Distribution of Adaptation Finance in the Global South : A Qualitative Investigation of Current Procedures and Criteria

Global North Parties to the United Nations Framework Convention on Climate Change (UNFCCC) have committed to mobilise financial assistance to support climate action in the Global South. However, the finance currently available to Global South countries for climate adaptation is negligible in comparison to actual needs, and it is estimated that the finance gap will continue to increase as the needs of recipient countries grow faster than the volume of pledged funding. The scarcity of funding available means that not all adaptation needs can be met, and the issue of how existing funding is allocated is therefore crucial.

The international community agrees that the “particularly vulnerable” countries must be prioritised in the allocation of adaptation finance, without actually defining what it means to be particularly vulnerable. Moreover, vulnerability is not evenly distributed within countries. It is therefore necessary that adaptation finance reaches both the most vulnerable countries and the most vulnerable communities and areas within them. Studies assessing the allocation of adaptation finance at both the international and subnational levels indicate that there may be other factors than vulnerability influencing allocation. However, the studies are mostly based on aggregate quantitative flows of adaptation finance. To understand why the finance is distributed the way it is we must also look at what happens inside the decision-making process that determines allocations.

This thesis explores the allocation process for adaptation finance through three case studies of different allocation channels: 1) bilateral adaptation aid from the German Federal Ministry of Economic Cooperation and Development (BMZ), 2) multilateral adaptation finance from the Green Climate Fund, and 3) subnational allocation of adaptation finance in Seychelles.