CF_D10 D2.3 Report containing methodology to build investment strategy

Funded by he Eu opean Union. Views and opinions exp essed a e howe e hose o he
au ho (s) only and do no necessa ily e lec hose o he Eu opean Union o CINEA.
Nei he he Eu opean Union no he g an ing au ho i y can be held esponsible o hem.
Con iden ial
D2.3 Repo
con aining
me hodology o
build in es men
s a egy
Valen ina De Cicco
Sal a o e Cimino
Richa d Taylo
Ki England
Giulia Galluccio
Co ado Topi
Chia a T ozzo
Anas asia Maga
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Table o Con en s
1 In oduc ion ................................................................................................................................................................................................................................ 2
2 O he p ojec s ........................................................................................................................................................................................................................... 3
2.1 P2R .......................................................................................................................................................................................................................................... 3
2.2 REGILIENCE..................................................................................................................................................................................................................... 4
2.3 PIISA ...................................................................................................................................................................................................................................... 5
2.4 SOTERIA ............................................................................................................................................................................................................................. 5
3 Key challenges and enable s om he Adap a ion In es men Landscape .........................................................................6
3.1 Adap a ion Finance Ba ie s ...............................................................................................................................................................................6
3.2 Adap a ion Finance Enable s ............................................................................................................................................................................6
3.3 In e na ional Bes P ac ices ................................................................................................................................................................................6
4 P ocess o e iew .................................................................................................................................................................................................................. 7
4.1 Role o he Local Resilience Task o ce..................................................................................................................................................... 8
4.2 How he guidance was p oduced ................................................................................................................................................................. 8
5 Phase 1: de elop you in es men s a egy ..................................................................................................................................................... 9
5.1 Assess and p io i ise clima e isks and sec o s ................................................................................................................................14
5.2 Ge o e iew o con ex PAs ope a es in ............................................................................................................................................. 19
5.3 Iden i y enabling condi ions o o e come ba ie s ....................................................................................................................... 22
5.4 Longlis o adap a ion op ions, i.e. ini ial se ....................................................................................................................................... 26
5.5 Es ima e high le el cos s and bene i s................................................................................................................................................... 32
5.6 Iden i y he inancing gap ................................................................................................................................................................................. 36
5.7 De ine ime ho izon o in es men ............................................................................................................................................................. 39
5.8 Iden i y he ange o possible inancial sou ces and ins umen s .....................................................................................41
5.9 Ma ch ypes o adap a ion op ions wi h inancial en i ies/ins umen s ...................................................................... 48
5.10 Go e nance and esou ces ...................................................................................................................................................................... 52
6 Phase 2: De elop you In es men Plan .......................................................................................................................................................... 54
Annex – Addi ional esou ces o in es men s a egies .............................................................................................................................. 55
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1 In oduc ion
Please no e ha he in oduc o y pa o he documen is pa o an ongoing e o and will be expanded
and supplemen ed by he ask o ce wi h u he upda es in he coming mon hs, acco ding o he
de elopmen o he es o he chap e s and he ongoing wo k on e minology consis ency. Cu en e o
is dedica ed o he e iew o he glossa y; he e o e mino changes may appea which will cascade
h ough he documen .
Conside ing he needs o Public Au ho i ies (PAs) o ecei e guidance and build capaci y on how o mobilize
inance o clima e adap a ion, he aim o his documen wi hin CLIMATEFIT is o desc ibe he
me hodologies o be used by PAs o de eloping pipelines o in es able p ojec s ac oss adap a ion ac ion.
While i is designed as a ool o p o ide help and guidance o PAs ac oss Eu ope ackling adap a ion
inancing issues, o he pu pose o he CLIMATEFIT p ojec , acili a o s a e in ended as he p ima y use s o
his documen . Facili a o s a e he iden i ied p ojec pa ne s in cha ge o suppo ing he CLIMATEFIT case
s udies in hei ans o ma ional jou ney o clima e esilience, ailo ing and applying he me hodology. In
pa icula , in he case o he 4 leade e i o ies, acili a o s a e suppo ed by he as - ack mechanism o
help hem p og ess quickly in he p ocess. The o e all goal is co-designing 20 inno a i e In es men
S a egies (IS), allowing o iden i y sou ces o inance, and de eloping 10 c edible and scalable in es men
plans (IP) o help be e nego ia e and a icula e inancing s eams and de ine in es men concep s (IC). The
ou pu s o his p ojec a e p ima ily di ec ed owa ds PAs leade ship (e.g. mayo s) and FIEs, including
inancial analys s, in o de o align hei in e es s, inancial needs inancial esou ces.
This documen is he e o e ailo ed o PAs; all concep s and me hodologies a e in oduced and explained in
a le el o de ail ha allow hem, as well as o he o ganisa ions in ol ed in clima e adap a ion planning and
implemen a ion, o independen ly apply hem in p ac ice.
Gi en he common p ac ice among Public Au ho i ies (PAs) o adop a single comp ehensi e documen ha
o en encompasses bo h he s a egic and ope a ional dimensions—blu ing he lines be ween in es men
s a egies and in es men plans—wi hin he CLIMATEFIT p ojec , he Wo k Packages (WP2, WP3, and WP4),
which a e esponsible o guiding and implemen ing he ull p ocess om s a egy de ini ion o he
de elopmen o bankable p ojec pipelines, ha e decided o es ablish a join ask o ce. The aim is o
p oduce a uni ied manual ha suppo s PAs in hei planning e o s. This in eg a ed app oach p omo es a
smoo h and lexible ansi ion ac oss he di e en phases o he p ocess, while accommoda ing he a ying
le els o ad ancemen among PAs and acili a ing a cohe en p og ession om s a egy o planning.
The documen he e o e co e s he key phases iden i ied in Figu e 1.
Figu e 1 De ini ion o key s ages o de elop pipelines o bankable p ojec s. Sou ce: CLIMATEFIT glossa y
The documen encompasses he ollowing deli e ables, pa o WP2, WP3 and WP4 (see Figu e 2):
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• Chap e 4.1: In es men S a egies Me hodology [D2.3 by CMCC]
• Chap e 6: In es men Plans me hodology [D3.1 by SEI OX]
• Chap e E o ! Re e ence sou ce no ound.: Incen i e Mechanisms [D3.2 by SEI HQ]).
Figu e 2 WPs asks. Sou ce: CLIMATEFIT
Using he esul s o WP1 and wo kshops in T2.1 and T2.2 and capi alizing on he analysis p o ided in he
Financing Landscape, he in es men s a egy me hodology aims a ansla ing local adap a ion s a egy
in o in es men s a egies.
I p o ides a p agma ic and hands-on guidance o p io i ise in es men wi hin adap a ion s a egies and
p ojec s ha should conside in hei design and implemen a ion clima e change isks and impac s. The
me hodology will help acili a o s and PAs iden i y and a icula e unding and inancing sou ces (e.g., g an s
including EU unding ins umen s, na ional, egional and local budge s, loans and gua an ees, p i a e
in es men s) and FIEs o inance pipelines o p ojec s, also conside ing inno a i e s a egies o mobilising
inancing o clima e esilience.
The in es men s a egy se es as a map, in he pa h om adap ion s a egies owa ds bankable
adap a ion p ojec s. I p o ides he PA wi h knowledge on in es men and inancial oppo uni ies, which will
hen be selec ed and packaged in o he in es men plan.
To be complemen ed wi h a summa y o he pu pose o each s age, and i s ela ionship o he p ojec
design and de elopmen p ocess
The p ocess is buil o e he main s ages o in es men s a egy and in es men plan, wi h a numbe o
modules o each o hem. I has been designed o p o ide a ‘gold s anda d’ o p ojec de elopmen .
Howe e , i is acknowledged ha in many cases, ce ain s eps will no be equi ed, o he e will be limi ed
esou ces a ailable o p ojec de elopmen . The e o e, he guidance is s uc u ed wi h indi idual modules,
which should all e iewed and by discussing wi h s akeholde s a decision needs o be made on which
modules a e impo an and he e o e should be included. Each o hem con ains a ange o app oaches,
om ligh ouch o in-dep h o allow lexibili y o i he di e en con ex and needs.
2 O he p ojec s
2.1 P2R
P2R’s (Pa hways 2 Resilience) ocus is p o iding an adap a ion inance p ocess ha is aligned wi h a
ans o ma ional adap a ion planning cycle, known as he Regional Resilience Jou ney. I highligh s how
adap a ion inance gene a ing in es men s a egies o adap a ion pa hways – b oad ajec o ies o
esilience agains pa icula isks o in sec o s, o e a long ime pe iod (e.g. 100 yea s o Sea Le el Rise). This
in ol es looking a he egional con ex , baseline clima e cos s, Regions hen de elop a s a egic app oach
o di e si ying and scaling sou ces and ins umen s, be o e hen de eloping hei pa hways, and hen he
nea - e m ac ions in hei pa hway as pa o an ac ion plan.
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Figu e 3 The Adap a ion In es men Cycle phases suppo ing he Regional Resilience Jou ney. Sou ce: P2R
Whils much o his will be help ul aming o CLIMATEFIT, Pa hways2Resilience has a di e en ocus om
CLIMATEFIT in se e al ways:
• Scale – The scale o he P2R app oach is he egional scale – i ocuses on he package o ac i i ies
egions need o inance in a Clima e Resilience S a egy and Ac ion Plan.
• Scope
• Time pe iod – Pa hways2Resilience is ocused on de eloping In es men S a egies o he en i e
pa hway o a egion. Whils hese will a y by sec o o haza d, in gene al hey a e long e m ( o
example o mid/end o he cen u y), comp ising mul iple packages o adap a ion op ions.
• Focus on ans o ma ional adap a ion
• The la e s ages o ocus on ac ions in he ac ion plan c oss o e wi h CLIMATEFIT, in ha hey
equi e an assessmen o whe he he p ojec s mee he economic and inancial app aisal c i e ia o
he unde s,
To suppo hei wo k P2R has de eloped a ca alogue o inancial sou ces and ins umen s
• Which o hose sou ces a e accessible o CLIMATEFIT PAs? In heo y, all sou ces and ins umen s
a e a ailable o usable by egions in CLIMATEFIT. Howe e , P2R is cu en ly de eloping a guidance
ool o help egions selec sou ces and ins umen s depending on inancing needs and o he local /
ele an c i e ia.
• Which o he inancial ins umen s a e heo e ical and which ha e p o en eco d?
2.2 REGILIENCE
Regilience (Regional Pa hways o Clima e Resilience) is a Eu opean p ojec ha aims a sha ing he mos
p omising c oss-sec o al adap a ion solu ions, suppo ing ci ies and egions ac oss Eu ope o become mo e
esilien o clima e change.
The p ojec is commi ed o suppo he Eu opean G een Deal and he EU Mission “Adap a ion o Clima e
Change” by os e ing he adop ion o egional clima e esilience de elopmen pa hways. I de elops,
compiles, sha es and p omo es ools and scien i ic knowledge o suppo Eu opean egions in iden i ying
and add essing hei clima e- ela ed isks. I wo ks closely wi h o he sis e p ojec s, such as ARSINOE,

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IMPETUS and T ans o mA o os e he capaci y o 7 ocus egions o manage he una oidable impac s o
clima e change.
Regilience’s wo k encompasses he design and implemen a ion o a b oad ange o communica ion and
dissemina ion ac i i ies wi hin he a ge g oups, he enabling ac o s and he b oade communi y. Mo e
speci ically i aims a :
• Unde s anding and add essing local and egional needs,
• Connec ing people and ideas,
• Building local and egional capaci y.
• S eng hening esilience in 7 ocus egions
• Engaging wi h ci izens and os e ing hei awa eness
• Collabo a ing wi h o he p ojec s
Among he di e en ools and esou ces de eloped by he p ojec , he Funding Oppo uni ies Guide is a
unding ool o aise awa eness o a ailable inancial on Eu opean and na ional le el dedica ed o suppo
egional clima e esilience. I p o ides in o ma ion on how o seek and a ac unding, de ailing Eu opean
and na ional unding sou ces o adap a ion. The ool can help PAs o p o ide answe s o he ollowing
ques ions:
• Which o hose unding oppo uni ies a e no apped by CLIMATEFIT PAs ye ?
• Which o hose unding oppo uni ies can be used as le e age o a ac ing p i a e inancing?
2.3 PIISA
PIISA (Pilo ing Inno a ion Insu ance Solu ions o Adap a ion) is a 3-yea Resea ch and Inno a ion Ac ion
unded unde he Ho izon Eu ope p og amme, which will co-de elop clima e esilien insu ance po olios
and de elop solu ions o sha ing clima e- ela ed isk and losses da a. The p ojec ocuses on sec o s like
ag icul u e, o es y, ci ies and ci izens’ well-being, ackling a hos o clima e enhanced haza ds such as
loods, d ough s, o es i es, bio ic isks, and a ious ypes o s o ms.
