COP26 Resilience Hub Synthesis Report - Key messages and future directions
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COP26
Resilience Hub
Synthesis Report
Key messages and future directions
1
ACKNOWLEDGEMENTS
UNPRECEDENTED PROGRAMME PARTNERS Arts, Culture and Heritage
Climate Heritage Network · Coalition for
COLLABORATION Finance and Investment Climate Resilient Investment (CCRI) · British
InsuResilience Global Partnership · Willis Council · PRAXIS · Arts and Humanities
The Resilience Hub is the home of the Research Council · UKRI
Towers Watson (WTW) · International Institute
UNFCCC’s Race to Resilience that for Environment and Development (IIED)
is driving action by non-state actors, Health and Wellbeing
showcasing the partner initiatives. Nature: Water Atlantic Council · Extreme Heat Resilience
Anglian Water Services · Mott MacDonald Alliance · Mott MacDonald
The Resilience Hub Steering
Water Pavilion partners working closely
Committee includes the COP26 with Resilience Hub, including: Stockholm CROSS CUTTING
Presidency, FCDO, UNFCCC and International Water Institute (SIWI) · Alliance CHAMPION ROLE
the High Level Champions team. It for Global Water Adaptation (AGWA) ·
is managed by the Adrienne Arsht- Carbon Disclosure Project (CDP) · The World Getting Knowledge into Use
Conservation Union (IUCN) · Global Water
Rockefeller Foundation Resilience Partnership (GWP)
Resilience Knowledge Coalition: Global
Center at the Atlantic Council, the Resilience Partnership (GRP) · Climate and
Food and Agriculture Development Knowledge Network (CDKN) ·
Global Resilience Partnership and The International Centre for Climate Change and
Resilience Shift. Just Rural Transition (JRT) (Meridian Institute) · Development (ICCCAD)
Avina · International Institute for Environment
The programme was led by Hubs from and Development (IIED) · Climate Change, Climate Justice and Inequality
around the globe – South Asia, Latin Agriculture and Food Security – CGIAR (CCAFS)
Centre for Climate Justice · Glasgow Caledonian
America, Africa, South East and East Energy Access and Resilience University
Asia, Pacific, and of course from the Efficiency for Access Coalition · ICF · Nature Based Solutions (NbS)
heart of Glasgow in the COP26 Blue International Energy Agency (IEA)
International Centre for Climate Change and
Zone and at Glasgow Caledonian Development (ICCCAD)
Cities, Regions, Built Environment
University. The COP26 programme
was organised with the help of over 30 Arup · Build Change · Sniffer
REGIONAL HUB LEADS
private and public organisations. Resilient Infrastructure South Asia: International Centre for Climate
Infrastructure Operators Adaptation Forum Change and Development (ICCCAD)
It is largely financed by private sector
(IOAF) · Strengthening Infrastructure Risk South East and East Asia: Asian Development
and philanthropy support. Thank you Management in the Atlantic Area (SIRMA) · Bank (ADB)
to our sponsors who include: FCDO, Climate Sense · Coalition for Climate Resilient Pacific: Asian Development Bank (ADB) ·
JPMorgan Chase, UNFCCC, Deloitte, Investment (CCRI) · Coalition for Disaster Deutsche Gesellschaft für Internationale
Google, IBM, PWC, Arup, AXA XL, Resilient Infrastructure (CDRI) Zusammenarbeit (GIZ)
Jupiter Intelligence, Mott MacDonald, Early Warning Early Action & Disaster Risk Africa: World Resources Institute (WRI)
SPARC, Willis Towers Watson, WSP, Reduction
Stockholm Hub on Environment, Global Network of Civil Society Organisations
PILLAR LEADS
Climate and Security, Anglian Water, for Disaster Reduction (GNDR) · Risk-informed
Coastal Pillar
Early Action Partnership (REAP) · United
and the Climate Justice Resilience Van Oord · Ocean Risk and Resilience Action
Nations Office for Disaster Risk Reduction
Fund. (UNDRR) · Willis Towers Watson (WTW) Alliance (ORRAA)
With special thanks to the Locally Led Adaptation and Just Transition Rural Pillar
Government of Peru for their Bangladesh Rural Advancement Committee Feed the Future Innovation Lab for Markets,
collaboration and support. (BRAC) · International Centre for Climate Risk and Resilience (MRR) at University of
Change and Development (ICCCAD) · California, Davis
International Institute for Environment and
Development (IIED) · World Resources Institute Urban Pillar
(WRI) International Institute for Environmental
Development (IIED) · Slum/Shack Dwellers
International (SDI)
ABOUT THIS REPORT
This report was made possible through funding from Swedish International Development Cooperation Agency (Sida).
