The adaptation finance challenge
There is a significant shortfall between the finance available for adaptation and the amount required – ‘the adaptation finance gap’. These resources aim to support development of the knowledge and skills needed to help to close this gap and successfully finance adaptation projects in Scotland.
Finance for climate adaptation related projects (both when adaptation is a primary and secondary objective) is required. This finance will need to consider climate risks and impacts, as well as adaptation benefits and costs, and must be aligned to the relevant legislation and regulations.
The third UK Climate Change Risk Assessment (CCRA3), and the Climate Change Committee’s Investment for a Well Adapted UK report, have highlighted the high economic costs of climate change, but also the high economic and societal benefits of adaptation, reporting that investing in such action is extremely effective and efficient.
The Adaptation Scotland programme has worked with industry experts to develop a suite of resources to help build a deeper understanding of the opportunities presented from investing in or financing adaptation action, the common barriers to financing adaptation, and case studies of businesses models that could be replicated to increase the speed, quantity, and scale of adaptation finance in Scotland.
Guide to adaptation finance
The Guide to Adaptation Climate Finance was developed in partnership with a ‘Climate Finance Working Group’, made up of industry experts across Scotland. It introduces adaptation finance, identifies current barriers, and aims to support development of the knowledge and skills needed to successfully finance adaptation projects in Scotland. It is relevant for a wide range of sustainability, finance and project development professionals; anyone assessing financing options for climate adaptation related projects. It explores three use cases: public, blended and place-based adaptation finance.
DOWNLOADInsights and opportunities report
This report builds on barriers identified in our Guide to Climate Adaptation Finance, to identify opportunities for stakeholders in Scotland to address those barriers, and unlock finance for scalable, inclusive adaptation. This report is informed by a series of semi-structured interviews with key informants, alongside a review of relevant literature, news stories, and blogs.
The report identifies 12 opportunities for overcoming barriers to financing adaptation and mobilising private finance. These actions cover policy, market development and frameworks, data and information sharing, research, and industry-led action. The report also highlights that much can be learned from the nature finance sector, where there is innovation in market-based approaches to financing action. Opportunities exist to maximise synergies between nature finance and adaptation outcomes, but adaptation responses extend beyond naturebased approaches, so will require their own distinct market development and business models.
DOWNLOADDeveloping adaptation finance business cases
The Developing Adaptation Finance Business Cases resource was commissioned in collaboration with the working group and produced by Paul Watkiss Associates. It examines the opportunities for public, private, blended and third sector finance for three projects that would have traditionally been public grant financed.
- A coastal managed realignment at Inch of Ferryton in the Firth of Forth
- A flood management project in Newcastleton in the Scottish Borders
- A community climate resilience project in Uist in the Outer Hebrides
Adaptation Finance Case Study: Craigleith Retail Park
This case study, produced with Paul Watkiss Associates, explores the financing options support the retrofit of blue-green infrastructure in an urban setting. This project developed a potential business model to finance the work, reducing current and future flood risk (and to an extent, future heat risk) whilst increasing property values, footfall, biodiversity and air quality.
DOWNLOAD
Craigleith retail park in Edinburgh