The inal aim is o de elop and deploy a ange o insu ance inno a ions o co e a leas 50% o losses
a ibu able o clima e change e ec s in Eu ope. The p ojec hopes o suppo households, i ms, and public
au ho i ies o se up adap a ion and c ea e adap a ion p omo ing condi ions.
2.4 SOTERIA
So e ia (Solu ions Tes ing o Regions h ough Insu ance o Clima e Adap a ion) embodies a comp ehensi e
and co-c ea i e app oach aimed a add essing he p essing challenges posed by clima e change h ough
inno a i e insu ance s a egies.
The p ojec is dedica ed o ad ancing insu ance solu ions o clima e change adap a ion ac oss di e se
Eu opean egions and communi ies, wi h he aim o inc easing Eu ope’s esilience and p epa edness o ace
he una oidable consequences o clima e change.
The mission encompasses h ee acks:
• Documen ing bes p ac ices abou da a u ilisa ion, eme ging insu ance models, and obus enabling
amewo ks.
• Tes ing inno a i e solu ions, aking hem om esea ch le els o demons a ion and es ing. Some
o hem will be aken up o he le el o p e-comme cial p ocu emen in a leas h ee cases.
• Communi ies o P ac ice: placing emphasis on os e ing communi ies o p ac ice and insu ance
dialogues, o analyse he ole o public mode nisa ion and how o de elop a o dable insu ance
schemes ha lea e no one behind. The Communi ies o P ac ice will also suppo o he egions
in e es ed in designing and/o adop ing inno a i e insu ance solu ions.
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3 Key challenges and enable s om he Adap a ion
In es men Landscape
Idea o summa ise he ba ie s and enable s be o e going in o de ail wi h he de elopmen o he
di e en s ages. To be decided whe he o keep he e and u he de eloped, o o be dis ega ded a his
poin o he documen because in he IS phase he e is he speci ic module on ba ie s and enable s.
3.1 Adap a ion Finance Ba ie s
CLIMATEFIT has used he indings om D1.1 ( he Adap a ion In es men Landscape) o help in o m he
design o i s In es men S a egy and Plan me hodologies. The main ba ie s a e summa ised below:
• The main ba ie o bo h PAs and Financing and In es men En i ies (FIEs) is he lack o knowledge
and expe ise
• Also iden i ied ha he challenge o quan i ying economic o mone a y bene i s o adap a ion
• Regional di e ences in knowledge o clima e isk and adap a ion
• Con lic ing p io i ies (i.e. beyond adap a ion)
• A lack o capaci y in PAs and s a cons ain s o apply o unding, as well as siloed go e nance
• Lack o egula ion
• Limi ed isions o adap a ion.
An impo an inding o he s udy was ha he e was a misma ch be ween PAs and FIEs. PAs and FIEs may
expe ience some simila and some di e en ba ie s, bu hey a e wo di e en wo lds when conside ing he
objec i es ha PAs and FIEs ha e ega ding clima e inancing – wi h public bodies being d i en by policy
amewo ks, and he in es men s no being a ac i e o p i a e sec o inancie s.
3.2 Adap a ion Finance Enable s
CLIMATEFIT has used he indings om D1.1 ( he Adap a ion In es men Landscape) o help in o m he
design o i s In es men S a egy and Plan me hodologies. The main ba ie s a e summa ised below:
He e you can ind a lis o Adap a ion Finance enable s:
- Suppo i e policy and egula o y en i onmen – Na ional s a egies and legal amewo ks mus
in eg a e adap a ion o guide and a ac in es men s.
- S ong ins i u ional amewo ks and capaci y – Ins i u ions need clea manda es, esou ces, and
coo dina ion mechanisms o manage adap a ion inance e ec i ely.
- Clima e knowledge co-p oduc ion and use – Decisions should be based on localized, use -
in o med clima e da a and isk assessmen s.
- Financial planning and alloca ion ools – Mains eaming adap a ion in o public budge ing and
in es men planning ensu es consis en esou ce alloca ion.
- Mul i-s akeholde pa ne ships – Collabo a ion among public, p i a e, and communi y ac o s
boos s inno a ion and le e ages unding.
- Imp o ed access o inance – S eamlining access o clima e unds and p omo ing blended
inance mechanisms is key o inc easing inancial lows.
The e o e, all hese enable s c ea e a obus ecosys em o inancing clima e adap a ion, especially o
public au ho i ies and local ac o s.
3.3 In e na ional Bes P ac ices
Addi ionally, he 20 in e na ional bes p ac ices helped iden i y ele en gene al key success ac o s o
inno a i e Adap a ion Funding and Financing Solu ions (AFFS) and six condi ions o ans e he esea ched
AFFS o o he e i o ies, including he EU.
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Figu e 4 Enabling ac o s om CLIMATEFIT 20 in e na ional bes p ac ices. Sou ce: CLIMATEFIT D1.1
The ele en key success ac o s a e:
1. s akeholde in ol emen (collabo a ions be ween public and p i a e pa ne s, collabo a ions
be ween public pa ne s, communi y suppo ),
2. legal compliance,
3. poli ical suppo ,
4. public esou ces,
5. p i a e esou ces,
6. de- isking mechanisms,
7. a business case,
8. accoun abili y/ anspa ency/ epo ing,
9. inancial incen i es,
10. combining mul iple sou ces/ins umen s,
11. ha ing a long- e m s a egy o sus ainable inance s a egy, and
12. lexibili y.
The ans e abili y condi ions a e public esou ces, ( e)paymen capaci y, objec i es and go e nance
s uc u e, ou each and awa eness, public o p i a e champions, and using es ablished o es ed models o
mechanisms.
4 P ocess o e iew
CLIMATEFIT is p oposing a ou -s age me hodology, aligned wi h he p ojec de elopmen cycle. This
in ol es he de elopmen o he Adap a ion In es men Landscape (AIL), he In es men S a egies (IS), he
In es men Plans (IP) and In es men Concep s (IC).
Table 1 P ocess o e iew
P ojec s age
Adap a ion
In es men
Landscape
Ou line
design
De ailed design
P ocu emen and Deli e y
Economic
app aisal
Longlis o
op ions
Sho lis app aisal –
de ailed Cos Bene i
Analysis (CBA)
Financial
app aisal and
comme cialis
a ion
In es men
S a egies
In es men Plan -
S uc u ing o inancial
model
In es men Concep s
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4.1 Role o he Local Resilience Task o ce
Local Resilience Task o ces (LRTs) a e pla o ms o engage mul iple s akeholde s in social inno a ion
p ocesses con ibu ing o imp o ing he unding and inancing o clima e adap a ion solu ions. They p o ide
a s uc u e o egional and local s akeholde s’ engagemen , laying he g ound o social inno a ion
app oaches, adop ed h ough he ch onological s eps o he p ojec , om adap a ion s a egies, h ough
adap a ion plans o adap a ion cases. The o ma o LRTs is also needed o apply he ca aly ic and sys emic
app oach o esilience in es men p omo ed by CLIMATEFIT and enables o boos he agg ega ion o
se e al small [clima e adap a ion] p ojec and make hem mo e bankable. LRTs a e he place whe e he co-
design and collabo a i e planning o in es men s a egies (ISs), in es men plans (IPs) and in es men cases
(ICs) will happen. Acco ding o he di e ence in ma u i y o adap a ion inance ma e s wi hin he PAs a
each s age o he CLIMATEFIT me hodology p ocess, he LRT o ma and membe s a e expec ed o e ol e
o e ime.
LRTs ga he mul iple s akeholde s di ec ly conce ned by clima e adap a ion planning, unding and
inancing, and a e cha ac e ised by he ollowing ea u es:
- Local and con ex dependen : LRTs a e oo ed in he local adap a ion, legisla i e, and inancial
con ex s and hey aim o o e come ba ie s a he local le el, aking in o conside a ion also he
poli ical o legal cons ain s and exis ing collabo a ions wi h speci ic local en i ies.
- Mul i-s akeholde g oups wi h delimi ed membe ship: wi hin CLIMATEFIT, LRTs a e ini ia ed by PAs
suppo ed by hei acili a o s, who a e ones iden i ying and in ol ing ele an s akeholde s,
de ining he p ima y objec i es, and coo dina ing he adminis a i e ma e s. S akeholde s a e
engaged g adually, ollowing he LRT engagemen s a egy.
- Encou age a collabo a i e app oach o inno a ion: LRTs ep esen he a ena whe e ep esen a i es
om di e en en i ies (PAs, FIEs, companies, echnical pa ne s) adop a social inno a ion app oach.
They in e ac , deba e, and discuss o enhance hei espec i e capaci ies/ma u i ies, o guide
in e nal decision-making p ocesses owa d he collec i e planning and design o in es men
s a egies, in es men plans and in es men cases, o he success ul conc e isa ion o in es men
cases o co-de elop and es adap a ion solu ions.
- Flexible and e olu i e implemen a ion: being expe imen al a enas, hey a e e olu i e and hei
implemen a ion will in o m models and guidelines o eplicabili y ac oss Eu opean e i o ies.
Wi hin he LRTs, s akeholde engagemen can ake mul iple o ms, co e ing mul iple ac i i ies allowing he
pa icipa ion o s akeholde s in o decision making. These ange om mo e passi e o mo e ac i e ac i i ies
and oles: in o ma ion, consul a ion, dialogue, pa ne ship and co-c ea ion,
Wi h espec o he p ocess o c ea ion o in es men s a egies and plans, he ole o LRTs is en isaged as
o suppo in he collec i e iden i ica ion o pipelines o adap a ion p ojec s and o unding sou ces, in he
collec i e es ima ion o needed esou ces and cos s, and in he de elopmen and es ing o he in es men
s a egy and plan, as well he smoo h ansla ion o he o me o he la e .
4.2 How he guidance was p oduced
The in es men s a egy me hodology has been de eloped by e iewing he exis ing li e a u e and he
p e ious wo k om CLIMATEFIT WP1, WP2 and WP6, capi alizing on he knowledge de eloped and on
insigh s om he i s le el ainings. Inpu s om he pa icipan s o he ask ha e been conside ed as
s a ing poin s o iden i y he opics and he common elemen s ha needs o be add essed by he
me hodology.
The me hodology inco po a es i s eedback om acili a o s and echnical pa ne s and will be u he co-
de eloped wi h acili a o s and PAs, alida ed and es ed hanks o he as - ack mechanism
implemen a ion in he 4 leade e i o ies.
A his s age, a e ca ying ou he IS pilo ing phase in he 4 p ojec lead e i o ies, we unde ook a
consul a ion and e iew o he o e all p ocess in o de o cap u e main challenges and lesson lea n and
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Templa e 1 o be illed in by PAs
Risk
Sec o
Se e i y (e.g.
High/Medium/Low)
U gency (e.g.
High/Medium/Low)
P io i ised
(Yes/No)
7.Key issues o conside
PAs ha al eady ha e de eloped adap a ion s a egies and/o plans, o ha ha e pe o med clima e
isk assessmen s while de eloping o he s a egies, can s a om hose documen s and ex ac he
ele an da a and in o ma ion, selec ing and p io i izing he a eas o in e en ion.
In case such wo k has no been al eady pe o med a he local le el, PAs can s a by eso ing o
adap a ion s a egies and plans de eloped a highe le el (e.g., egional and na ional), o iden i y which
isks a e applicable o he speci ic e i o y and equi e adap a ion in e en ions a local le el.
The e a e se e al me hodologies, ins umen s and s anda ds ha can p o ide guidance, ools and
amewo ks o help PAs in pe o ming assessmen o clima e isks and/o p io i izing sec o s o in e en ion.
A a minimum, in o ma ion should be d awn om he wo k pe o med in WP1 o de elop D1.1, e en ually
complemen ed wi h con en om local and egional adap a ion plans/s a egies/clima e isk assessmen
al eady in place.
Once clima e isks a e iden i ied, i is impo an o de ine he scope o he CLIMATEFIT adap a ion
in es men s a egy, by de e mining he u gency o in e en ions in he di e en a eas/sec o s and
p io i izing acco dingly.
PAs need o iden i y he isks hey wan o add ess and wi hin which sec o o speci ic municipali y a eas. I is
c ucial o de ine a an ea ly s age wha PAs aim o inance in he con ex o he in es men s a egy by
de e mining he p io i ized isks and sec o s o in e en ion, as om hese selec ions i will depend which
adap a ion op ions will be selec ed and possible ways o inancing hem.