The report was authored by Sam Bickersteth and Corina Angheloiu with input from from Shuchi Vora, Simone Verkaart,
Anastasia Brainich, Vasundhara Dash, Ameil Harikishun, Lisa McNamara, Michelle du Toit, Istiakh Ahmed, Helen Civil,
Shehnaaz Moosa, Prof. Saleemul Huq, David Howlett, and Nathanial Matthews.
Cover image: Waduk Cirata, the Cirata reservoir, in West Java, Indonesia, one of many man-made reservoirs that aim to
support sustainable fish farming. Photo Credit: Pramod Kanakath / Climate Visuals Countdown
Suggested citation
Resilience Hub (2021). COP26 Resilience Hub Synthesis Report: Key Messages and Future Directions. Glasgow, UK.
EXECUTIVE SUMMARY
The first Resilience Hub, the home of UNFCCC’s Race to Resilience at COP26,
sought to advance action on adaptation and resilience at COP26 and beyond, and
to help provide a strong collective voice on resilience for all those globally who are
working to build a more climate resilient world.
This report synthesises the main messages from the Resilience Hub and aims to
help set the direction for future action towards COP27 and beyond. The report
first provides an overview of the key adaptation and resilience decisions and
announcements that took place during COP26; it then presents the key messages
resulting from the events of the Resilience Hub and offers concluding remarks on
next steps towards COP27 and beyond.
Five main messages emerged:
1. Locally Led Adaptation is essential for transformative and equitable
adaptation and is ripe for scaling, subject to finance access.
2. There is an urgent need to increase the overall availability of quality finance
for adaptation and resilience, as well as to diversify financial instruments
through emphasising grant-based rather than loan-based models.
3. Transformative adaptation and resilience require bridging the gaps
between knowledge and implementation through knowledge brokering
and advancing measurement and learning.
4. Nature based Solutions are key to transforming risk into resilience through
integrated urban, coastal and rural climate actions.
5. Pragmatic and equitable adaptation and resilience action requires women,
youth, disabled, displaced, and Indigenous peoples to be at the heart of
design, decision-making, and implementation.
Besides summarising the key overarching messages, the synthesis report presents
findings and insights from the three pillars of Race to Resilience (urban, coastal, and
rural), as well as from the ten themes explored in the Resilience Hub: Finance and
Investment; Water; Food and Agriculture; Energy Access and Resilience; Cities,
Regions, and Built Environment; Resilient Infrastructure; Early Warning Early
Action and Disaster Risk Reduction; Locally Led Adaptation and Just Transition;
Arts, Culture, and Heritage; and Health and Wellbeing.
3
The Ice Stupa Himalaya project: the purpose of these human-
made glaciers is to help store water in ice form as they do
not melt fast as an actual glacier. The water is used by local
farmers for irrigation purposes throughout the year.
Photo credit: Ankit Tanwar / Climate Visuals Countdown
PHOTO HERE?
