Financing urban adaptation to climate change

This document presents innovative ways for cities to overcome the challenge of financing climate change adaptation measures. The 11 city case studies presented in this publication, and the lessons they provide, aim to inspire other cities and smaller municipalities to reproduce these measures.

There are a variety of financing options, ranging from governmental sources, banks and private investors, including both grants and loans, to mainstreaming measures into the existing budgets of other sectors. Taking a comprehensive perspective of integrated and long-term urban development, and considering the municipality as a whole, can result in lower overall costs and many additional benefits.

Demonstrating these multiple benefits beyond the primary adaptation benefits increases the chances of obtaining funding. Some 'seed money' from a municipal government or other funding bodies can leverage adaptation measures by mobilising much higher contributions from other public or private stakeholders. 

Finally, one needs to consider that the successful implementation of measures needs more than financial resources. It also requires sufficient awareness and support by decision-makers in the public and private sectors, citizens and other stakeholders.