus play a cen al ole in con ibu ing o p ac ical solu ions.
As s essed in deli e able 1.1, he Clima e Policy Ini ia i e’s “Global Landscape o
Clima e Finance 2023” epo e eals ha while adap a ion inance eached an
all- ime high o $63 billion, ep esen ing a 28% inc ease om 2019/2020, i emains
signi ican ly below he es ima ed annual need o USD 212 billion o de eloping
coun ies by 2030. Public ac o s accoun o 98% o adap a ion inance, wi h he
p i a e sec o 's con ibu ions being minimal and agmen ed. Challenges in
acking adap a ion inance, especially om he p i a e sec o and local
go e nmen s, impede a clea unde s anding o p og ess. These challenges
include de ining wha cons i u es adap a ion, linking clima e isks o e ec i e
measu es, he lack o impac me ics, and con iden iali y issues. Despi e hese
di icul ies, inc easing p i a e sec o in es men in adap a ion is c ucial, as i can
yield economic bene i s anging om 2 o 10 imes he in es men .
To con ibu e o b idging he adap a ion inancing gap, his pape aims o p o ide
policy ecommenda ions o Public Au ho i ies (PAs) a he EU, na ional, and
local le els on how o unlock, ca alyse, and le e age public and p i a e
inancing o new esilien in es men oppo uni ies. The insigh s gained
h ough he in e iews conduc ed unde CLIMATEFIT’s WP1 (S ock ake,
Unde s and, and Capi alise), we e he baseline o he cu en analysis.
The pape is di ided in o chap e s, sec ions, and subsec ions. Chap e 1 will
p esen he s a e o he a on adap a ion inance policies. S a ing wi h an
o e iew o he Eu opean Landscape (sec ion 1.1), he d a pape will
comp ehensi ely analyse he cu en EU adap a ion policy unde he Mission on
Adap a ion o Clima e Change (subsec ion 1.2.1), which is c ucial o he p ojec
ac i i ies, showcasing he p ojec e i o ies lea ning s o ies, and he bigge pic u e
o he in es men landscape o supply and demand app oaches in associa ion wi h
he Pa is Ag eemen and he 2030 Agenda o Sus ainable De elopmen .
The ollowing subsec ion (1.2.2) examines he EU Sus ainable Finance F amewo k,
which is cen ed a ound mapping he mac oeconomic aspec s o adap a ion
inancing. I speci ically examines he impac s o clima e change isks on he
b oade economy, conside ing he EU Taxonomy, he EU G een Bond S anda d,
he Co po a e Sus ainabili y Di ec i e (CSRD), and he Sus ainable Finance
Disclosu e Regula ion (SFDR). Expanding on EU egula ion a ge ing inancial
ma ke s, his pape in oduces addi ional measu es o speci ic Financing and
In es men En i ies (FIEs) ega ding he isk-based o wa d-looking amewo k
and he ole o he insu ance sec o in mi iga ing he escala ing uninsu ed
economic losses esul ing om clima e- ela ed haza ds. Subsec ion 1.2.2 will
assess he weaknesses and gaps in he cu en Eu opean egula o y amewo k,
5
iden i ying he necessa y a eas o imp o emen o de elop ecommenda ions
ha e ec i ely add ess exis ing egula o y sho comings.
The las sec ion (1.3) o he i s chap e will p esen he need o obus and
coo dina ed e o s.
A e ou lining his gene al amewo k, Chap e 2 del es in o he mac oeconomic
analysis o clima e adap a ion policies and he impac o clima e change
ansi ion and physical isks. Building on he s udy o he mac oeconomic isks
men ioned abo e (sec ion 2.1), he subsequen sec ion will iden i y he main
mac oeconomic isks ela ed o adap a ion and he co esponding mac o- iscal
policies adop ed o add ess hem, as ou lined in he adap a ion plans o he
coun ies ep esen ed in his p ojec (sec ion 2.2). The objec i e is o p o ide a
compa a i e o e iew o he measu es implemen ed o ensu e economic
esilience in he ace o clima e change.
Based on his analysis, he pape aims o p o ide a comp ehensi e o e iew o
he s a e o he a and iden i y po en ial con adic ions and sho comings.
Indeed, Chap e 3 p esen s an ex ensi e se o policy ecommenda ions aimed a
enhancing he e ec i eness o adap a ion inance ac oss mul iple le els o
go e nance, namely he EU, na ional and local le els. Se e al key a eas o analysis
in o med hese ecommenda ions: he assessmen o exis ing Eu opean and
na ional egula o y amewo ks ele an o mobilising inancial lows o clima e
adap a ion, as discussed in Chap e 1; he in-dep h e alua ion o mac oeconomic
isks ela ed o adap a ion and he co esponding mac o- iscal policies adop ed in
h ee o he p ojec ’s pa icipa ing coun ies, ou lined in Chap e 2; insigh s gained
om discussions held unde he Cha ham House Rule wi h inancial sec o ac o s
and key s akeholde s, and indings om o he wo k packages wi hin he p ojec ,
pa icula ly WP 1 cons i u e he basis o he policy ecommenda ions.
By in eg a ing hese di e se analy ical pe spec i es, he las chap e aims o equip
Eu opean, na ional, and local policymake s wi h a ge ed ecommenda ions o
s eng hen he enabling en i onmen o adap a ion inance. These
ecommenda ions ocus on add essing egula o y gaps, imp o ing inancial isk
managemen ela ed o clima e impac s, and enhancing coo dina ion be ween
public and p i a e ac o s o scale up in es men in clima e esilience. To achie e
his, i will iden i y laws, egula ions, p ocedu es, adminis a i e ac ions, incen i es,
and olun a y p ac ices adop ed by go e nmen s and o he ins i u ions, u ilising a
mul i-le el go e nance app oach. The assessmen will conside bo h di ec and
indi ec go e nmen al in e en ions, ensu ing a comp ehensi e e alua ion o
mechanisms ha acili a e he mains eaming o clima e inance.
1. S a e o he a : an EU adap a ion policy analysis
1.1. The EU's s a egy o adap a ion
The Eu opean Union is commi ed o enhancing clima e esilience h ough a
comp ehensi e amewo k, which, among o he hings, enables he e ec i e
s ee ing o capi al lows owa ds public and p i a e adap a ion p ojec s.
6
In 2021, he EU adop ed a New S a egy on Adap a ion o Clima e Change o
imp o e da a a ailabili y on clima e isks, implemen as e adap a ion
solu ions, and ensu e he sys ema ic in eg a ion o adap a ion in o policies
ac oss bo h he public and p i a e sec o s, including ag icul u e, anspo ,
powe in as uc u e, and insu ance, as well as enhance in e na ional measu es.
The s a egy emphasises he cen al ole o he p i a e sec o , highligh ing he
need o inc eased collabo a ion be ween he p i a e and public sec o s in
inancing adap a ion. To achie e his goal, he s a egy aims o suppo he p i a e
sec o in iden i ying isks and di ec ing in es men s owa d adap a ion and
esilience in e en ions, he eby a oiding maladap a ion and e aming
adap a ion as an in es men oppo uni y a he han a bu den. Addi ionally, i
seeks o enhance comp ehensi e and ha monised da a a ailabili y, c ucial o
making in o med clima e- ela ed decisions, by p omo ing common s anda ds o
eco ding and collec ing da a on clima e- ela ed losses and physical clima e isks.
