Breaking the Cycle: Unlocking Climate Finance for Fragile States

Yue Cao and Tilly Alcayna
Posted on: 6/12/2023 - Updated on: 6/12/2023

Posted by

CAKE Team

Published

Abstract

Many fragile and conflict-affected situations (FCS) are highly vulnerable to climate change - yet the more fragile a country is, the less climate finance it has historically received.

The challenges to accessing and utilizing climate adaptation finance in FCS have been well documented. These can be mapped onto a life-cycle framework, from the strategies driving climate funders’ low risk appetite and tolerance in working in FCS, to the stringent requirements for funding access, project approval and partnerships that limit planning and development of the program, the inflexible operational protocols that hinder adaptive implementation and delivery, and the data and travel restrictions that make it difficult to monitor project progress and measure outcomes.

Whilst our understanding of the difficulties in delivering climate finance in fragile and conflict-affected situations has increased, the question remains: what can be done to overcome them? This report showcases innovative solutions that climate funders could seek to adopt to improve their reach and impact in FCS.

This report showcases innovative solutions that climate funders could seek to adopt to improve their reach and impact in FCS. Four case studies are profiled:

  • A The UN Peacebuilding Fund
  • Peace bonds by Interpeace
  • Crisis modifiers
  • COVID-19 Vaccines Global Access (COVAX)

Each provides practical solutions to overcome the diverse challenges in the life-cycle of climate adaptation programmes in FCS. Several common key learning points can be found in the featured case studies.

Citation

Alcayna, T. and Cao, Y. (2022). Breaking the cycle: practical solutions to unlock climate finance for fragile states. Washington, D.C.: Mercy Corps.

Affiliated Organizations

Flood Resilience Alliance

Affiliated Organizations

Since 1979,we have helped people grappling with the toughest hardships survive — and then thrive. That’s the heart of our approach: we help communities turn crisis into opportunity.

Who We Help: Idealistic youth. Courageous mothers. Determined entrepreneurs. Hardscrabble farmers. Survivors of disaster or war. They live in tiny remote villages and in the slums of the world's biggest cities. We're there for them, listening to their needs, helping any way we can.

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