8. Fu he eading/ guidance and esou ces
Resou ces: EUCRA me hodology
The Eu opean Clima e Risk Assessmen (EUCRA) applies he clima e isk concep o he
In e go e nmen al Panel on Clima e Change (IPCC) Six h Assessmen Repo (AR6) and he isk
assessmen guidelines o ISO 31000 and ISO 14091 whe e easible.
Based on exis ing scien i ic e idence, a s uc u ed isk selec ion, analysis and e alua ion was ca ied ou .
The isk selec ion iden i ied majo clima e isks o Eu ope based on common c i e ia, hen he isk analysis
classi ied hem acco ding o se e i y o e ime, based on po en ial o se e e consequences and inally
he isk e alua ion phase e alua ed he u gency o EU ac ion conside ing isk se e i y o e ime,
con idence in he isk se e i y assessmen and he empo al aspec s o po en ial adap a ion ac ions join ly
wi h isk owne ship, policy eadiness and he policy ho izon.

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Figu e 9 S uc u ed isk assessmen in EUCRA. Sou ce: EEA
The isk selec ion iden i ied majo clima e isks o Eu ope by an ini ial sc eening o he ele an scien i ic
li e a u e, guided by he ollowing c i e ia:
• High magni ude o po en ial ad e se consequences in he p esen o u u e
• High likelihood o se e e consequences
• High i e e sibili y o consequences (e.g. due o c ossing o ipping poin s)
• High po en ial o cascading e ec s beyond sys em bo de s, geog aphically and sec o s
• Agg a a ing e ec o clima e change o e ime.
The isk analysis ocused on assessing he isk se e i y o each majo clima e isk acco ding o ou
classes (limi ed, subs an ial, c i ical and ca as ophic), which was guided by quan i a i e benchma ks
e e ing o economic impac s, e ec s on people and o he impac s (land, ecosys ems and iconic he i age
asse s).
Figu e 10 Risk se e i y classes in EUCRA. Sou ce: EEA
The assessmen o isk se e i y was pe o med o h ee di e en ime pe iods: cu en (up o 2040), mid-
cen u y (2041-2060) and la e cen u y (2081-2100). Fo he la e cen u y wo b oad clima e change scena ios
a e conside ed (low wa ming, up o 2°C, and high wa ming, 3-4°C).
The isk se e i y assessmen was complemen ed by an assessmen o con idence (high, medium, low)
in o med by he ype, amoun , quali y and consis ency o e idence as well as he le el o ag eemen .
The policy analysis assessed he policy ho izon, isk owne ship and policy eadiness acco ding o b oad
ca ego ies. The policy ho izon (sho (up o 2040), medium (up o 2060), long (up o 2100) indica es he
u u e ime ho izon ha needs o be conside ed in cu en adap a ion decisions ela ed o a pa icula isk.
I conside s wo aspec s: lead ime and decision ho izon. The lead ime desc ibes how long i akes o plan
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and implemen e ec i e adap a ion ac ions. The decision ho izon desc ibes he lock-in po en ial o
cu en decisions ela ed o clima e-sensi i e sys ems. Risk owne ship desc ibes whe e he lead
esponsibili y o manage a majo clima e isk lies be ween he Eu opean le el and Membe S a e le el.
Policy eadiness deno es o wha ex en a clima e isk is being ecognised and managed in Eu ope.
The isk u gency e alua ion de e mined he u gency and ype o policy ac ion acco ding o 5 ca ego ies:
u gen ac ion needed, mo e ac ion needed, u he in es iga ion, sus ain cu en ac ion, wa ching b ie .
Risk u gency e alua ion algo i hmically done based on ou pu s o he isk analysis and indica i e policy
analysis. The key elemen is a isk u gency ma ix ha conside s isk se e i y, con idence policy eadiness.
EUCRA has ollowed a sys ema ic isk assessmen p ocess ha has iden i ied and assessed 36 majo clima e
isks o Eu ope, g ouped in o i e b oad clus e s: ecosys ems, ood, heal h, in as uc u e, and economy
and inance (see Figu e below).
Almos all o he selec ed majo isks can each c i ical o e en ca as ophic le els du ing his cen u y. In
addi ion, he assessmen iden i ied h ee majo clima e isks speci ic o he EU ou e mos egions. Mo e han
hal (21 ou o he 36) majo clima e isks o Eu ope iden i ied in his epo need mo e ac ion now, wi h eigh
o hem being pa icula ly u gen .
U gen ac ion is needed o isks om all policy clus e s, indica ing ha policies need o inc ease in ambi ion,
scope and implemen a ion.
Many clima e isks a e cha ac e ised by long policy ho izons, meaning ha isk le els p ojec ed o he
second hal o his cen u y a e ele an o cu en adap a ion decisions. Long policy ho izons can be caused
by long lead imes o planning and implemen ing e ec i e adap a ion ac ions, such as in he case o
complex coas al p o ec ion in as uc u e. They can also be ela ed o long decision ho izons: cu en
decisions can c ea e lock-ins wi h long- e m implica ions, such as o in as uc u e buil o o es s plan ed
oday. In he case o long lead imes o decision ho izons, e en clima e isks ha a e no cu en ly a c i ical
le els could equi e u gen ac ion o p e en e y se e e impac s in he u u e
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Figu e 11 U gency ca ego ies and main isks in EUCRA. Sou ce: EEA
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5.2 Ge o e iew o con ex PAs ope a es in
1. Pu pose o he module
The pu pose o his module is o p oduce an o e iew o he egula o y amewo k and he con ex o he
PA, s a ing by looking a he Eu opean le el, and hen analysing he na ional, egional and municipal le el. I
is impo an o unde s and which a e he amewo ks, egula ions and policies ha impac adap a ion and
in es men decisions, as he in es men s a egy should be aligned.
2. Inpu s and p e equisi es
Unde s anding he sus ainabili y scena io, conduc ing a con ex analysis, and iden i ying policy and
egula o y mechanisms ha a e e i o ially ele an . I also includes an assessmen o he poli ical and
egula o y landscape, in o de o e alua e how PAs align wi h he b oade con ex . This module is inhe en ly
connec ed o all o he modules, as bo h he o e all and local con ex s a e c oss-cu ing ac o s ha shape,
in luence, and cons ain all PA ac i i ies and s a egic choices.
3. Skills and Expe ise equi ed
Knowledge o he egula o y amewo k, policy p io i ies, exis ing s a egies and plan, om highe o local
le el. In addi ion, unde s anding o how he PA is s uc u ed in e ms o depa men s, hei ac i i ies and
esponsibili ies. Fo echnical suppo , below you can ind a me hodology help ul o unde s and he main
adap a ion policies.
4.Ac i i ies and e o s
E o s include he sea ch o and e iew o documen s and amewo ks om he Eu opean o he local o
le el o ensu e alignmen , making also use o esou ce such as he Coun y P o iles pla o m, and he e iew
o he o ganisa ional s uc u e o he PA and oles o he depa men s.
5.S akeholde s o in ol e and he ole o he LRTs
• Clima e depa men
• Financial depa men
• Ci y manage
• Regional de elopmen agency
6. Ou pu s om he module
Comp ehension o he egula o y and policy amewo k ela ed o adap a ion aspec s.
7. Key issues o conside
A good s a ing poin (and minimum equi emen ) is he esul o deli e ables D1.1 (especially Chap e 4)
and D6.1 (Chap e 2.1), in which an o e iew o adap a ion inance in he EU and o he adap a ion policy
con ex is p o ided, oge he wi h in o ma ion on he speci ic e i o ies.
I is impo an o iden i y he exis ing documen s and s a egies, and ongoing p ojec s and ini ia i es a
local o na ional le el ha a e ela ed o con ain elemen s o clima e adap a ion, which need o be
conside ed and could be used as e e ence.
Examples o such documen s a e sus ainable de elopmen s a egies, eco e y and esilience plans,
clima e ac ion plans, local budge cycles, in as uc u e de elopmen o emodelling s a egies,
anspo s a egies, g een in as uc u e s a egies, in eg a ed in es men s a egies.
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Adap a ion inancing s a egies mus be aligned wi h o he inancial plans, in eg a ing hem wi h he
b oade inancial landscape. Alignmen wi h policy and in es men p io i ies can also s eng hen he
poli ical suppo and encou age b oade adop ion o adap a ion measu es ac oss depa men (IISD 2023). A
he same ime, om he poin o iew o in es o s, such alignmen can p o ide eassu ance and encou age
buy-in.
Fu he mo e, as he e a e di e en mechanisms o ans e o powe ac oss and wi hin di e en e i o ies, i
is key o ha e a clea unde s anding o he ins i u ional a angemen s, in pa icula he dis ibu ion o
powe on clima e inance decisions be ween he na ional, egional, and municipal scale go e nmen ,
and he go e nance a he na ional le el and how hese ansla e a egional and municipal le el.
Local condi ions and legal cons ain s need o be aken in o conside a ion: wha PAs ha e he au ho i y and
legal powe o decide and implemen , iden i ying cons ain s bo h in e ms o p ojec s and adminis a ion o
budge s.
As an example, he iscal powe o local au ho i ies a ies g ea ly among Eu opean coun ies in e ms o he
ypes o axes hey can impose and o he disc e ion in he alloca ion o he e enues’ s eams.
Ano he example is he au ho iza ion om cen al go e nmen s o issue di e en ypes o inancial
ins umen s.
Templa e 2 Scheme o be adap ed by each PA, o iden i y he ele an egula ions and documen s a he
di e en le els con aining adap a ion elemen s
Wi hin adminis a ions hemsel es, he e should be communica ion and sha ing o knowledge and
expe iences, o b eak he silo app oach. Adap a ion challenges and adap a ion inance should no be aced
depa men by depa men bu ough a uni ied app oach. PAs should ake s ock o and e alua e hei pas
expe iences in e ms o p ojec implemen a ion, unding and inancing, ac oss di e en sec o s and
depa men s, and cap u e al eady exis ing ela ionships wi h he p i a e sec o . The goal is o ha e a

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comp ehensi e o e iew, iden i y po en ial ac o s o in ol e, me hods ha a e cu en ly being employed o
ha ha e been success ully implemen ed in he pas and ha can be eplica ed.
A use ul exe cise is he mapping o he di e en depa men s wi hin he PA ha a e al eady in ol ed in
adap a ion o could po en ially be in ol ed, o s a iden i ying ele an ac o s. This could be done by
s uc u ing an o ganisa ional cha o in a abula o m.
Templa e 3 Example o o ganisa ional cha , o be adap ed and illed in by PAs
8. Fu he eading/ guidance and esou ces
Resou ces: Clima eADAPT Coun y P o iles
This in e ac i e pla o m showcases he s a us o na ional adap a ion ac ions epo ed o Eu opean
coun ies. Fo each o hem, in o ma ion on na ional ci cums ances, legal policy amewo ks, s a egic plans,
good p ac ices and subna ional con ex a e p esen ed, along wi h links o he public documen a ion.
Figu e 12 Sc eensho om Coun y P o iles pla o m. Sou ce: Clima eADAPT
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5.3 Iden i y enabling condi ions o o e come ba ie s
1. Pu pose o he module
As ba ie s o clima e adap a ion planning and inance can be highly con ex speci ic, his module aims a
iden i ying he speci ic ba ie s PAs expe ience in hei e i o ies and de ining ac ions o o e come hem.
2.Inpu s and p e equisi es
Comp ehension o po en ial ba ie s ha can a ec PAs, by pe sonal knowledge o in e nal discussions. This
module is om a b oad pe spec i e connec ed wi h all he o he modules, as he iden i ica ion o ba ie s
and ac ions o push pas hem is bene icial o he de elopmen o he in es men s a egy in gene al and
migh enla ge he spec um o possibili ies a ailable o PAs.
3. Skills and Expe ise equi ed
Unde s anding o he main ypes o ba ie s o adap a ion inance and o hose di ec ly a ec ing he PAs.
Unde s anding po en ial solu ions and emedial ac ions.
4.Ac i i ies and e o s
E o s can include he e iew and expansion o wo k conduc ed in D1.1 and T2.1, consul a ions wi h in e nal
depa men s and ex e nal s akeholde in ol ed in he adap a ion inance and implemen a ion. In addi ion o
discussions wi h in e nal and ex e nal s akeholde s, he objec i e is o unde s and and iden i y he enabling
ac o s and ba ie s, as well as local adap a ion ini ia i es — especially ega ding inancing mechanisms —
h ough he consul a ion o s udies and pape s a he na ional, local, and Eu opean le els.
5. S akeholde s o in ol e and he ole o he LRTs
• Clima e depa men
• Financial depa men
• Ci y manage
• Regional de elopmen agency
• NGOs
• Local associa ions
• FIEs
• Clima e agencies
6. Ou pu s om he module
Iden i ying ba ie s, emedial ac ions and ac o s in ol ed. A a minimum, he ba ie s iden i ied in WP1 and
se ou in in D1.1. should be ou lined, iden i ying po en ial emedial ac ions.