A i al componen o his s a egy is he c ea ion o a Risk Da a Hub
1
, which will
cen alise da a egis a ion a he EU le el om bo h public and p i a e sec o s.
The S a egy also s esses he impo ance o ini ia i es wi hin he egula o y
amewo k on sus ainable inance, which will ac as a ca alys and incen i e o
channelling p i a e inancing owa ds enhancing clima e esilience.
Despi e a ious amewo k ini ia i es on adap a ion, i has been epo ed ha
Eu ope’s cu en policies and adap a ion ac ions a e no keeping pace wi h he
apidly g owing isks, conside ing he accele a ing pace o clima e change and
he inc easing se e i y o i s impac s, as highligh ed by he Clima e Risk
Assessmen (EUCRA) (see Figu e 1). The EUCRA unde sco es ha , in many cases,
inc emen al adap a ion will no be su icien . Since nume ous measu es o
imp o e clima e esilience equi e long- e m implemen a ion, u gen ac ion may
be needed e en o isks ha a e no ye c i ical.
In esponse o he EUCRA, he Commission’s communica ion “Managing clima e
isks - p o ec ing people and p ospe i y”
2
ou lines c i ical ac ions ha he EU and
i s membe s a es mus ake o manage be e hese inc easing clima e isks.
The Commission aims o equip socie y o e ec i e ac ion by, among o he hings,
c ea ing he igh p econdi ions o inancing clima e esilience.
1
The Risk Da a Hub aims o ans o m he EU’s agmen ed in o ma ion in o collec i e
knowledge; see, o mo e in o ma ion: h ps://da a.j c.ec.eu opa.eu/collec ion/id-00326.
2
Communica ion “Managing clima e isks - p o ec ing people and p ospe i y” COM(2024) 91 inal:
h ps://sho u l.a /uzqkI
7
Figu e 1: CLIMATEFIT's posi ion wi hin he EU egula o y, policy, and p ojec landscape
3
Figu e 1 illus a es how CLIMATEFIT is posi ioned, connec ing PA and FIEs wi h he
b oade EU Landscape wi h he de elopmen o Sus ainable Financing S a egies
ha can bene i om exis ing EU Taxonomy and Sma Ci ies Ma ke place ools.
3
Sou ce: ICLEI; CLIMATEFIT D6.6 Exploi a ion and Upscale Plan, 2023
8
.
Figu e 2: Majo clima e isks o Eu ope and he u gency o ac on hem
4
1.2. The EU Sus ainable Finance F amewo k
As an icipa ed in he CLIMATEFIT FIE Landscape Repo (p oduced unde T1.2),
one o he key d i e s o clima e inance has been EU policy and egula ion,
speci ically in he a ea o sus ainable inance. Such policies and egula o y
amewo ks ha e been expanding apidly and b oadening he ange o
s akeholde s, equi emen s, s anda ds, and guidance p o ided. The p ima y aim
o hese ini ia i es is o edi ec capi al lows owa d sus ainabili y- ela ed
ac i i ies, including clima e change ini ia i es and p ojec s, which a e essen ial o
he EU ollowing i s commi men o he Pa is Ag eemen and he 2030 Agenda o
4
Sou ce: EEA, 2024
15
Uni ed Na ions En i onmen al P og am Adap a ion Gap Repo (UNEP, 2022),
which in oduced his e m ega ding insu icien inance o adap a ion in
de eloping coun ies, he annual cos o adap a ion in de eloping coun ies alone
a e es ima ed o each be ween $160-340 billion by 2030. The UNEP Repo
sugges ed ha public budge s will no be able o add ess he inancing challenge
alone. A simila easoning can also be applied o he EU con ex . Indeed, he ecen
Repo by he Wo ld Bank and he Eu opean Commission on “Economics o
Disas e P e en ion and P epa edness in Eu ope”, es ima es adap a ion cos s o
be ween €15 billion o €64 billion up o he 2030s.
The epo also indica es ha “Risk da a, analy ical ools, and examples can guide
decision-making owa d high-p io i y a eas and enable a s a egic app oach ha
maximises bene i s o in es ing in esilience”. Thus, applying localised isk
assessmen s becomes c ucial due o inadequa e clima e da a and he
unce ain y su ounding he necessa y unding, gi en he unp edic able na u e o
clima e isks and impac s. These assessmen s ca ego ise clima e isks in o wo
main ypes: ansi ion isks, which s em om shi s owa d a low-ca bon economy,
such as policy changes, and physical isks, which a ise om he di ec impac s o
clima e change, including he inc eased equency o ex eme wea he e en s.
Clima e physical isks a ising om he impac o na u al haza ds (e.g. hu icanes,
loods, d ough s) on physical asse s lead o plan des uc ion, lowe i ms’
p oduc i e capaci y and ou pu , and lowe alue o i ms’ inancial con ac s. This,
in u n, nega i ely a ec s he alue o he po olio o inancial ac o s (e.g. banks,
insu ance, pension unds) who hold such con ac s. Fo ins ance, a i m whose
p oduc i e capi al is des oyed by se e e loods and has bo owed om a bank
may no be able o epay he in e es s and p incipal o he loan, a ec ing he
eco e y a e and he bank’s balance shee .
Clima e ansi ion isks s emming om a diso de ly ansi ion o a low-ca bon
economy, de ined as a si ua ion in which clima e policies (e.g. ca bon ax) and
egula ions a e implemen ed oo la e o each he clima e a ge s and canno be
ully an icipa ed by in es o s. In his con ex , high-ca bon i ms a e expec ed o
expe ience highe cos s and lowe e enues, gi ing ise o “ca bon s anded
asse s” (Lea on, 2011; Ploeg & Rezai, 2020; Cahen-Fou o e al., 2021). Ca bon
s anded asse s, in u n, can lead o signi ican adjus men s in asse p ices, wi h
po en ial implica ions on economic and inancial s abili y (G os e al., 2016;
Ba is on e al., 2017; S olbo a e al., 2018).
● Taking s ock
In eg a ing localised isk assessmen s in o na ional and egional in es men
planning is bene icial and essen ial o mains eaming clima e isk awa eness
in o business and in es men decision-making p ocesses. This in eg a ion
acili a es mo e in o med and e icien capi al alloca ion a egional and na ional
le els. I pa es he way o a smoo h ansi ion owa ds a low-ca bon and esilien
economy, ensu ing ha in es men s and s a egies a e well-aligned wi h
en i onmen al and economic sus ainabili y goals.
Fu he mo e, i is pa amoun o engage all pe inen s akeholde s ac oss a ious
le els o clima e go e nance, including hose especially ulne able o clima e
change. E ec i e adap a ion planning equi es he ac i e pa icipa ion o
16
s akeholde s a all le els, especially local au ho i ies, who a e o en on he on
lines o clima e impac s. These s akeholde s play pi o al oles in bo h planning
and execu ing adap a ion s a egies.
