Tracking adaptation finance: advancing methods to capture finance flows in the landscape
High-quality adaptation finance tracking identifies gaps and barriers in financing adaptation and resilience solutions globally, drives leaders and stakeholders to invest in adaptation or support increases in finance flows, and supports government agencies in developing policy guidance. Despite the critical importance of adaptation finance tracking, significant data and reporting challenges limit CPI’s ability to capture global adaptation finance flows in the Global Landscape of Climate Finance (the Landscape). Adaptation investment is difficult to track due to challenges associated with context dependency, the uncertain causality of investments made, a lack of impact metrics, and confidentiality and reporting requirements. The Landscape currently does not track any private sector adaptation finance and tracking of public domestic adaptation finance is limited. In this brief, set out potential methods to fill data gaps in adaptation tracking in the Landscape and propose methods to measure progress. The technical approaches propose to identify flows in imperfect datasets are intended as a starting point for future iterations of adaptation finance tracking and can serve to identify information that should be tracked and reported by local governments and companies. Ideally, applying the proposed framework will improve understanding of adaptation finance and feed into larger tracking efforts.