Templa e 4 o be illed in by PAs
Ba ie
Remedial Ac ion
Ac o s in ol ed in he solu ion
I is also impo an o conside he di e en e ec s o emedial ac ions, ha could add ess mul iple ba ie s
a he same ime. The e does no need o be a one- o-one co espondence be ween ba ie s and emedial
ac ions.
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7. Key issues o conside
CLIMATEFIT D1.1 al eady p o ides a se o ba ie s om he poin o iew o he PAs, coming om he
li e a u e e iew and om in e iews, bu i is also use ul o unde s and o he po en ial ba ie s coming om
he PAs consul a ions.
Ba ie s coming om he li e a u e (Mose e al., 2019) a e ca ego ized in 5 hema ic i ems:
• Es ablishing clima e change isks as a ma e o conce n:
o Con lic o in e es , Clima e isks a e igno ed because o expendi u es, los e enues and
he absence o g ea nea - e m bene i s due o he long- e m na u e o clima e change.
o Low p io i y. Lack o knowledge and in e es in clima e change om he PA.
o Lack o champions and leade ship. Lack o leade ship om decision make s and chie s o
s a on clima e change.
o Disp opo iona e bu den. Cu en issues such as educa ion, housing, in as uc u e a e
mo e p essing ulne abili ies.
• Es ablishing adap a ion unding needs, cos s and bene i s:
o Inapp op ia e unding scale. Clima e isks do no espec ju isdic ional bounda ies,
po en ially c ea ing a misma ch be ween po en ial solu ions and he au ho i y o he PA.
This ba ie also en ails he ques ion o esponsibili y and accoun abili y o clima e change
impac s.
o Siloed go e nance. Disconnec ion be ween depa men s, c ea ing unclea esponsibili ies,
leade ship, and accoun abili y.
o Inabili y o make he economic case. Inabili y o assess he need o ac ion, challenge o
aluing isks and bene i s, abili y o alua e mone a y and nonmone a y alue.
• P o ing he iscal s anding o he PA (adap a ion unding seeke ):
o Ch onic unde unding. Dependency on g an s because o inabili y o e ec i ely aise ax.
• Iden i ying and accessing adap a ion unding sou ces:
o Lack o capaci y and s a cons ain s o apply o undings. Limi ed s a limi s he capaci y
o apply o undings. The PA does no ha e dedica ed pe sonnel ocused on adap a ion.
o Discon inuous unding: sho e m p ojec s o adap a ion, in con as wi h e y long- e m
unding plans needed o clima e change.
o A e sion o inno a ion. De ia ion om adi ional p ojec s no always welcomed by he
bu eauc acy.
• Ha ing o building capaci y o esea ch, use, and adminis e adap a ion unds:
o Funding biases: pe cep ion ha he e is only limi ed unding o adap a ion implemen a ion
and planning.
o Lack o knowledge abou sou ces: di icul y o ind ele an unding sou ces o adap a ion.
o Res ic ions, condi ions, eligibili y c i e ia. Di icul ies in mee ing eligibili y c i e ia o g an s.
o Lack o capaci y o he PA o adminis e ecei ed unds.
In e iews conduc ed in he e i o ies highligh ed he p esence o he ollowing ba ie s:
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Figu e 13 Resul s o in e iews wi hin CLIMATEFIT e i o ies. Sou ce: CLIMATEFIT Task 2.1 Wo kshop
CLIMATEFIT D1.1 also iden i ied some key enable s o adap a ion inance om he li e a u e:
• Regula o y e o m (indus y, iscal, inancial, ma ke and mone a y) coupled wi h egula o y
ce ain y, o add ess ma ke agmen a ion and educe pe cep ions o high isk and unce ain y.
• Expanding he ac o space, hinking beyond cu en incumben s and c ea ing di e si y in adap a ion
inno a ion by in ol ing a ange o di e en in es o s and pa ne s and ac i ely including he p i a e
sec o .
• P i a e public pa ne ship, blended inance, and de- isking o capi al o o e come he us de ici
and mobilise addi ional inance.
• Le elling up adap a ion, wi h schola s, policymake s, and p ac i ione s p og essing uni o mly
adap a ion and mi iga ion.
• Bankable p ojec pipelines imp o emen s, inc easing also he knowledge, skills, and capaci y o
bo h in es o s and go e nmen s.
Wi hin he 20 in e na ional bes p ac ices analysed in CLIMATEFIT D1.1, ba ie s iden i ied e e o insu icien
public esou ces due o budge cons ain s and p io i ies in o he sec o s, o he lack o long- e m ( inancial)
s a egies, o limi s imposed by he legal amewo ks and o he lack o esou ces and incen i es o p i a e
landowne s. The ollowing ac o s ha e been explici ly iden i ied as enable s o success ul de elopmen o
he p ojec s:
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Figu e 18 Sc eensho s om G een Deal Going Local Handbook o F ance. Sou ce: Eu opean Commi ee o he
Regions

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5.5 Es ima e high le el cos s and bene i s
1.Pu pose o he module
This module consis s in s a ing a high-le el es ima ion o cos s and bene i s o he de ined longlis o
adap a ion op ions including ex e nali ies, e enues, and co-bene i s, since hei magni udes and
cha ac e is ics a e impo an ac o s o conside o he s ep o selec ion o inancing sou ces and
ins umen s.
This is because any in es men p oposi ion needs o a icula e cos s and how he e u ns will wo k, e en i
a a high le el. Re u ns a e no mally made h ough use cha ges, ees o o he income s eams o epay he
in e es and capi al.
Fu he mo e, i is also impo an o iden i y and dis inguish he social bene i s (e.g. communi y well-being
and quali y o li e), en i onmen al bene i s (e.g. sus ainabili y o ecosys ems) and economic bene i s (e.g.
cos sa ings, economic g ow h and p ospe i y o business, indi iduals and communi ies) o adap a ion
op ions, as well as who a e he bene icia ies.
This module should aim a ob aining an ini ial and gene al idea o he magni ude o cos and bene i s, while
a mo e de ailed and ully- ledged cos bene i analysis will be conduc ed in he in es men plan phase.
In an op imal si ua ion, hese magni udes should be quan i ied as much as possible, howe e he challenges
o his s ep a e acknowledged.
De ini ions
Cos s o adap a ion: The cos o adap a ion is he o al expendi u e dedica ed o adap a ion. Some imes he
cos o adap a ion is de ined as he o al in es men needs, which e e s o he le el o in es men equi ed o
implemen all he measu es desc ibed in a gi en adap a ion plan (na ional, subna ional, sec o al o o he ).
Ac ual spending consis s o he expendi u e mobilised o adap a ion measu es and acked and ca ego ised
acco dingly by go e nmen s, ei he annually o cumula i ely since he beginning o he planning pe iod.
Planned expendi u e is hose budge s ha go e nmen s ha e al eady commi ed o mobilising o comply
wi h he adap a ion plan bu ha e no ye disbu sed.
EEA (2023) Assessing he cos s and bene i s o clima e change adap a ion
Bene i s o adap a ion: The bene i s o adap a ion a e commonly assessed by calcula ing a oided losses,
i.e. conside ing he a oided di ec and indi ec damage o in as uc u e and asse s and he a oided dea hs
and well-being losses. They can also cap u e he e ec s on he local economy and he ancilla y impac s o
adap a ion. These include educing u u e isks, imp o ing he p oduc i i y o una ec ed esou ces and
people, boos ing inno a ion by seeking solu ions amid new challenges, inc easing he en i onmen al bene i s
and imp o ing ecosys em se ices.
EEA (2023) Assessing he cos s and bene i s o clima e change adap a ion
2. Inpu s and p e equisi es
This module is highly dependen on he module abou he longlis o adap a ion op ions and will in u n
se e as inpu o he modules on he iden i ica ion o he inancing gap and on he ime ho izon o
in es men .
3. Skills and Expe ise equi ed
Knowledge o cos and bene i s o implemen ing adap a ion op ions o con ac s wi h in e nal and ex e nal
s akeholde s and expe s who di ec ly wo k on implemen a ion o p ojec s. Unde s anding o who a e he
bene icia ies o adap a ion op ions and wha could be he po en ial e enue s eams.
4. Ac i i ies and e o s
E o s include consul a ions wi h echnical depa men s and expe s in he implemen a ion o adap a ion
op ions and e iew o documen a ion on exis ing simila op ions.
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5. S akeholde s o in ol e and he ole o he LRTs
• Clima e depa men
• Technical depa men s (e.g., mobili y, u ban planning, g een managemen , e c.)
• Financial depa men
• Local associa ions
• Ex e nal con ac o s
6. Ou pu s om he module
The ou pu o his phase is o ca y ou a cos -bene i analysis o he iden i ied adap a ion op ions. To
suppo his p ocess, he able below should be comple ed, associa ing each clima e isk wi h i s
co esponding loca ion, ele an adap a ion op ion o p ojec . This s uc u ed mapping will help p o ide a
high-le el es ima ion o expec ed cos s, po en ial bene i s, and he main bene icia ies.
As a minimum, cos es ima ions should be ca ego ized in o b oad classes— o example: small-scale op ions
(below X €), medium-scale (be ween X and Y €), and la ge-scale (abo e Y €). In mo e ad anced con ex s,
mo e p ecise cos anges o ac ual igu es should be p o ided, when a ailable.
Bene i s should be assessed ac oss h ee key dimensions: social, economic, and en i onmen al, wi h a high-
le el e alua ion o he posi i e impac s in each ca ego y.
I he longlis includes a high numbe o adap a ion op ions (e.g. mo e han 20), and i is no easible o
es ima e cos s and bene i s o all, a p io i iza ion exe cise should be conduc ed. Howe e , ca e mus be
aken o ensu e ha all clima e isks and ele an sec o s iden i ied in he i s module a e co e ed, and ha
he ull ange o adap a ion solu ion ypes—such as Na u e-based Solu ions (NbS), o ganiza ional measu es,
and g ey in as uc u e—is adequa ely ep esen ed.
Templa e 6 Da abase o cos s and bene i s o be illed in by PAs
Risk
Loca ion
Adap a ion op ion
o Adap a ion
p ojec
Cos s
Bene i s
Bene icia ies
7.Key issues o conside
In his module only a high le el app oach o assess he o de o magni ude o cos s and bene i s can be
su icien , while a mo e quan i a i e assessmen and de ailed analysis shall be conduc ed du ing he
in es men plan phase: his is why i is enough o unde s and he main adap a ion cos s ega ding he
adap a ion op ions and p ojec s and he po en ial bene i s, as a s a ing poin o he whole analysis ha will
be de eloped in he in es men plan phase . Since he e is no a s anda dized and unique ca alogue o his
kind o in o ma ion a Eu opean le el, PAs should y o ga he hem om di e en sou ces and, i i is
possible, sha e he di e en sou ces in which he Cos -Bene i Analysis in o ma ion whe e ound.
As a gene al app oach o his s ep da a on cos s and bene i s can be ob ained by o ganizing ailo ed
ound ables and/o wo kshops wi h s akeholde s and p ac i ione s in clima e change adap a ion om he
di e en PA depa men s. Thanks o hei expe ise and ne wo k hey may al eady ha e da a and
in o ma ion om p e ious and ongoing p ojec s, ini ia i es, ac ions, and s a egies wi hin hei domain.
Du ing hese ac i i ies he longlis o he selec ed adap a ion op ions will be ci cula ed o allow he
s akeholde s o s a assessing and ga he he cos da a needs. Such e o could be ca ied ou in his
manne , ollowing he diag am p esen ed in Figu e 19:
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• I he in o ma ion is a ailable wi hin he PA hanks o he p ac i ione s’ expe ise o can be e ie ed
h ough hei ne wo k, hen he da a can be di ec ly used
• I in o ma ion is no in e nally a ailable, cos s and bene i s can also be collec ed by looking a o he
p ojec s implemen ing he same kind o adap a ion op ion and pe o ming li e a u e e iews. This
could be done p e e ably by looking o p ojec s implemen ed in a eas close o he local e i o y o
each PA, so ha in p inciple da a should be mo e easily ans e able. Al e na i ely, PAs can
geog aphically expand hei esea ch make use o case s udies and bes p ac ices collec ed a he
Eu opean le el.
• I i is no possible o collec da a on he selec ed adap a ion op ion, simila op ions can also be
used as p oxy in his phase. The same app oach o s a ing om locally implemen ed p ojec
should be ollowed, eso ing o wide geog aphical a eas i mo e in o ma ion is needed.
Fu he mo e, since he e may be high a iabili y among di e en s udies and p ojec s because o
he con ex speci ici y, pu ing oge he in o ma ion om a a ie y o sou ces can also help o
inc ease eliabili y.
