Finance for adaptation at the level of local government in South Africa: New report with inputs from Kulima

The report assess the priorities, resource needs and current resource flows for adaptation in South Africa, and the nature of current gaps and barriers to access at subnational level. This study takes a mixed method approach, including desktop analysis and literature review, interviews with stakeholders working on finance for climate objectives with or in subnational government, and perspectives gathered in a municipal government webinar, to address two main research questions: What are the priorities, resource needs and current resource flows for adaptation in South Africa, with particular focus on the subnational level? What is the nature of the current gaps and barriers to access, and how can they best be overcome to unlock adaptation finance flows to subnational level?

The report finds that the adaptation finance gap in South Africa is particularly pronounced at subnational level, and risks attainment of national adaptation commitments. Closing this gap requires tapping an array of climate finance sources, both national and international. However access differs between municipalities, reflecting different revenue raising and financial management capacities. Ensuring that vulnerability assessments have been conducted and that adaptation plans exist is important. Multilateral climate funds can support the process by better aligning their requirements with local realities.