Multilateral adaptation finance for systemic resilience: addressing transboundary climate risk

The authors used SEI’s Aid Atlas platform to analyze adaptation projects funded by three major multilateral climate funds: the Green Climate Fund (GCF) and the Adaptation Fund (AF) under the UN Climate Convention, and the Climate Investment Funds (CIFs) under the World Bank. The authors examined the extent to which these funds support projects addressing climate risks in more than one country, identifying regional and multi-country adaptation projects approved between 2010 and 2020.

Transboundary climate risks differ in their type and complexity. In terms of type, risks can manifest through shared resources and ecosystems, trade links, the movement of people across borders, financial flows and investments, and shared infrastructure. But multilateral adaptation finance continues to treat climate risk largely as a local phenomenon, focusing on enabling adaptation at local scales. The authors found that most funding is directed to countries on an individual basis for specific national or local projects.