Supporting financing of local adaptation actions with combination of public funding and private financing

Expected Outcome: In support to the implementation of the EU Adaptation Strategy, the EU Mission on Adaptation to Climate change, and in particular having regard to the upcoming European Climate Adaptation Plan, project results should contribute to all of the following expected outcomes: Local climate adaptation actors, the financing sector, the public grant sector, and climate adaptation financing experience are brought to work together on making local adaptation actions financeable by combining public grant funding and private financing via bank loans and on overcoming the practical barriers on combining these and finding solutions, and specifically through demonstrating this with intermediated EIB adaptation lending. Local innovative adaptation actions (including nature-based solutions) have been implemented thanks to their financing by the combination of private financing via bank loans and public grant funding. National Promotional Banks (NPBs)/other banks are mobilised to actively finance local adaptation actions. Scope: Rationale Financing of local adaptation actions, especially with other means than public grant funding, is currently still not taking place sufficiently. Adaptation actions are generally not generating sufficient revenues to become bankable, although they produce financial and economic benefits through avoiding or reducing losses or diversifying risk profiles. Local adaptation actions are typically smaller in size, resulting in high transaction costs…