Ne e heless, wi hou he igh ins i u ional se ing ha can o e come
coo dina ion challenges among sec o s and le els o go e nmen , he adap a ion
inance gap is likely o pe sis . This gap is pa icula ly p onounced a lowe
go e nance le els, p ima ily esponsible o implemen ing mos adap a ion
measu es. He e, i is essen ial o highligh ha he Wo ld Bank and he Eu opean
Commission 2024 Repo unde lines ha " he u gency o de elop “adap a ion
pa hways” is pa amoun . These decision-making app oaches enable coun ies o
p epa e and ac amids unce ain y, in o med by cu en and u u e clima e isk"’
(WB and EC, 2024).
The e o e, Membe S a es shall implemen a comp ehensi e app oach o
clima e adap a ion policymaking. Coo dina ion a mul iple le els and in eg a ion
mechanisms a e essen ial o add ess gaps in go e nance, echnical, and inancial
capaci y among di e en go e nmen depa men s (ho izon ally), and ac oss all
le els o local au ho i ies, including egions and local adminis a ions ( e ically).
This is c ucial o ensu ing sus ainable and esilien clima e- isk-in o med planning
and in es men s.
The implemen a ion o such comp ehensi e app oach is u he ein o ced by
in e na ional amewo ks such as The Pa is Ag eemen , he in oduc ion o
clima e- ela ed laws, he Task Fo ce on Clima e-Rela ed Financial Disclosu es
(TCFD) ecommenda ions
18
and, mos ecen ly, he inc eased awa eness o he
isks and physical e ec s desc ibed in he Special Repo o he In e go e nmen al
Panel on Clima e Change (IPCC) on Global Wa ming 1.5°C. These amewo ks
unde sco e he need o ins i u ional eadiness, especially a he local le el, o
mains eam clima e- ela ed isks in o public planning and p i a e in es men
decisions. all guide he discussion a ound enhancing he ci y clima e go e nance
managemen p ac ices and sys ems, including he mos mino local and
egional au ho i ies. The ma e is how o bes enhance he capaci y and expe ise
necessa y o adminis a ion and implemen a ion, and o mains eam clima e,
physical, and ansi ion isks in o business and in es men decision-making.
2. Mac o-economic analysis: Policies o adap a ion
2.1. Mac oeconomic impac s o clima e change isks
The e is al eady signi ican e idence o an unse ling connec ion be ween
business and clima e change. Clima e change’s g owing impac d i es
unp eceden ed physical isks, such as ising sea le els and he inc eased
equency o ex eme wea he e en s. Clima e change isks and oppo uni ies
pe mea e mos economic sec o s and indus ies. Acco ding o he Eu opean
En i onmen Agency's 2024 epo on "Clima e change impac s, isks and
adap a ion", be ween 1980 and 2021, wea he - and clima e- ela ed ex emes
18
Task Fo ce on Clima e-Rela ed Financial Disclosu es (TCFD). h ps://www. sb- c d.o g/
17
caused economic losses es ima ed a €560 billion in he EU Membe S a es, o
which €56.6 billion om 2021. No ing ha ce ain clima e impac s, such as loss o
human li es, biodi e si y loss, o loss o cul u al asse s, a e di icul o alue in
mone a y e ms, damages om clima e change a e expec ed o se he global
economy back an es ima ed $38 illion a yea by 2049, wi h a likely ange o
be ween $19 illion and $59 illion, wa ned a io o esea che s om Po sdam
and Be lin in Ge many in a pee - e iewed s udy published in he jou nal Na u e
(Fo bes, 2024).
The wo main inancial isks associa ed wi h clima e change a e he physical
e ec s o a changing clima e and he isks associa ed wi h he shi o an
economy wi h ne -ze o emissions. An o ganisa ion's epu a ion, "social licence o
ope a e," and e en ual exposu e o li iga ion h ea s may be se iously jeopa dised
by a ailu e o manage hese isks. Analysis by he Sus ainabili y Accoun ing
S anda ds Boa d (SASB) indica ed ha 68 o 77 indus y sec o s ac oss he
economy a e subjec o ma e ial clima e- ela ed isks. A he same ime, i s
impac s a e di e en ia ed depending on ac o s such as he ele an ma ke and
geog aphy
19
. The in luen ial Task Fo ce on Clima e- ela ed Financial Disclosu es
(TCFD) has ecognised i al indus ial sec o s ha a e a ‘high isk’ o ma e ial
clima e- ela ed isk as no ed below:
● Financial se ices – banks, insu ance companies, asse owne s (including
pension unds) and asse manage s.
● Ene gy – oil and gas, coal, elec ic u ili ies.
● T anspo a ion – ai eigh , passenge anspo , ma i ime, ail, ucking,
au omo i e, and componen s.
● Ma e ials and buildings – me als and mining, componen s, cons uc ion
ma e ials, capi al ma e ials, eal es a e managemen and de elopmen .
● Ag icul u e, ood and o es p oduc s – be e ages, ag icul u e, packaged
oods and mea s, pape and o es p oduc s.
● Heal h - ma e ial o o ganisa ions in ol ed in heal h and human se ices.
As no ed in he p e ious sec ion, acu e isks connec ed o an inc ease in he
equency and se e i y o ex eme wea he occu ences a e included in he
ca ego y o physical isks, and hey compound o e ime. They can inc ease he
dange o physical damage o p ojec s, powe plan s, and equipmen , and hei
cos s can become signi ican ly wo se unde high emissions scena ios. Physical
isks signi ican ly impac supply chains, human heal h, he in eg i y o he buil
en i onmen , and ecosys em loss, esul ing in inc eased cos s and educed
e enues.
Clima e change- ela ed physical isks may also impac insu ance co e age,
esul ing in consequences o uninsu ed loss and he need o addi ional capi al
expendi u es. Dis up ions o supply ne wo ks can also be caused by se e e
wea he e en s, such as in ense p ecipi a ion esul ing in inland looding, which
19
Sus ainabili y Accoun ing S anda ds Boa d, 2021, Clima e Risk Technical Bulle in, A ailable
online: h ps://www.sasb.o g/wp-con en /uploads/2021/05/Clima e-Risk-Technical-
Bulle in2021-042821.pd
18
can po en ially dis up supply chains and /o ope a ions and signi ican ly impac
income.
A he same ime, ansi ion isks can include policy and egula o y esponses
(such as emissions educ ion laws, ade laws and a i s, p uden ial egula ion and
heigh ened planning and building codes), echnological de elopmen s (in a eas
such as enewable ene gy and elec ic ehicles) and shi s in s akeholde
p e e ences (including o in es o s, insu e s, cus ome s, and he communi y)
20
.
Figu e 4: Clima e-Rela ed Risks, Oppo uni ies, and Financial Impac
21
20
Clima e isk go e nance guide: An in oduc o y esou ce o di ec o s on clima e isk
go e nance. ACID, 2021. A ailable Online: h ps://www.aicd.com.au/ isk-
managemen / amewo k/clima e/clima e- isk-go e nance-guide.h ml
21
TCFD: h ps://asse s.bbhub.io/company/si es/60/2021/10/FINAL-2017-TCFD-Repo .pd
19
2.2. Rele an mac oeconomic policies
Building on he analysis o he mac oeconomic isks men ioned abo e, he
ollowing sec ion aims o iden i y he main mac oeconomic isks ela ed o
adap a ion and he speci ic policies esponses adop ed o add ess hem in he
adap a ion plans o CLIMATEFIT’s leade e i o ies (I aly, Romania, F ance, and he
Flemish egion). While many esponses in ol e iscal policies, o he ypes o policy
measu es a e also conside ed whe e ele an . The objec i e is o p o ide a
compa a i e o e iew o how di e en egions a e wo king o s eng hen
economic esilience in he ace o clima e change.
