Planning to Implementation in the NAP Process: Finance​

Kenya-Zambia Peer Learning Exchange​

1. Esther Tinayo , Lensational trainee, Kenya (2021) Planning to Implementation in the NAP Process: Finance Kenya-Zambia Peer Learning Exchange 19-21 February 2025 Nairobi, Kenya

2. Grace Ntesio , Lensational trainee, Kenya (2021) Financing the NAP Process Financing is needed throughout the NAP process Development phase: primarily government Implementation phase: greater diversity of actors T he finance needed to implement developing countries’ adaptation plans is estimated to be USD 387 billion per year until 2030 (UNEP 2023 Adaptation Gap report ).

3. The NAP Process: A Financing P erspective

4. Potential Sources of Finance Public Private Domestic National and sectoral budgets Sub-national budgets Domestic climate change funds Private enterprises Private financiers International Bilateral donors Multilateral climate funds Non-climate focused multilateral funds Multilateral development banks Various sources meet different adaptation needs. Grants and concessional funds important to meet needs of most vulnerable – GESI considerations Private sector usually requires revenue stream

5. Approaches to Financing the NAP Process Traditional Investments: Grants, concessional loans, project preparation facilities, technical assistance, loans, equity Innovative Financial Instruments for Adaptation: Debt instruments: e.g., Green bonds, Sustainability-linked bonds Financial risk management instruments : e.g., Credit guarantees, Debt-for nature/climate swaps, Pooled investment funds Results-based financing instruments: e.g., Adaptation Benefits Mechanism, Biodiversity credits, Payment for ecosystem services

6. Adaptation Financing Strategy Helps to align financing needs with potential sources of financing. Promotes a planned, coordinated and coherent approach. Guiding principles: Be country driven Identify best and most strategic use of various sources and types of finance Include actions to improved enabling environment Use whole of government approach Be participatory and inclusive – emphasize GESI Set out processes to implement the strategy and measure its success Aligned with other initiatives, such as NDCs and national development plans

7. NAP-Global Network Resources https://napglobalnetwork.org/resources/ https://napglobalnetwork.org/innovative-financing/

8. Thank you! Email: [email protected] Website: www.napglobalnetwork.org @ NAP_Network NAP Global Network