Adaptation financing entails a multitude of challenges when it comes to selecting and implementing measures that are to be sustainable. This article depicts general difficulties with respect to adaptation financing. It also describes an approach developed and tested in two coastal states of India to promote community-based climate change adaptation (CCA) linked to disaster risk reduction (DRR) and climate change mitigation (CCM). It summarises lessons learned from the bottom-up perspective as well as details of good practice in the context of climate change.