In his D6.3 we analysed he plans a ailable on he Clima e-ADAPT websi e, along
wi h he I alian adap a ion plan. The na ional plans o Belgium, and Romania ha e
no been published, bu an analysis o he egional adap a ion plans o Flande s
(Belgium) and Alba Iulia (Romania) will be included in D6.4.
I aly: Piano Nazionale di Ada amen o ai Cambiamen i Clima ici (PNACC), Minis e o
dell’Ambien e e della Sicu ezza Ene ge ica, Janua y 2023
22
Mac oeconomic isks
Mac oeconomic policies
High adap a ion cos s o key sec o s
(In as uc u e, ag icul u e, wa e
managemen , and u ban esilience
equi e signi ican in es men s)
EU Mul iannual Financial F amewo k
(2021-2027) and Reco e y and
Resilience Facili y (RRF) alloca e unds
o clima e adap a ion; Public-P i a e
Pa ne ships (PPPs) o inance
adap a ion p ojec s
Reduced economic compe i i eness
(Sec o s unable o adap o clima e
isks may su e p oduc i i y losses)
Tax incen i es and subsidies o
businesses in es ing in clima e-
esilien echnologies and p ac ices;
G een iscal e o m o suppo low-
ca bon economic ans o ma ion
Inc eased iscal p essu e om
clima e- ela ed disas e s (Highe
public spending on eme gency
esponse and eco e y)
Disas e isk educ ion unding om EU
and na ional budge s; In eg a ion o
clima e adap a ion in o iscal planning
o p e en eac i e spending
Regional economic dispa i ies
(Une en adap a ion capaci y leads o
economic imbalances be ween
egions)
EU Cohesion Funds and Jus T ansi ion
Mechanism o suppo clima e
adap a ion in ulne able egions
Rising insu ance cos s and inancial
ins abili y (Clima e isks inc ease
insu ance claims and inancial ma ke
exposu e)
Clima e isk assessmen s in eg a ed
in o inancial egula ions; Incen i es o
clima e- esilien insu ance
mechanisms and ca as ophe bonds
Highe public heal h expendi u e
(Hea wa es, new diseases inc ease
heal hca e cos s)
Na ional heal h adap a ion s a egies
unded h ough EU and na ional
budge s; In es men s in public heal h
in as uc u e o clima e esilience
Dis up ions in in as uc u e and
supply chains (Ex eme wea he
In es men s in clima e- esilien
in as uc u e h ough na ional and EU
22
h ps:// a.mi e.go .i /i -IT/Ogge i/Documen azione/7726/11206
20
e en s a ec ing anspo , ene gy, and
indus y)
unds; Sma g id mode nisa ion and
adap a ion o anspo ne wo ks
Po en ial loss o p i a e in es men
(Unce ain y abou clima e isks
discou ages long- e m in es men s)
C ea ion o clima e isk disclosu e
amewo ks; Financial incen i es o
p i a e in es men s in adap a ion
p ojec s
F ance: T oisième Plan na ional d’adap a ion au changemen clima ique. 2024-
2028
23
, consul a ion documen
Mac oeconomic isks
Mac oeconomic policies
High adap a ion cos s o key sec o s
(In as uc u e, ag icul u e, wa e
managemen , u ban esilience equi e
signi ican in es men s)
Inc eased public inancing h ough he
Ba nie Fund and G een Fund o
adap a ion p ojec s; In eg a ion o
clima e adap a ion in o na ional
budge planning
Dec eased economic
compe i i eness (Lack o adap a ion
in es men s could make businesses
and indus ies less compe i i e)
Tax incen i es and subsidies o
companies in es ing in adap a ion
echnologies; In eg a ion o clima e
esilience in o business planning
Rising insu ance cos s and inancial
ins abili y (Inc eased exposu e o
clima e isks leads o highe insu ance
p emiums and inancial ma ke
dis up ions)
Es ablishmen o a Clima e Risk
Insu ance Obse a o y o moni o and
egula e insu ance ma ke s; S a e-
backed insu ance mechanisms o
ensu e a o dabili y
Inc eased public spending on clima e
disas e s (Floods, d ough s, and
hea wa es inc ease go e nmen
expendi u es o eme gency esponse
and eco e y)
S eng hening disas e isk
p e en ion policies; Expansion o he
Ba nie Fund o suppo communi y-
le el adap a ion p ojec s
Dis up ions in c i ical in as uc u e
and supply chains (T anspo , ene gy,
and wa e ne wo ks a ec ed by
ex eme wea he e en s)
La ge-scale public in es men s in
clima e-p oo in as uc u e, including
esilience planning o anspo and
ene gy sec o s
Regional economic dispa i ies
(Ce ain egions, mainly coas al and
o e seas e i o ies, ace highe
adap a ion cos s)
EU Cohesion Funds and na ional
inancing mechanisms o suppo
egional adap a ion ini ia i es and
in as uc u e esilience
Highe heal hca e expendi u es
(Hea wa es, ec o -bo ne diseases,
and ai pollu ion inc ease heal h cos s)
Expansion o public heal h adap a ion
p og ams, in es men s in cooling
in as uc u e o hospi als and u ban
a eas
Impac on labou p oduc i i y
(Hea wa es and ex eme wea he
educe wo ke e iciency and inc ease
heal h isks)
Implemen a ion o wo kplace
adap a ion policies, including
adjus men s o wo king hou s du ing
ex eme hea
23
h ps://consul a ion-pnacc.ecologie.gou . /si es/de aul / iles/2024-
10/Documen _de_p esen a ion_du_PNACC_3.pd
21
Tou ism sec o ulne abili ies
(Coas al and win e ou ism a ec ed by
clima e isks)
Suppo o clima e- esilien ou ism
s a egies, inancial aid o adap a ion
in a ec ed egions
Po ugal: Na ional Adap a ion Plan (P-3AC), 2019
24
Mac oeconomic isks
Mac oeconomic policies
High adap a ion cos s o key sec o s
(In as uc u e, ag icul u e, wa e
managemen , and u ban esilience
equi e signi ican in es men s)
Po ugal 2020 and POSEUR
(Sus ainabili y and E icien Use o
Resou ces P og am) p o ide inancial
suppo o clima e adap a ion
p ojec s
Dec eased economic
compe i i eness (Indus ies and
businesses s uggling o adap may
ace p oduc i i y and inancial losses)
Tax incen i es and subsidies o
companies in es ing in adap a ion
echnologies; in eg a ion o clima e
esilience s a egies in o economic
policies
Inc eased iscal p essu e om
clima e- ela ed disas e s (Floods,
d ough s, and wild i es inc ease public
expendi u es)
Fundo Ambien al (En i onmen al
Fund) suppo s disas e isk
p e en ion and eme gency esponse
measu es
Rising insu ance cos s and inancial
ins abili y (Inc eased exposu e o
clima e isks leads o highe insu ance
p emiums)
C ea ion o clima e isk assessmen
mechanisms o inancial ins i u ions
and insu ance ma ke s
Dis up ions in c i ical in as uc u e
and supply chains (Ex eme wea he
e en s a ec anspo , ene gy, and
indus y)
In es men s in clima e- esilien
in as uc u e h ough EU and
na ional unding mechanisms
Regional economic dispa i ies
(Ce ain egions, especially coas al
and a id zones, ace highe adap a ion
cos s)
EU Cohesion Funds and na ional
inancing mechanisms o suppo
adap a ion in ulne able egions
Highe heal hca e expendi u es
(Hea wa es, ec o -bo ne diseases,
and ai pollu ion inc ease heal h
sys em cos s)
Na ional heal h adap a ion
p og ams, in es men s in clima e-
esilien heal hca e in as uc u e
Impac on labou p oduc i i y (Hea
s ess and ex eme wea he e en s
educe wo ke e iciency)
Implemen a ion o wo kplace
adap a ion policies, including
clima e-p oo ed wo king condi ions
Tou ism sec o ulne abili ies
(Coas al e osion and educed win e
ou ism impac e enues)
Financial suppo o clima e- esilien
ou ism s a egies and adap a ion o
cul u al he i age si es
The analysis o I aly, F ance, and Po ugal’s adap a ion plans highligh s common
mac oeconomic isks, including high adap a ion cos s, inc eased iscal p essu e
om clima e- ela ed disas e s, egional economic dispa i ies, and ising insu ance
24
h ps:// iles.dia ioda epublica.p /1s/2019/08/14700/0001000045.pd
22
cos s. All h ee coun ies adop simila mac o- iscal policies, elying on EU and
na ional unds, ax incen i es, disas e isk educ ion p og ams, and in es men s in
clima e- esilien in as uc u e.