• The in o ma ion collec ed should be adap ed as much as possible and escaled, adjus ing i
acco ding o he speci ic cha ac e is ics o he p ojec and he e i o y (e.g. magni ude o he
in e en ion, p ice le el in case he in o ma ion is ob ained om ano he coun y). To his end,
in e ac ions and eedback loops among he di e en depa men s can also help in alida ing he
in o ma ion collec ed and ob ain a mo e eliable es ima e.
Figu e 19 P ocess o ob ain a i s o e iew o cos s and bene i s o adap a ion op ions. Sou ce: CLIMATEFIT
Since conduc ing an ex ensi e e iew o many di e en measu es would be oo esou ce- and ime-
consuming, i is impo an ha he sea ch is eally a ge ed o he isks and longlis ed op ions iden i ied in
he p e ious s eps o he me hodology. Collec ed da a need o e e o he adap a ion op ions hemsel es
and no o example o he implemen a ion o an en i e p ojec .
A his s age, es ima es could also be p esen ed as anges ollowing a high-le el app oach, wi h
iden i ica ion o mo e p ecise cos s and bene i s o be pe o med in he In es men Plan phase.
Finally, a common da abase could be cons uc ed and illed in as wo k p og esses. The idea is o ga he and
ca ego ize (acco ding o he isk add essed and he loca ion o he in e en ion) all in o ma ion collec ed by
PAs on cos s and bene i s o adap a ion op ions, so ha he da abase becomes a knowledge-sha ing
pla o m a ailable o e e yone and om which PAs hemsel es can build on.
8. Fu he eading/ guidance and esou ces
Resou ces: Clima e-ADAPT case s udy explo e
The ca alogue showcases many implemen ed adap a ion op ions and ini ia i es, p o iding also in o ma ion
on cos s and bene i s. Use s can iden i y he mo e ele an cases by il e ing acco ding o adap a ion
sec o s, clima e change impac s, key ype measu es and adap a ion app oaches. The case s udies can be
also accessed h ough he Clima eADAPT esou ce ca alogue.
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Figu e 20 Sc eensho om Case S udy Explo e . Sou ce: Clima eADAPT
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5.6 Iden i y he inancing gap
1. Pu pose o he module
This module consis s in compa ing he b oad es ima e o he agg ega ed, o al cos s and bene i s wi h he
esou ces ha he PAs ha e al eady a ailable and hei planned expendi u e.
The di e ence de e mines he gap ha will need o be illed wi h addi ional esou ces, ei he om public
sou ces o p i a e ones.
De ini ions
Adap a ion inance gap: The di e ence be ween he es ima ed cos s o mee ing a gi en adap a ion
a ge and he amoun o inance a ailable. Te m commonly e e ing o na ional, con inen al, o global
inance gaps. I can be applied o he local le el. (CLIMATEFIT glossa y)
Adap a ion unding gap: The di e ence be ween he a ailable capi al o a gi en adap a ion ini ia i e o
p ojec and wha is equi ed o ully co e he cos s o he same. Te m commonly e e ing o sub-
na ional inance gaps and used in e changeably wi h adap a ion inance gap. (CLIMATEFIT glossa y)
2. Inpu s and p e equisi es
This module is highly dependen on he module abou he high-le el es ima ion o cos s and bene i s and
will in u n be ins umen al o he de elopmen o he modules on he ime ho izon o in es men and he
iden i ica ion o po en ial ange o inancing sou ces and ins umen s.
3.Skills and Expe ise equi ed
Knowledge o inancial p ocesses in gene al, and i in pa icula he e a e some ela ed o clima e
adap a ion. Knowledge o budge alloca ion wi hin he PA and ac oss he di e en depa men s, especially
budge alloca ed o clima e aspec s, o example annual budge o ini ia i es in pipeline. I i is possible, will
be use ul o map and sha e speci ic adap a ion p ojec s and he ela i e cos s. Some CLIMATEFIT pa ne s
ha e al eady de ined budge alloca ions o speci ic adap a ion op ions and ha e b oken hem down in o
indi idual adap a ion p ojec s. This allows o a mo e p ecise es ima ion o speci ic cos s and inancial needs.
Addi ionally, he e may be p i a e sec o o business-led ini ia i es ha egula ly inance adap a ion ac ions.
These ac o s could play a key ole in suppo ing he unding o adap a ion measu es, po en ially
con ibu ing signi ican ly o he o e all in es men s a egy.
4. Ac i i ies and e o s
E o s include consul a ions wi h and in o ma ion e ie al om he inancial depa men , e iew o
alloca ion o unds and budge ac oss he di e en uni s/depa men s.
5. S akeholde s o in ol e and he ole o he LRTs
• Financial depa men
• Budge uni s
• Technical depa men s (e.g., mobili y, u ban planning, g een managemen , e c.)
• Ci y manage
• Speci ic uni s o depa men s ocused on Sus ainabili y
6. Ou pu s om he module
Iden i ica ion o he quan i a i e di e ence (i possible) o a leas a en a i e es ima ion be ween he
a ailable esou ces (including budge alloca ed om he municipali y o clima e adap a ion ini ia i es and
possible o he p i a e ini ia i es) and he eal need o he in es men s. I he budge does no co e he
en i e in es men budge , he municipali y will need in es men o ill he gap.

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7. Key issues o conside
Wi hin he PA, he di e en lines o budge ha could be used o adap a ion pu poses should be
iden i ied ac oss he di e en depa men s, h ough exchanges o in o ma ion. In his module, he
in ol emen o he inance depa men is c ucial.
PAs can c oss e e ence in o ma ion on he budge wi h he longlis ed adap a ion op ions and hei
es ima ed cos s and bene i s and in es iga e di e en channels (Table 2).
Table 2 Channels o be in es iga e wi hin PAs
Channels
Speci ic unds and s eams o adap a ion measu es al eady ea ma ked
Consul a ion wi h he speci ic depa men s who would be in cha ge o he implemen a ion o he op ions
Consul a ion wi h he inancial uni
Iden i ica ion o al eady exis ing ag eemen s wi h p i a e en i ies
T acking public expendi u e on clima e change adap a ion is impo an o p o iding a baseline o
iden i ying he inancing gap, and o helping e i o ies o p io i ise and plan. Cu en expendi u e on
adap a ion in he CLIMATEFIT e i o ies is no well documen ed. Cos -bene i analyses, ulne abili y o
easibili y s udies, and impac assessmen s, when conduc ed, a e usually ou sou ced by PAs (CLIMATEFIT
D1.1).
When planning clima e adap a ion in es men s, public au ho i ies ace he challenge o alloca ing esou ces
e icien ly o maximize bene i s and minimize cos s. A highly e ec i e app oach is o b eak down adap a ion
op ions in o adap a ion p ojec s, indi idual ac i i ies o ope a ional componen s. This disagg ega ed iew
allows o mo e p ecise assessmen o bo h he cos s and he bene i s associa ed wi h each speci ic ac ion,
making i easie o iden i y he mos impac ul and sus ainable measu es. I also enhances he adap abili y o
he s a egy o local needs and imp o es anspa ency and communica ion wi h s akeholde s h oughou
he planning and decision-making p ocess.
8. Fu he eading/ guidance and esou ces
Resou ces
T acking Adap a ion Finance, CPI (2019)
T acking Adap a ion Finance: Ad ancing Me hods o Cap u e Finance Flows in he Landscape.
The epo p oposes me hods o iden i y and ack s eams o adap a ion inance. In he con ex o he
in es men s a egy, his documen and especially he able iden i ying he keywo ds by sec o can be
use ul o iden i y wo ks eams and ac i i ies wi hin PAs’ depa men s ha in ol e aspec s o adap a ion
inance and whose esou ces may be he e o e agged o adap a ion.
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Figu e 21 Pa o able on keywo d lis by sec o o illus a i e pu pose. See ull able in CPI documen .
Sou ce: CPI
COST BENEFIT ANALYSIS OF CLIMATE ADAPTATION OPTIONS SUPPORTED BY THE ADAPT PLAN
PROJECT - A Cos Bene i Analysis o Clima e Adap a ion Op ions, UNDP
The epo applies a comp ehensi e Cos -Bene i Analysis (CBA) o e alua e he socio-economic iabili y
o a p oposed in es men p ojec , using he me hodology ecommended by he Eu opean Commission's
guidelines o majo in es men p ojec s (speci ically, 2014/C 209/01). This app oach mo es beyond
assessing he inancial easibili y o he p ojec alone, aiming ins ead o unde s and i s long- e m alue o
socie y as a whole. The analysis begins by es ablishing a clea compa ison be ween wo scena ios: one
wi h he implemen a ion o he p ojec , and one wi hou i ( he so-called "do-no hing" o baseline scena io).
This compa a i e amewo k helps o isola e he di ec impac s o he p ojec . The epo hen quan i ies
all he ele an economic cos s and bene i s. Cos s include capi al expendi u es, as well as ongoing
ope a ional and main enance expenses. On he bene i side, he analysis conside s angible ad an ages
such as ime sa ings, educed en i onmen al impac s (e.g., lowe emissions), ope a ional e iciencies, and
imp o emen s o quali y o li e o public sa e y.
To ensu e compa abili y o e ime, all u u e cos s and bene i s a e discoun ed o hei p esen alue,
using a discoun a e o 4% as ecommended o I aly by EU guidance. This allows o he calcula ion o
se e al key indica o s, such as:
• Economic Ne P esen Value (ENPV): he o e all ne bene i o he p ojec ,
• Economic In e nal Ra e o Re u n (EIRR): he a e a which bene i s equal cos s,
• Bene i -Cos Ra io (B/C a io): he p opo ion o bene i s o cos s.
Finally, he epo conduc s bo h a sensi i i y analysis ( o es how changes in key a iables a ec he
esul s) and a isk analysis ( o iden i y po en ial unce ain ies and how hey migh in luence he p ojec 's
pe o mance).
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5.7 De ine ime ho izon o in es men
1.Pu pose o he module
The ou come o his module should be a high-le el alloca ion o he in es men needs in o he di e en
ime ho izons, in o de o ob ain a gene al imeline. In o he wo ds, his means dis inguishing he le el o
in es men needed o e di e en ime pe iods.
2. Inpu s and p e equisi es
This module is highly dependen on he modules abou he high-le el es ima ion o cos s and bene i s and
he one on he inancing gap. In u n, i will se e o comple e he modules on he iden i ica ion o po en ial
inancing sou ces and ins umen s and he p elimina y ma chmaking.
3.Skills and Expe ise equi ed
Knowledge abou he imescale o implemen a ion o adap a ion op ions and he ime ho izon o hei
inancing.
4. Ac i i ies and e o s
E o s include he e iew o he imescale o he implemen a ion o and he in es men needs o clima e
adap a ion op ions, consul ing wi h inancial and echnical depa men s.
5. S akeholde s o in ol e and he ole o he LRTs
• Financial depa men
• Budge uni s
• Technical depa men s (e.g., mobili y, u ban planning, g een managemen , e c.)
• De elopmen agencies
• Ci y manage
6. Ou pu s om he module
The ou pu o he module is o iden i y he in es men ime ho izon by alloca ing ac ions ac oss he sho ,
medium, and long e m. The alloca ion o in es men s ac oss hese ime ames will be de e mined by Public
Au ho i ies (PAs) based on hei in es men needs and s a egic objec i es, aligned wi h he selec ed
adap a ion ac ions and p ojec s. This p ocess will be suppo ed by he in eg a ion o he able below, which
helps con ex ualize and s uc u e he in es men ho izon.
Templa e 7 o be illed in by PAs
Adap a ion op ion o
Adap a ion p ojec
Sho e m (1-5 yea s)
Medium e m (5-10
yea s)
Long e m (> 10 yea s)
The able abo e is jus a po en ial example o sho , medium and long e m ega ding he ime ho izon o
in es men . Gene ally, he e’s no a amewo k ha indica es a speci ic ime ho izon o in es men , ins ead
he e a e some olun a y ecommenda ions ha can help he analysis.
Fo example, he TCFD (Task o ce on Clima e- ela ed Financial Disclosu e, now in eg a ed in IFRS S2) ask o
gi e a “desc ip ion o wha hey conside o be he ele an sho -, medium-, and long e m ime ho izons,
aking in o conside a ion he use ul li e o he o ganiza ion’s asse s o in as uc u e and he ac ha
clima e- ela ed issues o en mani es hemsel es o e he medium and longe e ms”: he ime ho izons
ha e o be aligned wi h he expec a ions, he needs and he p ojec s o he speci ic municipali y.