4
CONTENTS
Executive Summary�������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 6
Adaptation and Resilience at COP26 ������������������������������������������������������������������������������������������������������������������������� 7
The Resilience Hub at COP26���������������������������������������������������������������������������������������������������������������������������������������������� 8
Key Messages���������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 9
Key Resilience Pillars: Rural, Urban, Coastal ���������������������������������������������������������������������������������������������������11
Thematic summaries
Finance and Investment����������������������������������������������������������������������������������������������������������������������������������������������������12
Nature: Water�����������������������������������������������������������������������������������������������������������������������������������������������������������������������������14
Nature: Food and Agriculture��������������������������������������������������������������������������������������������������������������������������������������16
Energy Access and Resilience �������������������������������������������������������������������������������������������������������������������������������18
Cities, Regions, and Built Environment���������������������������������������������������������������������������������������������������������������20
Resilient Infrastructure������������������������������������������������������������������������������������������������������������������������������������������������������22
Early Warning Early Action and Disaster Risk Reduction�����������������������������������������������������������������24
Locally Led Adaptation and Just Transition���������������������������������������������������������������������������������������������������26
Arts, Culture, and Heritage��������������������������������������������������������������������������������������������������������������������������������������������28
Health and Wellbeing����������������������������������������������������������������������������������������������������������������������������������������������������������30
Reflections and next steps towards COP27 and beyond��������������������������������������������������������������������32
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Photo credits: Karwai Tang / UK Government
Photo credits: Karwai
Tang / UK Government
6
ADAPTATION AND RESILIENCE AT COP26
Adaptation and resilience were a visible and based solutions, as well as through multi-stakeholder
prominent theme in a way not seen before in the collaborations such as the Ocean Risk and Resilience
climate COPs. Prior to COP26, adaptation only Action Alliance (ORRAA), which aims to drive US$500
featured on the formal agenda under the technical million of investment into coastal and marine nature
reporting work of the Adaptation Committee. based solutions, positively impacting the resilience of
However, in the context of the ongoing COVID-19 at least 250 million people in coastal areas around the
pandemic and of the increasing and uneven effects world.
of climate change, COP26 witnessed growing global
consensus of the need for adaptation and resilience According to OECD analysis, by 2025, the
to be addressed on par with the mitigation agenda. mobilisation of adaptation finance is on track to raise
Adaptation and resilience featured highly in both US$40bn. However, the provision for developing
the formal negotiations, as well as in the campaign countries is insufficient in view of worsening climate
demands of non-state actors, with adaptation finance impacts. The UNEP 2021 Adaptation Gap Report (also
widely seen as a key priority. The Glasgow decision launched during COP26) evidences that adaptation
known as the Glasgow Climate Pact gives prominence finance needs are five to ten times greater than current
to adaptation with sections II and III respectively finance flows, and that the gap has been widening
on adaptation and adaptation finance, ahead of since the previous 2020 AGR due to an increase in
mitigation in the text. Relevant decisions endorsed by adaptation costs and needs, while funding flows have
all Parties include: remained stable or decreased. Indebtedness, which
has only increased during the COVID-19 pandemic,
• Setting up a two year Glasgow-Sharm el-Sheikh work
presents an additional challenge, which has seen
programme on a global goal for adaptation;
states and negotiation blocks as well as non-state
• Setting a target of doubling climate finance (based on actors expressing the need for grant-based rather
a 2019 baseline) by 2025 including a balance between
adaptation and mitigation and a call for innovative financial than loan-based adaptation finance.
instruments;
During COP26, Loss and Damage, the term which
• Instructing the COP Subsidiary Body for Scientific and refers to the impacts to climate change that we
Technological Advice to prepare informal summary reports
on both land and climate change adaptation, and on ways
cannot adapt to, has emerged as a key focus of the
to integrate and strengthen ocean based actions. negotiations. Alongside mitigation and adaptation, it
had been recognised since the 2015 Paris Agreement
The doubling of finance for adaptation alongside as the ‘third pillar’ of climate policy and international
substantial commitments by several donors is cooperation, however to date no standalone funding
significant. The Adaptation Fund has seen a record mechanism has been agreed. Responding to the
increase in pledges, from US$129m at COP24 to impacts of climate change requires joined-up and
US$356m at COP26, while the Least Developed scaled-up action to enhance resilience across a
Countries Fund (which supports climate adaptation spectrum of transformative adaptation and loss and
action) received a record US$413m in new pledges. damage support for the communities and regions
The commitment of 450 banks, asset managers and facing impacts that cannot be adapted to. Securing Loss
others (with total asset value of US$130tn) to the and Damage finance is key to tackling the permanent
Glasgow Finance Alliance to Net Zero (GFANZ) is an loss of lives and livelihoods, and the ensuing migration
indication that financial institutions have grasped and displacement.