● Taking s ock
Se e al gaps and limi a ions eme ge om he analysis. One majo challenge is he
lack o p ecise quan i ica ion o mac oeconomic impac s in he adap a ion plans.
While all h ee coun ies acknowledge he po en ial economic dis up ions caused
by clima e change, hey a ely p o ide de ailed inancial es ima es o how hese
isks could a ec GDP, employmen , o long- e m economic s abili y. Wi hou
such da a, i becomes di icul o assess whe he he p oposed iscal policies a e
su icien ly obus o add ess he scale o he challenge.
Ano he missing elemen is a clea s a egy o p i a e sec o engagemen beyond
ax incen i es. While businesses a e expec ed o play a ole in adap a ion, he e is
li le men ion o mechanisms o mobilise p i a e in es men s in esilience p ojec s
o o encou age inancial ins i u ions o in eg a e clima e isks in o hei long- e m
in es men s a egies. Gi en ha public unding alone is unlikely o co e all
adap a ion needs, s onge public-p i a e pa ne ships and inancial ins umen s
(such as g een bonds o adap a ion- ocused in es men unds) could enhance he
e ec i eness o hese plans.
Addi ionally, he plans end o ocus mo e on sho - and medium- e m inancing
a he han on de eloping a long- e m mac o- iscal s a egy o adap a ion.
Clima e change is a pe manen and e ol ing isk, ye he iscal measu es ou lined
o en ely on empo a y unding mechanisms (such as EU budge cycles) a he
han es ablishing s uc u al and pe manen inancial amewo ks ha could ensu e
a con inuous low o esou ces o adap a ion beyond 2030.
Finally, social and employmen policies linked o adap a ion ecei e limi ed
a en ion. While some measu es add ess labou p oduc i i y isks due o hea
s ess, he e is li le discussion on how adap a ion policies will in e ac wi h job
c ea ion, social p o ec ion, o wo k o ce e aining in sec o s a ec ed by clima e
change. A mo e in eg a ed app oach could ensu e ha adap a ion s a egies no
only p o ec economies om clima e- ela ed dis up ions bu also con ibu e o
inclusi e and sus ainable economic g ow h.
3. Mains eaming adap a ion inance: guidelines o
policymake s and p ac i ione s
This chap e p esen s a se o policy ecommenda ions designed o help make
adap a ion inance a eali y and close he adap a ion inance gap ac oss mul iple
le els o go e nance. These ecommenda ions a e in o med by se e al key a eas
o analysis: he assessmen o exis ing Eu opean and na ional egula o y
amewo ks ele an o mobilising inancial lows o clima e adap a ion, as
discussed in Chap e 1; he in-dep h e alua ion o mac oeconomic isks ela ed o
adap a ion and he co esponding mac o- iscal policies adop ed in h ee o he
23
p ojec ’s pa icipa ing coun ies, ou lined in Chap e 2; insigh s gained om
discussions held unde he Cha ham House Rule wi h inancial sec o ac o s and
key s akeholde s; and indings om o he wo k packages wi hin he p ojec ,
pa icula ly WP 1.
By in eg a ing hese di e se analy ical pe spec i es, his chap e aims o equip
policymake s a he Eu opean, na ional, and local le els wi h a ge ed
ecommenda ions o shape an enabling en i onmen o adap a ion inance.
These ecommenda ions ocus on add essing egula o y gaps, imp o ing inancial
isk managemen ela ed o clima e impac s, and enhancing coo dina ion be ween
public and p i a e ac o s o scale up in es men in clima e esilience.
3.1. Policy Recommenda ions o EU Policymake s
A he Eu opean le el, adap a ion inance equi es a cohe en and in eg a ed
app oach ha aligns exis ing egula o y amewo ks, inancial ins umen s, and
policy objec i es. Gi en he c oss-bo de na u e o clima e isks and he ole o he
EU in se ing common inancial and sus ainabili y s anda ds, Eu opean ins i u ions
play a c ucial ole in c ea ing an in es men - iendly en i onmen o adap a ion.
This sec ion ou lines key ecommenda ions o e ine EU policies and inancial
mechanisms o be e suppo adap a ion in es men s ac oss membe s a es.
A) Enhancing anspa ency o clima e adap a ion in es men s
As highligh ed in WP 1.1, one o he key ba ie s o scaling up clima e adap a ion
in es men s is he lack o s anda disa ion in ESG da a. The absence o clea ,
ha monised amewo ks o adap a ion- ela ed disclosu es limi s ma ke
anspa ency, making i di icul o in es o s o assess he esilience bene i s o
adap a ion in es men s. In es o s, hough conce ned abou he signi ican ecen
changes in inancial egula ions ela ed o sus ainable inance and clima e isk
disclosu e, we e suppo i e o u he and mo e s ingen egula ion o all ypes
( iscal, inancial and indus y) ha equi e all businesses o disclose and assess
hei clima e isks and impac s, os e ing anspa ency and accoun abili y in
clima e- ela ed in es men s. Cu en ly, he EU sus ainable inance amewo k
places a disp opo iona e emphasis on isk exposu e, which could discou age
inancial lows o sec o s and egions mos in need o adap a ion unding, as i
di e s a en ion away om he po en ial o esilience-building. To enhance he
e ec i eness o he EU sus ainable inance amewo k in suppo ing clima e
adap a ion, disclosu e mechanisms mus highligh bo h he isks and he bene i s
o adap a ion in es men s.