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Ano he in e es ing e e ence can be he Co po a e Sus ainabili y Repo ing Di ec i e (CSRD) ha subs i u es
he Non- inancial decla a ion: “in line wi h he p o isions o he ESRS (CSRD) s anda ds, he o ganiza ion
de ines he ime ho izons as ollows: sho e m (0–3 yea s), medium e m (3–10 yea s), long e m (o e 10
yea s), consis en ly wi h he use ul li e ho izon o i s asse s and co po a e s a egic plans.” Howe e , i a
municipali y decides o choose speci ic ime ho izon, he ule is o comply wi h he egula o y scena io o
explain why hey decide o go ahead wi h ano he op ion. Il mos o he cases, he municipali y ha e o
decide he bes in es men ime ho izon, aligned wi h he adap a ion ini ia i es in pipeline.
7. Key issues o conside
S a ing om he iden i ied adap a ion op ions and in es men needs, c ea e a so o imeline o dis inguish
be ween sho /medium/long e m o ha e a clea o e iew o he magni ude o in es men s needed in
each phase.
This module also connec s o module 1 on p io i ising isks and sec o s, and module 4 on longlis ing
adap a ion op ions by looking in mo e de ail a p io i ies o in es men op ions and hei sho lis ing o
c ea e po olios la e on. I also helps in placing op ions in p o isional o de o implemen a ion in he
in es men plan phase.
Gene ally, municipali ies incu cos s wi hou immedia e e u ns when in es ing in clima e adap a ion.
Bene i s ypically eme ge in he medium e m, al hough his a ies depending on he ype o p ojec .
Fo ins ance, a ge ed adap a ion measu es—such as depa ing o he cons uc ion o lood p o ec ion
walls— can yield esul s ela i ely quickly, as hey a e s aigh o wa d o implemen and highly e ec i e. In
con as , la ge -scale ini ia i es like u ban egene a ion o he c ea ion o g een spaces o en equi e mo e
ime, esou ces, and coo dina ion, wi h bene i s ypically ma e ializing o e he medium o long e m. All o
his will enable a s onge alignmen wi h he In es men Planning phase o eseen in WP3.
8. Fu he eading/ guidance and esou ces
Resou ces: Guidance o applying he Enabling Resilience In es men F amewo k (CSIRO 2022) and
P2R
The guidance desc ibes a p ocess o gene a ing and hen sc eening op ions based on simple c i e ia
(p o iding guiding ques ions o help he assessmen such as ime ame, and in e dependencies on o he
ac i i ies) and hen p io i ising and placing hem in a p o isional o de o implemen a ion (i.e. sequencing).
In a nex s ep, op ions a e so ed in o ounda ional and enabling op ions (lea ning, capaci y building, o
o he ins i u ional op ions); o he op ions a e unnelled in o a phase 2 o build in es men cases o
unding and inancing o in as uc u e o asse s.
P2R guidance simila ly includes a s ep whe e op ions a e p io i ised and sequenced. One conside a ion is
he ime ame o when he op ions need o be implemen ed and paid o (based on iming o isks), and o
when bene i s (including inancial e u ns bu also non- inancial such as he alue o in o ma ion) a e
expec ed. P2R adop s he po olio o ‘building block’ app oach which ca ego ises ea ly ac ions in o
low/no eg e s, clima e sma design and adap i e planning (upda ed in he UK’s CCRA3 Technical
Repo (2021) sec ion 2.3). This aming ocuses on he mos u gen isks and he unce ain y o clima e
change.
CSIRO guidance and P2R use an ‘adap a ion pa hways’ app oach o p io i ise and sequence op ions in o
po olios. Adap a ion pa hways a e de ined by he IPCC 2021) as “a se ies o adap a ion choices in ol ing
ade-o s be ween sho - e m and long- e m goals and alues. These a e p ocesses o delibe a ion o
iden i y solu ions ha a e meaning ul o people in he con ex o hei daily li es and o a oid po en ial
maladap a ion”. P2R ecommends de eloping in es men s a egies o each pa hway (one pa hway is
de eloped o each p io i y a ea o sec o in connec ion o he egion’s s a egic objec i es. Adap a ion
pa hways a e de eloped as pa o he adap a ion planning p ocess.
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Figu e 29 Mapping o sou ces, ac o s and ins umen s. Sou ce: Glasgow esou ce mobilisa ion plan
OECD Clima e Adap a ion In es men F amewo k
Fo he decision and p io i isa ion o inancial ins umen s, PAs should make use o bo h exis ing inancial
ins umen s hey a e amilia wi h and explo e new, po en ially inno a i e ins umen s ha can be aligned wi h
iden i ied adap a ion op ions and speci ic adap a ion p ojec s. Fo example, he OECD (2024) p oposes a
s uc u ed amewo k o guide go e nmen s in iden i ying and p io i izing inancial ins umen s o clima e
adap a ion. Cen al o his app oach is he ansla ion o adap a ion p io i ies—o en es ablished h ough
Na ional Adap a ion Plans—in o obus inancing s a egies, such as adap a ion in es men plans. The
amewo k emphasizes he s a egic use o public ools (e.g., di ec expendi u e, p ocu emen , PPPs), p i a e
mechanisms (e.g., g een bonds, equi y), and blended inance. P io i iza ion is guided by con ex -speci ic
c i e ia including clima e impac po en ial, socio-economic e u ns, scalabili y, and alignmen wi h na ional
policy goals. In his amewo k is p o ided a se o diagnos ic ques ions designed o e alua e enabling
condi ions and ma ch inancial ins umen s wi h sec o al needs and isk p o iles, he eby p omo ing an
e idence-based, sys emic selec ion p ocess.

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5.9 Ma ch ypes o adap a ion op ions wi h inancial en i ies/ins umen s
1. Pu pose o he module
All he wo k pe o med in he p e ious modules and he in o ma ion collec ed should be pu oge he o
ob ain a b oad o e iew o he longlis ed op ions and he iden i ied unding/ inancing possibili ies.
2. Inpu s and p e equisi es
O e all, his module builds on all he p eceden modules, and i can be conside ed in some sense he inal
module o he in es men s a egy, which d aws oge he all he e o s.
3. Skills and Expe ise equi ed
Knowledge o inancial sou ces and ins umen s, knowledge o adap a ion op ions. Abili y o make
connec ions and me ge he in o ma ion collec ed, conside ing bo h gene al and con ex speci ic aspec s.
4. Ac i i ies and e o s
E o s include he e iew o he in o ma ion collec ed and he conside a ion o cha ac e is ics o adap a ion
op ions, p ojec s and in es men s, weigh ing he di e en possibili ies and combina ions also wi h he help
o he esou ces p esen ed below.
5. S akeholde s o in ol e and he ole o he LRTs
• Clima e depa men
• Financial depa men
• Ci y manage
• Consul an s
6. Ou pu s om he module
The p io i y is o ca y ou ma chmaking be ween adap a ion op ions o p ojec s and ele an inancing
sou ces and ins umen s. This p ocess will be suppo ed by he able below.
Templa e 9 o be illed in by PAs
Adap a ion op ion o Adap a ion
p ojec
Financing sou ces
Ins umen s
7. Key issues o conside
The c ea ion and use o an in es men compass as he one showed below may be use ul, since i connec s
in o ma ion on in es men landscape, FIES, adap a ion needs and in e en ions, all e y speci ic o he
na ional and local con ex . Inpu s o pe sonalise his compass can come om he adap a ion in es men
landscape o CLIMATEFI D1.1, he p e ious modules o he in es men s a egy and he CLIMATEFIT D1.1
bes p ac ices da abase.
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Templa e 10 Gene alized in es men compass, o be illed in by PAs and modi ied acco ding o hei speci ici ies
The high-le el and p elimina y ma ching should happen conside ing he cha ac e is ics o he inancial
sou ces and ins umen s (Sec ion 6.8), he economic and inancial indica o s, and he cha ac e is ics o he
adap a ion op ions hemsel es (Sec ions 6.4 o 6.7), such as he size, cos s and inancing gap, he po en ial
cash lows o e enues ha he p ojec could gene a e and he ime ho izon,
P ojec s may also be bundled oge he , c ea ing a package ha may be mo e a ac i e o po en ial FIEs:
o example, adap a ion op ions able o gene a e e enues may be bundled wi h op ions ha canno , o
di e en smalle op ions maybe be ga he ed o each a c i ical size.
A he same ime, also di e en inancing sou ces and ins umen s can be used o he same p ojec , o
example o co e di e en implemen a ion phases.
Some p ac ical examples showing how di e en inancial ins umen s ha e been used o inance clima e
adap a ion p ojec s a e collec ed in he CLIMATEFIT D1.1 bes p ac ices da abase, as well as in he P2R
ca alogue o sou ces and ins umen s (case s udies sec ion).
8. Fu he eading/ guidance and esou ces
Resou ces
Ne Ze o Ci ies Finance Guidance Tool
The ool helps ci ies in inding he bes unding sou ces o hei p ojec s. By illing ou a ques ionnai e,
PAs can ou line hei inancial needs and il e h ough a ange o inancing op ions ha ma ch hei
speci ic equi emen s.
Clima e Finance Decision Making T ee
The amewo k de ines a se ies o ques ions ha he PAs need o conside o e alua e a ious inancing
possibili ies, on he basis o he cha ac e is ics o he planned p ojec and o he PA i sel . Fu he mo e,
each p oposed inancing ool p oposed is desc ibed wi h ad an ages and disad an ages.
E o ! Hype link e e ence no alid.
E ec i e clima e adap a ion inance depends on he s a egic alignmen o speci ic adap a ion p ojec s
wi h sui able inancial ins umen s. The OECD (2024) highligh s ha he clea e and mo e conc e e he
adap a ion ini ia i e—whe he in as uc u al, ecological, o social— he easie i becomes o ma ch i wi h
an app op ia e inancing sou ce. Financial ools a y in hei isk appe i e, e u n expec a ions, and
eligibili y c i e ia; hus, p ojec s wi h de ined ou comes, imelines, and co-bene i s a e mo e likely o
a ac suppo . Fo ins ance, highly concessional unding may sui non- e enue-gene a ing social
adap a ion measu es, whe eas e enue-linked in as uc u e p ojec s may be ma ched wi h g een bonds
o blended inance schemes. The Clima e Adap a ion In es men F amewo k unde sco es ha a
s uc u ed pipeline o adap a ion p ojec s is essen ial o engage bo h public and p i a e capi al e icien ly,
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ensu ing ha unding mechanisms a e ailo ed o he scale, na u e, and expec ed impac o each
in e en ion
E o ! Hype link e e ence no alid.
Success ul clima e adap a ion inancing hinges on he abili y o align speci ic adap a ion p ojec s wi h he
mos app op ia e inancial ins umen s. As highligh ed by bo h he OECD (2024) and Adap a ion Sco land
(2024), his “ma chmaking” p ocess equi es a clea unde s anding o p ojec cha ac e is ics—such as
scale, isk p o ile, and po en ial e u ns—and how hese align wi h he equi emen s o di e en unding
sou ces. Public g an s may sui communi y-based o non- e enue-gene a ing ini ia i es, while e enue-
linked o cos -sa ing p ojec s may a ac p i a e o blended inance. The mo e conc e e and well-
de ined he adap a ion p ojec —comple e wi h measu able ou comes and co-bene i s— he g ea e he
likelihood o secu ing sui able inancing. This ein o ces he need o s uc u ed p ojec pipelines and
inance- eady business cases as essen ial ools o b idge adap a ion needs and a ailable capi al.
Glasgow Resou ce Mobilisa ion Plan
Ma ching adap a ion in e en ions wi h sou ces o inance. E en i no ully aligned wi h he module, i can
be used as inspi a ion by Pas.
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Figu e 30 Ma ching o adap a ion in e en ions wi h sou ces o inance. Sou ce: Glasgow esou ce
mobilisa ion plan
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5.10 Go e nance and esou ces
1.Pu pose o he module
This module aims a iden i ying all he ele an ac o s/en i ies o be in ol ed in he de elopmen o he
in es men s a egy. I is key, h oughou all he modules, o include bo h Pas in e nal ac o s (e.g. di e en
depa men s) and ex e nal ac o s, e lec ing on he ole o each o hem and aking in o accoun he
di e en go e nance mechanisms as well as he ole o LRTs.
2. Inpu s and p e equisi es
This module is highly connec ed wi h all he o he modules o he in es men s a egy, ac ing as an
o e a ching componen ha helps pinpoin ing he impo an and app op ia e con ibu o s o each o hem.
3. Skills and Expe ise equi ed
Unde s anding o how he PA is in e nally s uc u ed in e ms o depa men s, hei ac i i ies and
esponsibili ies. Knowledge o he ex e nal s akeholde s, hei in e es s and ac i i ies ca ied ou .
