From funding to financing: perspectives shaping a research agenda for investment in urban climate adaptation

Abstract

There is growing recognition of the importance of funding and financing arrangements to enable climate change adaptation in cities. However, there has been little critical analysis into the underwriting and governance mechanisms necessary support broader scaled application. Through surveying recent literature, this article offers conceptual clarity for understanding emerging adaptation finance mechanisms that intersect with urban governance, planning, and management functions. The article assesses two key conceptual domains: (i) the distinction between adaptation funding and financing and (ii) the synergies, conflicts, and tradeoffs associated with mobilizing adaptation investments in the private sector. The article argues that a clearer delineation of these two domains will clarify the objectives, mechanisms, and larger governance implications of investment in urban adaptation. This article provides a roadmap for future scholarly inquiries that may advance the conceptual and analytical discipline necessary to evaluate the feasibility and desirability of investments from often-conflicting perspectives, interests, and actors.

Urban Nature as an Active Means of Adapting Public Spaces to Climate Conditions: Case Studies from Copenhagen and Selected Polish Cities

“…The research results presented in the paper indicate that the basis for the effectiveness of adaptation activities in public spaces is the inclusion and prioritization of urban nature at every stage of the planning and implementation process. The keys are as follows:  a holistic approach to implemented urban nature, in the context of the relationship: the built environment -the natural environment -the residents and their needs, taking into account different spatial scales and different urban areas, carrying out systemic activities and complementing them with spot actions, emphasis on multifunctionality of solutions, supporting community, diversity and activity in public space [52,53],  consistency of the city's development documents and policies under development, including spatial planning, architectural policy, and urban design; provision of appropriate formal and informal instruments for the preparation, management, and coordination of the entire process of transformation of public spaces, ensuring implementation of the strategy and achievement of the set goals [54],  detailed development of individual stages of implementation of urban nature in public spaces, taking into account the instruments of operational urban planning [55]; inclusion in the process of adapting the city to climate change of the following solutions: legal, organizational, and architectural-urban planning; involvement of public funds for financing individual investments; support for private investments [56],  selection of innovative architectural and urban planning solutions, including infrastructure, based on the inventory of resources, analysis of conditions carried out at different spatial scales, and taking into account the guidelines from the provisions of planning and strategic documents; matching them to the character and specificity of the place, as well as visions and quality goals related to the development of the city, the natural system, and the needs of residents [57],  inform landowners, users, and developers about the benefits of implementing urban nature in adaptive solutions for public spaces, resulting from the introduction of ecosystem services regarding increased security, increased property and land use value, resource savings, and improved quality of life in the city [58],  socialization of planning and implementation processes, ensuring the selection of optimal solutions to meet the needs of residents; providing space for civic initiatives and social activities; cooperation, communication, conducting dialogue and integrated activities of various stakeholders; strengthening the responsibility for urban space and participation of residents, both at the stage of creating strategies and planning, as well as implementation of activities [59],  exchange of experience between cities (conferences, workshops, meetings, joint projects, associations, and committees dealing with urban nature) allowing the dissemination of knowledge about instruments for effective planning and implementation of adaptation activities in which urban nature plays a key role [60].…”

Subnational government climate expenditure and revenue tracking in OECD and EU Countries

“…**Climate-specific refers to activities with an explicit climate adaptation or mitigation focus (e.g., carbon sequestration), whereas climate-related refers to activities with an indirect climate adaptation or mitigation focus (e.g., retrofits to transmission lines). Source: Author's own elaboration based on information from (Trinomics, 2016[20]; Gibbs, 2020 [21]; Comité de Gestión Financiera -Departamento Nacional de Planeación, 2016 [22]; Valentová, Knápek and Novikova, 2019 [23]; Hainaut, Ledez and Cochran, 2019 [24]; Novikova et al, 2019 [25]; Kamenders, Rochas and Novikova, 2019 [26]; INECC, 2019 [27]; van Geloof and de Kruik, 2012 [28]).…”

Rethinking the geographies of finance for urban climate action

“…This includes cities across Sub-Saharan Africa, which have limited public financial resources and face structural barriers to access market finance (Cirolia, 2020). Foreign exchange risks also limit access to capital by many national governments, local businesses, and organisations (Keenan et al, 2019). This means that current research on the geographies of finance for climate action has tended to focus on financial instruments that have indeed been popular in policy discourses and undoubtedly gained traction on global financial markets (as attested by the growth of the green bond market; Jones et al 2020), but yet remain inaccessible to the majority of cities.…”