To achie e his objec i e, EU ins i u ions and supe iso y bodies should de elop
clea guidelines and suppo ing ma e ials o help inancial ac o s
sys ema ically in eg a e adap a ion conside a ions in o hei decision-making
p ocesses. These esou ces should:
Cla i y bes p ac ices o epo ing on adap a ion bene i s, ensu ing
inancial disclosu es e lec how in es men s enhance esilience
a he han solely emphasising exposu e o clima e isks.
24
In oduce s anda dised me ics o assess and compa e adap a ion
e o s, imp o ing in es o s' abili y o e alua e he long- e m
sus ainabili y and e ec i eness o adap a ion in es men s.
Ensu e alignmen wi h exis ing EU egula o y amewo ks, such as he
Co po a e Sus ainabili y Repo ing Di ec i e (CSRD) and he EU
Taxonomy, o p omo e cohe ence and usabili y ac oss inancial
ma ke s.
Possibly, in eg a e adap a ion e o s wi hin ansi ion plans, which
p o ide a po en ial mechanism o p o iding anspa ency abou how
epo ing en i ies plan o adap o he impac s o a changing clima e
25
.
The analysis o ansi ion plans should also conside egional ixed
e ec s (I alian banks, o ins ance, a e pushing o s uc u ed ansi ion
plan analyses ha also conside egional a ia ions)
26
.
The EU can imp o e ma ke con idence in adap a ion in es men s by
implemen ing simila mechanisms and d i ing capi al owa d esilience-
enhancing ini ia i es.
B) Expand he EU Sus ainable Finance Taxonomy o adap a ion
The EU Taxonomy plays a c ucial ole in di ec ing in es men s owa ds sus ainable
ac i i ies. Howe e , while i has been e ec i ely olled ou o clima e mi iga ion,
i s adap a ion amewo k emains agmen ed and lacks he necessa y de ail o
suppo in es men s in adap a ion esilience. Di e en s akeholde s
27
s essed he
necessi y o de eloping a mo e in eg a ed and comp ehensi e app oach o
adap a ion o he EU Taxonomy. EU ins i u ions should:
es ablish a de ailed amewo k ha explici ly add esses a b oade ange o
clima e isks beyond wa e - ela ed isks, including ex eme wea he e en s
such as s o ms and hea wa es. Expanding he scope o adap a ion c i e ia
o include esilience agains di e se clima e h ea s would ensu e ha
inancial ins umen s can suppo in es men s in in as uc u e and sys ems
ha mi iga e he impac o such e en s.
de elop a mo e g anula classi ica ion sys em o adap a ion esilience by
expanding he EU Taxonomy, which should enable ele an s akeholde s o
iden i y which ac i i ies a e "adap a ion esilience-enabling." Cu en ly,
Taxonomy is no de ailed enough o suppo in es men s o adap a ion
25
. T ansi ion plans we e de eloped o add ess an analogous issue o clima e mi iga ion. The
UK’s T ansi ion Plan Task o ce’s Adap a ion Wo king G oup has al eady p oduced guidance on
how adap a ion can be in eg a ed wi hin ansi ion plans, o e ing a po en ial bluep in o he EU
o embed adap a ion disclosu es in o inancial epo ing amewo ks.
26
Resul s om he p i a e wo kshop on adap a ion inance o ganised by he CLIMATEFIT p ojec
as pa o xx .The e en , held unde Cha ham House ules on 19 h Ma ch 2025, b ough oge he
a ound 25 inancial and in es men en i ies o a closed-doo discussion in which pa icipan s will
sha e insigh s, exchange expe iences on how o o e come he main ba ie s o in es ing in
adap a ion p ojec s, and iden i y new oppo uni ies in adap a ion in es men s.
27
Resul s om he p i a e wo kshop on adap a ion inance o ganized by he CLIMATEFIT p ojec
as pa i s o capaci y building se ies. The e en , held unde Cha ham House ules on 19 h Ma ch
2025, b ough oge he a ound 25 inancial and in es men en i ies o a closed-doo discussion in
which pa icipan s sha ed insigh s, exchanged expe iences on how o o e come he main ba ie s
o in es ing in adap a ion p ojec s, and iden i y new oppo uni ies in adap a ion in es men s.
31
Annex I | O e a ching ba ie s o adap a ion inance
( ocus on ma ke ba ie s -ma ke ailu es)
Ba ie
Desc ip ion
Lack o knowledge
o ad ice
In es o s lack expe ise in clima e adap a ion, making i
challenging o assess in es men s and iden i y echnical
solu ions. O he ba ie s include a lack o unde s anding
o clima e change impac s and bes p ac ices.
Addi ionally, compe i ion wi h mi iga ion echnologies
hinde s he adop ion o adap a ion measu es (Glo e &
G anbe g, 2020).
Uns able policy
Changing egula ions and uns able policy amewo ks
hinde in es o con idence and access o sus ainable
inance. In es o s in ol ed in CLIMATEFIT exp essed
conce ns abou luc ua ing clima e policy and changes
in ules on sus ainable inance, disclosu e, and clima e
isk.
Limi ed p ojec s
High isk and low e u ns de e in es men in adap a ion
p ojec s. Iden i ying inancially easible adap a ion
ini ia i es is challenging due o un eliable cash lows
and e enue s eams. Adap a ion p ojec s also ace
compe i ion om well-es ablished low-ca bon and
mi iga ion in es men s. The Adap a ion In es men
Landscape (D1.1) highligh s he need o imp o ed
ins i u ional amewo ks o acili a e p ojec bundling
and enhance isk- e u n a ios.
Lack o ESG da a
s anda disa ion
Da a gaps and he absence o s anda dised ESG me ics
make measu ing and mone ising adap a ion bene i s
di icul . Unlike low-ca bon echnologies, adap a ion-
ela ed inancial pe spec i es and me ics emain
unde de eloped, limi ing in es o con idence
(Adap a ion In es men Landscape, D1.1).
Low e u ns
Adap a ion is o en seen as a public good a he han a
p o i able in es men , leading o limi ed inancial
in e es . Mone ising adap a ion emains challenging and
is no widely pe cei ed as an a ac i e pa o
in es men po olios.
32
Annex II | The ole o public au ho i ies in unlocking p i a e
in es men s
Role o
Public
Au ho i y
Desc ip ion
Examples
Enable
When p i a e
in es men s a e
impossible due o
egula o y o
s uc u al ba ie s,
he public au ho i y
c ea es new o
modi ies exis ing
amewo ks o
enable in es men s.
- Changing o c ea ing egula ions and
legisla ion
- Es ablishing go e nance s uc u es
- Res uc u ing au ho isa ions
- Launching subsidy calls
- Imposing new obliga ions o s anda ds
Facili a o
When amewo ks
exis bu ba ie s
emain, he public
au ho i y p o ides
suppo o educe o
emo e hese
ba ie s.
- P o iding in o ma ion (websi es,
guidelines, aining, webina s)
- C ea ing mul i-s akeholde pla o ms
- O e ing inancial incen i es (subsidies)
- Imp o ing sys em accessibili y (mo e
s aigh o wa d na iga ion o o ms)
- Suppo ing p ojec s h ough
adminis a i e o inancial assis ance
Awa eness
Raise
When s akeholde s
a e unawa e o lack
u gency, he public
au ho i y inc eases
awa eness and
encou ages
engagemen .