4. Ac i i ies and e o s
E o s include exchanges and consul a ions wi h he s akeholde s (in e nal and ex e nal) o iden i y oles,
capaci ies and assign esponsibili ies, also by e iewing and po en ially ex ending he analysis o he
o ganisa ional s uc u e o he PA.
5. S akeholde s o in ol e and he ole o he LRTs
• Clima e depa men
• Financial depa men
• Planning depa men
• Technical depa men s
• Ci y manage
6. Ou pu s om he module
The ou pu o his inal module is o iden i y he ac o s and con ibu o s ha need o be in ol ed in he
u u e de elopmen o he in es men s a egy, wi h a b eakdown by indi idual module.
Templa e 11 o be illed in by PAs
Modules
In e nal
ac o s
Con ibu ion -
in e nal
Ex e nal
ac o s
Con ibu ion -
ex e nal
1 Assessmen and p io i isa ion o clima e isks
and sec o s
2 Con ex o e iew
3 Ba ie s and enabling condi ions
4 Longlis ini ial se o adap a ion op ions
5 High le el es ima ion o cos s and bene i s
6 Iden i ica ion o inancing gap
7 Time ho izon o in es men
8 Range o possible inancing sou ces and
ins umen s
9 Ma chmaking be ween ypes o adap a ion
p ojec s and po en ial FIEs/ins umen s

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7. Key issues o conside
The de elopmen o he in es men s a egy in PAs should no be ca ied ou h ough singula app oaches
o he in ol ed pa ne s bu a cho al e o .
I is impo an o ecognise ha no a single ac o /depa men can ca y ou all he modules. The e should
be alloca ion o asks and sha ed esponsibili y among he di e en depa men s, acco ding o hei
compe ences, he esou ces a ailable and a oiding silo app oaches. Go e nance mechanisms should be
pu in place o ensu e ac i e pa icipa ion. Di e en ypes o p o ile a e impo an , such as echnical uni s,
uni s esponsible o clima e adap a ion, inancial depa men s and decision make s.
Conside ing he impo ance o he human ac o , o each o he modules o he in es men s a egy i can
be use ul o iden i y he di e en ac o s o in ol e and de e mine hei ole, con ibu ions and
esponsibili ies, o ob ain a clea o e iew.
Once all he elemen s o he in es men s a egy a e b ough oge he and ag eed among pa icipan s, he
way o wa d will consis in p oceeding wi h he de elopmen o he mo e de ailed in es men plan, in o de
o s a illing in he inancing gap.
8. Fu he eading/ guidance and esou ces
Resou ces
S akeholde Engagemen : A Good P ac ice Handbook o Companies Doing Business in Eme ging
Ma ke s
The documen published by he IFC (In e na ional Finance Co po a ion) add esses p ecisely he issue o
managing s akeholde engagemen in p ojec s, especially in eme ging ma ke s. He e is a summa y o i s
main con en s. The objec i e o he documen is op o ide p ac ical guidelines o e ec i ely in ol ing
s akeholde s (s akeholde s) in co po a e p ojec s, in o de o imp o e social and en i onmen al
sus ainabili y, educe isks and build us ela ionships.
S akeholde Engagemen : A Road Map o Meaning ul Engagemen (Fundación SERES)
This guide p o ides a p ac ical amewo k o o ganiza ions—including public au ho i ies— o de elop
e ec i e s akeholde engagemen s a egies. I ou lines key phases such as s akeholde iden i ica ion,
p io i iza ion, dialogue planning, and long- e m ela ionship building. The documen emphasizes he
s a egic alue o engagemen in decision-making, isk managemen , and sus ainable de elopmen .
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6 Phase 2: De elop you In es men Plan
The sec ion ela ed o he de elopmen o he In es men Plan phase will be de eloped in de ailed unde
Deli e able 3.1.
Funded by he Eu opean Union. Views and opinions exp essed a e howe e hose o he
au ho (s) only and do no necessa ily e lec hose o he Eu opean Union o CINEA.
Nei he he Eu opean Union no he g an ing au ho i y can be held esponsible o hem.
Con iden ial
Annex – Addi ional esou ces o in es men s a egies
Module 1: Assess and p io i ise clima e isks and sec o s
ISO s anda ds (3100, 14091, 14092)
Clima eADAPT RAST – S ep 2
EU Mission Adap a ion o clima e change - Guide o clima e isk assessmen
Climaax CRA Handbook
A changing clima e o de elopmen , Clima e Ready Clyde and Adap a ion Sco land (Sni e ), Lindsay, R. S.,
England, K. and Beswick, A. (2019)
P inciples o Clima e Risk Managemen o Clima e P oo ing P ojec s, Paul Wa kiss, Robe Wilby, and
Cha les And ew Rodge s (2020)
ISO s anda ds
ISO 31000 s anda d on isk managemen - Guidelines
ISO 14091 on adap a ion o clima e change - Guidelines on ulne abili y, impac s and isk assessmen
ISO 14092 on adap a ion o clima e change - Requi emen s and guidance on adap a ion planning o local
go e nmen s and communi ies
Clima eADAPT RAST - S ep 2
2.1 De ining he co e elemen s: choose guiding p inciples (e.g. jus esilience), he me hodology o echnical
isk analysis and he go e nance (e.g. owne ship o da a, communica ion o esul s and s akeholde
engagemen ). The me hodology depends on local condi ions (a ailable esou ces, da a, s akeholde
in ol emen , po en ial isks, desi ed ou pu s) and i should align wi h na ional p ocedu es and assessmen s.
Aim o he me hodology:
• De ine he assessmen 's scope, objec i es, ime ame, clima e change scena ios and geog aphical
co e age. The speci ic people, sec o s and egions o be assessed should be clea ly ou lined.
• Iden i y pas and cu en isks.
• An icipa e u u e isks and oppo uni ies esul ing om clima e change.
• E alua e iden i ied isks.
I is essen ial o in ol e all s akeholde s (expe s, local ac o s, sec o ep esen a i es, ci izens, ulne able
g oups) and de e mine how hey will be engaged o ensu es ele ance, e ec i eness and inclusion.
2.2 Iden i ying isks: conside ulne abili y and b oade impac s.
• Collec local da a on clima e isk: sys ema ic in en o y o isks on pas clima e, eco ds o da a o
mul iple haza ds, in o ma ion on exposu e and ulne abili y (based on local geog aphical and
socio-economic ea u es) and assessmen s a highe le el, na ional o con inen al.
• Unde s and and conside ulne abili y: iden i y ulne able a eas and mos socially ulne able
g oups (e.g. popula ion densi y o age s uc u e) wi h hei needs, bo h in e ms o gene al sensi i i y
o clima e impac s and exposu e o asse s, also o p io i ize adap a ion e o s.
• Conside ans- egional and cascading impac s: collabo a ion is essen ial among local o egional
au ho i ies and neighbou ing ju isdic ions, as well as among sec o s, o add ess sha ed isks and
na iga ing di e en poli ical, legal and ins i u ional con ex s.
2.3 Assessing clima e isks: combine da ase s on haza ds, exposu e and ulne abili y, unde cu en and
u u e clima ic and socio-economic condi ions. Selec mul iple u u e clima e scena ios o accoun o a
ange o possibili ies (e.g., 'wo s case', 'bes case', 'mid- ange') and conside ac o s like spa ial scale,
baseline pe iod, p ojec ion imeline, he emission scena io and socio-economic scena io. Assessing clima e
isks likelihood helps in de ining p io i y a eas and es ablish adap a ion objec i es.
2.4 De ining key isks and adap a ion objec i es: iden i y p io i y a eas based on he se e i y o impac s (who
and wha is mos a isk), ocusing on isks in he sho , medium and/o long e m, conside ing whe he
impac s a e al eady occu ing now and se o wo sen due o clima ic o non-clima ic d i e s, de e mining i
c i ical in as uc u e o wi h long li espans a e a isk.
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EU Mission Adap a ion o clima e change - Guide o clima e isk assessmen
Guidance and examples in he o m o ma ices and ables.
Ac ion 1. P epa ing he g ound: conside clima e isk assessmen scope in ela ion o egional o local
au ho i y’s powe s, me hodological app oach and i s alignmen wi h exis ing isk managemen p ocesses,
s akeholde s in ol emen o ensu e assessmen ’s ele ance, impo ance and legi imacy.
Ac ion 2. Assessing clima e ulne abili ies: iden i y and a e adap i e capaci y o people, ecosys ems, asse s,
and se ices and hei (di ec and indi ec ) sensi i i ies o clima e- ela ed haza ds. Vulne abili ies a ings a e
ob ained combining a ings o sensi i i ies and adap i e capaci ies.
Ac ion 3. Iden i ying u u e scena ios: choose u u e scena ios o unde s and he ex en o which clima e-
ela ed haza ds may change. Impo an o selec mo e han one scena io o ake accoun o unce ain ies
and iden i y nea - e m (2021-2040), medium- e m (2041-2060) and/o long- e m (2081-2100) scena ios.
I may make mos sense o use he same p ojec ions used by you na ional adap a ion s a egy o plan.
Ac ion 4. Assessing u u e po en ial clima e- ela ed impac s: iden i y and a e he exposu e o u u e
clima e- ela ed haza ds o each scena io. Ra ings o po en ial clima e- ela ed impac s a e ob ained
combining he a ings o ulne abili ies and exposu e.
Ac ion 5. Assessing clima e isks (and oppo uni ies): a e he likelihood o u u e po en ial clima e- ela ed
impac s and combine hem wi h he a ings o hei magni ude o de e mine high clima e isks and
oppo uni ies o ocus on when subsequen ly iden i ying adap a ion op ions.
Ac ion 6. Communica ing unce ain ies: conside and communica e unce ain ies ela ed o da a and
knowledge used o de e mine he sensi i i ies, adap i e capaci ies, u u e scena ios, exposu e o clima e-
ela ed haza ds, he likelihood o clima e- ela ed impac s, and he iming and spa ial dis ibu ion o clima e
isks (and oppo uni ies).
Climaax CRA Handbook
4-yea Ho izon Eu ope (2023-2026) p ojec ha p o ides inancial, analy ical, and p ac ical suppo o
egional clima e isk assessmen s, con ibu ing o ha moniza ion and consolida ion o clima e isk
assessmen (CRA) p ac ices by p o iding guidance, ools and da ase s. I includes a s anda dized amewo k
and a oolbox which hos s da a, models and u ili ies and p o ides access o Eu opean and global open da a
a chi es in eg a ed wi h local da a and p ocedu es.
Highligh s o he CLIMAAX F amewo k and Toolbox:
• Rele an s eps ha a e encou aged o be ollowed o a CRA wi h he possibili y o including
quan i a i e and quali a i e aspec s o maximizing ou pu quali y.
• S akeholde engagemen p ocesses
• Selec ion o haza ds ha ha e subs an ial socie al impac and will be a ec ed by clima e change.
• Selec ion o indica o s o me eo ological o hyd ological haza ds and socie al o ecological
impac s ha can be used o designing and moni o ing adap a ion and isk managemen s a egies.
• Use o clima e and socio-economic scena ios ele an o impac s and isks ha needs o be
accoun ed o by egions and communi ies o adap a ion/ isk managemen s a egies.
Figu e 31 Climaax CRA F amewo k. Sou ce: Climaax
The amewo k is composed o 5 pa icipa o y s eps and ensu es social jus ice and equi y.
Scoping phase: de ine objec i es, se he con ex , iden i y s akeholde s and assign isk owne ship.
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As men ioned, o now he e is no a uni ied ca alogue/da abase wi h his ype o in o ma ion. Howe e , he
ongoing (2024-2027) Ho izon Eu ope p ojec “S udy on he mac o-economic impac s o he clima e
ansi ion” aims, among o he objec i es, a quan i ying he in es men needs o adap a ion o clima e
change ac oss all EU Membe S a es, iden i ying adap a ion measu es and hei cos ing.
Module 6: Iden i y he inancing gap
Mains eaming, accessing and ins i u ionalising inance o clima e change adap a ion, OPM (2017)
Mains eaming, accessing and ins i u ionalizing inance o clima e change adap a ion
OPM Repo “Mains eaming, accessing and ins i u ionalising inance o clima e change adap a ion”
p o ides an o e iew and compa ison o app oaches o acking expendi u es, including budge a y
analyses, public expendi u e e iews and budge agging sys ems. I illus a es bo h objec i es-based and
bene i s-based app oaches o es ima ing he clima e change ele ance o p ojec s. They wo k by lagging
budge codes ha a e ele an o CCA/M on a go e nmen inancial managemen IT sys em o show he ull
public expendi u e.
G een budge ing app oaches, including g een budge agging, can also suppo de eloping a baseline o
expendi u e as an inpu o es ablishing adap a ion unding needs, cos s, and bene i s. G een budge agging
is used o help ack exis ing and planned adap a ion expendi u e. While he app oach has eme ged in
na ional con ex , hey a e also applicable o egions (OECD, 2022a). Se e al ci ies a e pa icipa ing in he C40
Clima e Budge ing P og amme o example.
Module 8: Iden i y he ange o possible inancial sou ces and ins umen s
Ne Ze o Ci ies “Ci y clima e inance: landscape, ba ie s and bes p ac ices” (2022)
Regilience Funding Oppo uni ies eposi o y
NAP Global Ne wo k In en o y o inno a i e inancial ins umen s o clima e change adap a ion
G20/OECD Repo on app oaches o inancing and in es ing in clima e- esilien in as uc u e
Financial Ins umen s Lib a y - Ci ies Clima e Finance Leade ship Alliance
Co enan o Mayo s Financing Oppo uni ies and Inno a i e Financing Schemes
Ne Ze o Ci ies “Ci y clima e inance: landscape, ba ie s and bes p ac ices” (2022).
Addi ional ypes o inancing oppo uni ies om he p i a e sec o a e desc ibed in his epo .
Deb inancing ins umen s include hose ansac ions in which in es o s lend money wi h he p omise ha
he p incipal oge he wi h in e es will be e u ned on he ma u i y o he bonds.
• G een in es men loans: loans used o inance o e- inance eligible G een P ojec s, which mus
align wi h he 4 co e componen s o he G een Loan P inciples (use o p oceeds, p ocess o p ojec
e alua ion and selec ion, managemen o p oceeds, epo ing) and should p o ide clea
en i onmen al bene i s, assessed and quan i ied, measu ed and epo ed o de e g eenwashing.
• Municipal bonds: deb secu i ies issued by a s a e, municipali y, o go e ning bodies usually o aise
capi al o i s in as uc u e p ojec s. Bonds a e p ima y issued by he municipali ies hemsel es and
can hen be aded in seconda y ma ke s. They a e associa ed wi h low isk and o en ax
exemp ed, and he e o e can be especially a ac i e o in es o s.
• Pooling municipal deb : a speci ically au ho ized bank pu chases municipal bonds issued by local
go e nmen s, pools and hen issues hem in he ma ke .
• Mini bonds: municipal bonds wi h a lowe uni p ice, ma ke ed di ec ly o indi iduals wi hou an
unde w i e se ing as b oke -deale . The Municipali y assigns a i m o p ocess he sale
ansac ion, main ain he eco ds and execu e ma u i y paymen s. Mini bonds connec he axpaye s
o he public p ojec s, hus engaging ci izens, inc easing ci izens’ access o municipal bonds,
inc easing he pe cei ed equi y o ax-exemp inancing, and inc easing social capi al while unding
capi al p ojec s. Howe e , he ole o mini bonds is o en limi ed in scale as hey a e limi ed numbe
o local in es o s and due o he high ma ke ing cos s.
The e a e also Ins i u ional in es o s, such as insu ance companies, comme cial banks, pension unds,
mu ual unds, hedge unds and so e eign weal h unds, who buy, sell and manage s ocks, bonds, and o he
in es men secu i ies on behal o i s clien s, cus ome s, membe s, o sha eholde s. The ocus is on long

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e m and high- isk in es men s, hey can inance p ojec s ha mee hei inancial c i e ia (Risk- e u n- a io).
The municipali y has access o la ge capi al and he e o e needs o bundle i s p ojec s o inancing.
Rela i ely high ansac ion cos s.
Equi y inancing include ansac ions in which in es o s buy a po ion o equi y in he lis ed public company
o a non-lis ed en i y in he o m o sha es. The company does no ha e epaymen obliga ion bu is obliged
o sha e p o i s. Equi y inancing is usually used o inance high isk p ojec s ha a e usually no inanced by
deb ins umen s.
• P i a e equi y: in es men in a company o an en i y no publicly lis ed o aded wi h he in en o
ake o al con ol o he company a e he buyou , wi h he aim o s eamline ope a ions, inc ease
e enues and sell i a a p o i . Usually, mul iple in es o s’ asse s a e pooled and gene a e la ge
capi als o in es men s. Wi h he success ul mains eaming o ESG in es ing, p i a e equi y und
manage s a e compelled o p oduce new inno a i e p oduc s o mee he inc easing demand o
p i a e equi y in he ESG space. P i a e equi y i ms use bo h equi y and deb in hei in es men .
P i a e equi y can play an impo an ole in PPP in as uc u e enewal p ojec s.
• Ven u e capi al unds en ep eneu s, s a -ups and young businesses wi h high g ow h po en ial
who lack access o deb ins umen s, by pooling esou ces om a ew in es o s who a e o e ed
subs an ial po ions o he company on limi ed pa ne ships basis agains hei in es men . They
usually p o ide unding o inno a i e, high isk, niche p ojec s, and can be a ool o spu inno a ion.
• G een equi y: p ocess o in es ing equi y capi al in p ojec s ensu ing en i onmen al sus ainabili y.
By p o iding bo h inancial and en i onmen al e u ns, i may be appealing o a wide a ge
audience. In es o s wi h a g ea e inancial isk appe i e may ind i appealing i he en i onmen al
impac is signi ican , measu able and p e-de e mined.
O he inno a i e ins umen s:
• Ca bon inance: inancial ins umen s and mechanisms such as ca bon c edi s, ca bon o se s, and
ca bon axes, ha suppo p ojec s aimed a educing g eenhouse gas emissions and aba ing o
a oiding emissions o ca bon. I is a way o ob ain unding o low-ca bon p ojec s o inno a i e,
high- isk, and niche ini ia i es ha o he wise may no ha e access o adi ional inancing.
Measu ing, Repo ing, and Ve i ica ion (MRV) is an essen ial elemen o p o ide anspa ency and
accoun abili y, ensu ing ha he emissions educ ions claimed a e eal, measu able, and addi ional.
Howe e , he high le el o echnicali ies and he challenges a ound capaci y o implemen an
e ec i e go e nance s uc u e can ac as a ba ie o accessing ca bon inance.
• Ene gy Pe o mance Con ac ing (EPC): an Ene gy Sa ing Company (ESCo) implemen s an ene gy
e iciency o a enewable ene gy p ojec and he ene gy sa ings o he ene gy p oduced unds he
ini ial in es men . The ESCo is eimbu sed acco ding o i s demons a ed deli e y o ene gy sa ings.
When acili ies lack capi al, skills, manpowe o echnology in o ma ion, EPC is he p e e ed op ion
o in as uc u e in es men s.
• Fee based inancing: a p i a e en i y unde akes he p ojec , including sou cing o inancing, on
behal o he municipali y o a mu ually ag eed ee. This can also be a endo inance, whe e he
p i a e en i y p o ides inancing o p i a e end use s o in es ing in hei p oduc s.
• Ene gy E iciency Obliga ion Scheme (EEOs): he p i a e en i y achie es cos sa ings by educing
ene gy consump ion, which a e used o inance he in es men . En i ies a e equi ed o mee
quan i a i e ene gy sa ing a ge by in es ing in eligible end-use ene gy-e iciency measu es. A
moni o ing mechanism is se up o adminis e , e i y and epo s he sa ings.
• On-bill inancing: municipali ies bo ow di ec ly om u ili y companies and make epaymen ia
ene gy bills. I is easy o se up and implemen ed o small-medium in es men s, sa ing also on
adminis a i e cos s, bu es ima ed sa ings should be able o epay he loan.
• G een mo gage: loan wi h lowe in e es a es o in es in ene gy-e icien ce i ied buildings and
e u bishmen . Bo owe s bene i om lowe epaymen ins almen s, lowe ene gy bills, highe
p ope y alue, and a educed ca bon oo p in . I can be an impo an ool o p omo e e o i ing o
p i a e households and business es ablishmen s.
• C owd unding: model based on lending o ewa d in which in es o s suppo speci ic p ojec s by
eely pledging. Public en i ies can eely decide on he e u n on in es men s and bene i om
communi y pa icipa ion, bu hey owe esponsibili y o many small in es o s and assumes he isk
hey do no s ick a ound o he ull unding phase.
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• Public-p i a e pa ne ships (PPPs): long- e m ag eemen s be ween a public au ho i y and one o
mo e p i a e en i ies o implemen p ojec s agains paymen s by he con ac ing au ho i y o use s.
They a e used o imp o e e iciency and e ec i eness o local public se ice deli e y.
Regilience Funding Oppo uni ies eposi o y
Speci ically on unding, he eposi o y summa ises in o ma ion on Eu opean and na ional oppo uni ies, wi h
he aim o help he iden i ica ion o po en ial unding sou ces.
Fo each ype o unding oppo uni y, i p o ides in o ma ion on he geog aphical a eas hey a e applicable
o, he ypes o ins umen s g an ed, on he en i ies ha could exploi hem, he sec o s and he ypical
budge size.
NAP Global Ne wo k In en o y o inno a i e inancial ins umen s o clima e change adap a ion
The in en o y is in ended o in o m go e nmen s, p ojec de elope s, and inancie s abou a ange o
inancial ins umen s ha ha e been used, o po en ially could be used, o inance he implemen a ion o
clima e change adap a ion measu es, enabling access o inancial esou ces om inancial ins i u ions,
p i a e in es o s, ins i u ional in es o s (such as pension unds), impac in es o s, ounda ions, and o he
philan h opis s, and may be blended wi h adi ional sou ces o inancing.
I p o ides a desc ip ion o di e en kinds o ins umen s a di e en s ages o de elopmen , om mo e
ma u e ones ha a e al eady widely es ablished, o eme ging and pilo ins umen s, also iden i ying he
sec o s in which hey could po en ially be implemen and illus a ing examples o how hey ha e been used.
Financial Ins umen s Lib a y - Ci ies Clima e Finance Leade ship Alliance
The lib a y p esen s di e en inancial ins umen s a ailable o u ban clima e p ojec s, allowing o selec
hose ele an o adap a ion clima e objec i e only o o mi iga ion and adap a ion.
G20/OECD Repo on app oaches o inancing and in es ing in clima e- esilien in as uc u e
The epo iden i ies app oaches ha can be aken o ad ance inancing o clima e- esilien in as uc u e,
ecognizing ha enhancing clima e esilience is c i ical o achie e sus ainable de elopmen . Speci ically, on
enhancing access o inance, a se o po en ial inancing ins umen s ha could be employed o clima e
adap a ion a e lis ed, as well as case s udies and examples.
Figu e 36 Some examples o adap a ion and esilience inancing s ack. Sou ce G20/OECD
Fu he mo e, he ollowing ecommenda ions a e p o ided, keeping in mind ha he speci ici ies o each
local con ex should be accoun ed o :
• Financial ins umen s like g een and sus ainabili y bonds can be le e aged o suppo inancing o
clima e esilien in as uc u e. A he same ime, inno a i e ins umen s like ca as ophe (“ca ”)
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bonds, ou come-based ins umen s, isk gua an ees, and clima e esilien deb clauses can a ac
in es men s.
• Blended inance mechanisms wi h clima e-o ien ed objec i es can be e ec i e in suppo ing he
de elopmen o clima e esilien in as uc u e.
• Public acili ies wi h clea clima e manda es (e.g. in as uc u e- ocussed banks, de elopmen
banks, dedica ed unds) can p o ide pa hways o a ac p i a e sec o inancing.
• Tax incen i es can be used by go e nmen s o encou age g ea e clima e isk educ ion and
adap a ion measu es.
• Allowances om di e en mechanisms like emission ading could secu e unding owa ds clima e
esilience.
Co enan o Mayo s Financing Oppo uni ies and Inno a i e Financing Schemes
The Financing Oppo uni ies ool p o ides in o ma ion on se e al unding p og ammes and al e na i e
inancing ins umen s, oge he wi h inspi ing examples.
The lea le on Inno a i e Financing Schemes desc ibes schemes used by local au ho i ies o inance
adap a ion p ojec s and suppo ci izens and companies, p o iding also case s udies and ecommenda ions.
Module 9: Ma ch ypes o adap a ion op ions wi h inancial en i ies/ins umen s
Financial Ins umen s case s udies - Ci ies Clima e Finance Leade ship Alliance
Financial Ins umen s case s udies - Ci ies Clima e Finance Leade ship Alliance
The eposi o y o case s udies p o ides examples o success ul inancial ins umen s implemen a ions in
u ban clima e p ojec s.
Funded by he Eu opean Union. Views and opinions exp essed a e howe e hose o he
au ho (s) only and do no necessa ily e lec hose o he Eu opean Union o CINEA.
Nei he he Eu opean Union no he g an ing au ho i y can be held esponsible o hem.
Con iden ial
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 inance 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.