- O ganizing awa eness campaigns
- Encou aging s akeholde in ol emen
o inc ease owne ship and commi men
En huse &
Inspi e
The public au ho i y
incen i ises
pa icipa ion by
o e ing indi ec
bene i s.
- Enhancing s akeholde image
(ce i ica es)
- Showcasing o ganisa ions as
ambassado s
- P o iding inancial bene i s (p emiums,
ax educ ions)
- G an ing access o speci ic sys ems
(e.g., ading sys ems)
Examples om Flande s:
1. The ool G oenblauwpeil (“g een blue le el”) klimaa adap a ie ools
(“clima e adap a ion ools”)
The public au ho i y o Flande s was one o he leading pa ne s in se ing up he
ool G oenblauwpeil. This ool allows ci ilians and p o essionals o en e da a on
plo s and p ojec s, allowing hem o sco e hem on hei “blue” and “g een”
le els. The ool ends wi h a gene al sco e o he plo o p ojec and p o ides
33
se e al ecommended examples o measu es i he use wishes o op imise hei
sco e. The Vlaamse Milieu Maa schappij (“Flemish En i onmen Agency”) p o ides
a ool, klimaa adap a ie ools, wi h a simila se -up a a p ojec le el.
This is an example o an au ho i y aking on he combined ole o enable and
acili a o . The go e nmen se s up an en i ely new sys em and p o ides mo e
conc e e in o ma ion o p ojec ini ia o s o make hei p ojec s mo e adap ed o
clima e change.
2. The G een Deal collabo a i e p ojec s in Flande s
The Flemish G een Deals (which should no be mis aken o he Eu opean G een
Deals) a e ini ia i es o he Flemish Go e nmen o make businesses and sec o s
“g eene ” wi h p ojec s on wa e , ood, ci cula economy, adap a ion, e c. These
a e olun a y, ambi ious ag eemen s be ween companies, o ganisa ions and he
go e nmen o ealise sus ainable ac ions oge he in he sho e m. This
collabo a ion ensu es ha businesses a e be e suppo ed when hey wan o
in es o become “g eene ”.
This case is an example o a public au ho i y aking up he ole o acili a o , and i
also aises awa eness by acili a ing he join in ol emen o di e en
s akeholde s.
3. The policy ins umen “s edenbouwkundige las en” (u ban de elopmen
ees)
Ac i i ies ha easonably impac he en i onmen may only be ca ied ou in
Flande s i a pe mi is ob ained. The au ho i y o app o e his pe mi lies wi h he
public go e nmen , which is also au ho ised o impose addi ional obliga ions in
ce ain ci cums ances. One o hese obliga ions is “s edenbouwkundige las en”
(u ban de elopmen ees). They o igina e om he bene i a bene icia y de i es
om hei pe mi and he addi ional asks a go e nmen mus assume by
implemen ing his pe mi . This ‘ ee’ can ake a inancial o m o he o m o
addi ional ac i i ies ha ha e o be pe o med on he plo in ques ion by he
bene icia y. I a inancial ee is imposed on a pe mi , he bene icia y o he license
mus pay a ce ain amoun o money o he public au ho i y. The au ho i y, in
e u n, can only spend he collec ed money on he implemen a ion o spa ial
policy, including clima e adap a ion p ojec s. The Flemish go e nmen has se up
his legal amewo k, and he ‘ ees’ can be applied by he local, p o incial and
egional go e nmen s in hei pe mi policy. This case is an example o a
go e nmen aking up an enabling ole by c ea ing a amewo k and imposing a
new sys em.
4. Tax on wa e pollu ion in Flande s
A ax is a measu e by which he go e nmen imposes a compulso y con ibu ion
o i s gene al expendi u e. Agains a ax, he e is no indi idually iden i iable
pe o mance by he go e nmen . So, he e mus always be some public in e es
in imposing a ax. Anyone who consumes wa e om a wa e company o hei
own wa e ca chmen o discha ges wa e mus pay a was ewa e ea men ee.
Households usually pay his con ibu ion h ough he wa e bill, while la ge
consume s mus submi a decla a ion o hei wa e e e y yea . This way, bo h
amilies and businesses indi ec ly in es in cleane wa e . This case is an example
o a public au ho i y aking up he enable ole by imposing an obliga ion on wa e
consume s o pay o was ewa e ea men .
34
5. Financial compensa ions in Flande s
Some imes, he go e nmen can es ic p i a e plo s, such as limi ing cons uc ion
igh s, because he plo is in a looding zone. In such cases, he go e nmen is
obliga ed o inancially compensa e he plo owne o such imposed
es ic ions. Some examples a e:
● e goeding ijwillige bed ij s econ e sie (compensa ion o olun a y
business con e sion);
● compense ende e goeding o e s omingsgebied (compensa ion o
looding zone);
● compense ende e goeding na uu in ich ing (compensa ion o na u e
de elopmen ).
This case is an example o a public au ho i y aking up he enable ole by imposing
an obliga ion and se ing up a sys em as compensa ion.
6. Pu chase obliga ions in Flande s
In some ins ances, he owne o a plo can oblige he go e nmen o pu chase
i . This can happen when he go e nmen imposes plans o ac i i ies ha could
se e ely comp omise exis ing business ope a ions o plo s wi hin designa ed
na u e a eas. Some examples a e:
● koopplich landin ich ing (pu chase obliga ion land de elopmen );
● koopplich na uu (pu chase obliga ion na u e);
This case is an example o a public au ho i y aking up he ole o enable by se ing
up a amewo k o compensa e o he s.
7. Budge unds in Flande s
Gene ally, a go e nmen ’s esou ces a e collec ed and spen globally. This means
ha all agg ega e e enue is ea ma ked o agg ega e expendi u es. An
excep ion o his p inciple is p o ided in he o m o budge unds. In his way,
speci ic e enue can be alloca ed o speci ic expendi u es. This allows he
go e nmen , o example, o alloca e money o a und ha can only be spen on
clima e adap a ion p ojec s. The money in es ed by he go e nmen in hese
p ojec s can, in u n, ac i a e p i a e capi al in es men s.
This case is an example o a public au ho i y aking up he ole o enable by se ing
up a egula o y amewo k o money o be spen only on a speci ic expendi u e,
such as clima e adap a ion.
8. The web page on G een economics in Flande s
The Depa men o En i onmen & Spa ial De elopmen has a web page
dedica ed o g een economics and he depa men 's ela ed ac i i ies and
ope a ions. The web page con ains mo e in o ma ion on he opic and links o o he
websi es, p ojec s and ini ia i es. Sha ing his in o ma ion can inspi e o he s o
in es in p ojec s con ibu ing o he g een economy.
This case is an example o a public au ho i y acili a ing by p o iding mo e
in o ma ion and edi ec ing o o he ini ia i es.
35
9. G ondenbank (land bank) in Flande s
A land bank can be conside ed an in en o y o di e en plo s owned by he
go e nmen . The go e nmen can use hese plo s o ade wi h o he plo s in
p ojec s. This can be iewed as an al e na i e o inancial esou ces used o buy
and sell plo s. The Flemish go e nmen es ablished his amewo k bu can also
be es ablished on o he le els, such as he local le el.
This case is an example o a public au ho i y aking up he ole o an enable by
se ing up he egula o y amewo k.
10. Adminis a i e ine in Flande s
The o ende in an en i onmen al in ingemen , en i onmen al c ime o u ban
planning in ingemen will ecei e an adminis a i e ine. This will inc ease he
go e nmen ’s esou ces, which i may la e in es in, such as clima e adap a ion.
This case is an example o a public au ho i y aking up he ole o enable by
imposing an obliga ion on o ende s o he legisla ion in o ce.
11. The Blue Deal in Flande s
The Blue Deal is an ambi ious p og amme ha ackles wa e sca ci y and d ough
on he g ound. I comp ises di e se ac ions and ac i i ies. The Flemish go e nmen
unded he p og amme h ough public unding. In addi ion o he public unding,
he a ious ac ions a e inancially suppo ed by in es men s om (ag icul u al)
companies, local go e nmen s, sec o o ganisa ions, knowledge ins i u ions
and non-p o i associa ions.
This case is an example o a public au ho i y aking up he ole o enable by se ing
up he egula o y amewo k.
12. Subsidies om he Flemish go e nmen
The Depa men o En i onmen & Spa ial De elopmen uses subsidies o
implemen i s policies. Ce ain subsidies issued by he Depa men a e in ended
o physical in es men s in in as uc u e and ealising p ojec s on he g ound. In
ecen yea s, se e al subsidy ini ia i es ha e been launched on clima e adap a ion,
g een-blue landscaping, and biodi e si y, as well as dealing wi h and suppo ing
SMEs o econcile hei business and economic ac i i ies wi h clima e-adap i e
and na u e-based measu es. These subsidies a e di ec ed owa ds p o inces,
local go e nmen s, esea ch ins i u ions, na u e and en i onmen al associa ions,
landscape o ganisa ions and he p i a e sec o in ealising hese a ious p ojec s.
These subsidies a e mainly o ganised on a one-o basis. Some examples o such
subsidies a e:
● G oenblauwe doo ade ing in de bebouwde uim e (“G een-blue eining in
u ban a eas”). This subsidy is pa o he Flemish Blue Deal, and he Flemish
go e nmen ecei ed inancial suppo om he Eu opean Reco e y and
Resilience Facili y. Subsidies we e a ibu ed o local go e nmen s ha
applied o he call wi h ambi ious clima e adap a ion and de elopmen
p ojec s.
36
● G oenblauwe pa els (“G een-blue pea ls”). Like he example abo e, his
subsidy is pa o he Flemish Blue Deal. I has a simila ocus bu a ge s
p ojec s on a smalle scale. The subsidy a ge s a ious a ge g oups, such
as local go e nmen s, non-p o i o ganisa ions, in e -communal
associa ions, e c.
● KMO’s in een omge ing oo de oekoms (“SMEs in an en i onmen o he
u u e”). Wi h his subsidy, he Flemish go e nmen wan s o encou age
SMEs o combine hei business and economic ac i i ies wi h clima e-
adap i e and na u e-based measu es. This call was aimed a o ganisa ions,
associa ions, local au ho i ies, companies, and pa ne ships be ween hem.
This is an example o a public au ho i y aking up he ole o acili a o , as i
acili a es he implemen a ion o clima e adap a ion p ojec s by p o iding
inancial suppo o ealise he p ojec s.
37
Re e ences:
● (2024) Economics o Disas e P e en ion and P epa edness in Eu ope. WB
and EC. h ps://www.wo ldbank.o g/en/ egion/eca/b ie /economics-
o -disas e -p e en ion-p epa edness-eu ope
● (2024) Clima e economics - cos s and bene i s. Ene gy and Clima e
In elligence Uni . h ps://eciu.ne /analysis/b ie ings/clima e-
impac s/clima e-economics-cos s-and-bene i s
● (2023) Adap a ion Gap Repo . UNEP.
h ps://www.unep.o g/ esou ces/adap a ion-gap- epo -2023
● (2024) Clima e change impac s, isks and adap a ion. Eu opean
En i onmen Agency. h ps://sho u l.a /Kg0T8
● (2023) S anda d on Public-P i a e Pa ne ships / Concession Legal
F amewo k in suppo o he Sus ainable De elopmen Goals and i s
Accompanying Guide h ps://unece.o g/si es/de aul / iles/2023-
11/2319184_E_web.pd
● (2022) Guiding P inciples on Public-P i a e Pa ne ships in suppo o he
Uni ed Na ions Sus ainable De elopmen Goals
h ps://unece.o g/si es/de aul / iles/2023-
06/ECE_CECI_WP_PPP_2022_07-en.pd
● (2022) In oduc ion o Public-P i a e Pa ne ships in suppo o he Uni ed
Na ions Sus ainable De elopmen Goals
h ps://unece.o g/si es/de aul / iles/2022-
10/ECE_CECI_WP_PPP_2022_06-en.pd
● (2024) Ze o-D a Guide on G een and Sus ainable PPP P ocu emen o he
SDGs h ps://unece.o g/si es/de aul / iles/2024-
04/ECE%20PPP%20Fo um%20-
%20D a %20Guide%20on%20G een%20and%20Sus ainable%20PPP%20P o
cu emen %20 o %20 he%20SDGs_0.pd
● (2021) Clima e-Resilien In as uc u e O ice Handbook
h ps://gca.o g/wp-con en /uploads/2021/08/GCA-Handbook-V2.0-13-
Sep embe -2021-
2.pd ?_gl=1*1m7pain*_ga*NTMwOTk3NDEuMTcxODI5NDI2Ng..*_up*MQ
● (2022) Clima e Toolki s o In as uc u e PPPs
(h ps://documen s1.wo ldbank.o g/cu a ed/en/099120004052270615/p
d /P1746330d584 0210a9670dc 49a5becb0.pd )
● (2024) Gou del, R., Monas e olo, I., Dunz, N., Mazzocche i, A., & Pa isi, L.. The
double ma e iali y o clima e physical and ansi ion isks in he eu o a ea.
Jou nal o Financial S abili y, 71, 101233
38
The CLIMATEFIT p ojec aims o suppo EU e i o ies in hei jus and
ans o ma ional jou ney owa d clima e esilience by b idging he inancial gap,
p o iding c i ical insigh and building he capaci ies o (i) Public Au ho i ies (PAs) o
iden i y, o ches a e and a ac a ious public and p i a e inancing sou ces and
(ii) Financing & In es men En i ies (FIEs) o iden i y and access esilien in es men
oppo uni ies. CLIMATFIT opens a signi ican oppo uni y o os e inno a i e
esilience in es men s in ulne able EU e i o ies and o boos compe i i eness
and EU leade ship in a g owing ma ke . The p ojec will build on a deep
unde s anding o exis ing ini ia i es o sus ain sys emic and ca aly ic esilience
in es men s by engaging i s Technical Pa ne s, PAs and FIEs in he co-c ea ion o
wen y inno a i e in es men s a egies, en conc e e and scalable in es men
plans and ou bankable ans o ma ional in es men cases, inc easing he
bankabili y o esilien p ojec pipelines ac oss a di e si y o scales, inancing gaps,
con ex s, ba ie s o inancing, clima e isks and ulne abili ies, biogeog aphical
egions, adap i e capaci ies and ma u i y ega ding clima e change ep esen ed
om i s wen y case s udies g ouped in h ee clus e s: No hwes e n, Eas e n and
Sou he n.