that climate resilience is about risk, security, and
competitiveness. In an event at the Resilience Hub, the Beyond formal negotiations and decisions, there was
Champions Group on Adaptation Finance, an informal a strong focus on recognising the different roles and
group of ten countries championing finance solutions capabilities that are required to adapt and deliver
for the Least Developed Countries, together with solutions locally. Non-state actors led this agenda
representatives from the UN Secretary-General's through the Race to Resilience and the Marrakech
office, took stock of progress on adaptation finance Partnership on Global Climate Action. Adaptation and
and committed to further action heading into 2022. resilience are key climate justice issues and at COP26
In addition, companies and investors are committing this link was strengthened through the increasing
to becoming “nature positive”, through initiatives such recognition that women, youth, disabled, displaced,
as the Natural Capital Investment Alliance, which and Indigenous peoples must be at the heart of
pledged to invest US$10bn of private capital in nature decision-making and implementation processes.
7
“The Race to Resilience allowed us to put mitigation “The Resilience Hub has been a real success and
at the level of urgency of adaptation and resilience we hope that it goes from strength to strength to
– and not the other way around.” draw more attention and direct more resources.”
— Gonzalo Muñoz, High-Level Climate Action — Nigel Topping, High Level Champion for Climate
Champion of Chile for UN COP26, during the Action at COP26, during a High-level Plenary session
Resilience Hub Reflective Event at the end of week 2 at the end of week 2
“I want to acknowledge what an important milestone it
was to be part of this journey with you [the Champions]
and how it has given agency and voice to communities
that felt they were the poster children of other people’s
agendas.”
— Sheela Patel, Founder Director of the Society for the
Promotion of Area Resource Centres (SPARC) India, during the
Resilience Hub Reflective Event at the end of week 2
8
THE RESILIENCE HUB AT COP26
As the home of the Race to Resilience at COP26, the The Resilience Hub provided a unique convening,
Resilience Hub played a key part in advancing dialogue learning, and connecting platform. With six geographic
and action on adaptation and resilience through hubs (five virtual, Africa, South Asia, South East and
demonstrating what non-state and state actors East Asia, Pacific, Latin America, as well as an in person
are doing to build a resilient future where people, one in Glasgow), 154 events from 80 event partners
communities, businesses, and cities thrive in the face featuring 176 participating organisations, and 21
of the impacts of climate change. sponsors, the first ever COP Resilience Hub brought
together a community of state and non-state actors.
While previous COPs have seen an increase in focus
on resilience and adaptation, it has been spread The following key messages and thematic summaries
across different initiatives, spaces and events inside were developed through a qualitative analysis of 50
and outside the COP. Adaptation and resilience was Resilience Hub event summaries produced by event
“everywhere but nowhere”, lacking a focal point. The leads, and through reflective conversations between
Resilience Hub was designed to meet this challenge. the report authors, the Resilience Hub team, as well as
pillar, theme, and regional leads.
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KEY MESSAGES
2. There is an urgent need 3. Transformative
to increase the overall adaptation and resilience
1. Locally Led Adaptation is
availability of quality finance require bridging the gaps
essential for transformative
for adaptation and resilience, between knowledge and
and equitable adaptation
as well as to diversify implementation through
and is ripe for scaling
financial instruments through knowledge brokering and
subject to finance access.
emphasising grant-based rather advancing measurement
than loan-based models. and learning.
For communities on the frontlines In line with the Principles for Capacity building initiatives such
of climate change, resilience and Locally Led Adaptation, the needs as knowledge brokering and
adaptation are critical present of end users in local communities communities of practice are key to
needs that must be urgently must be at the heart of designing strengthening knowledge-policy-
addressed. Locally Led Adaptation financial solutions and policies. practice-investment linkages. The
(LLA) is an effective model to ensure As the speed and accessibility importance of action research and
that these communities have a of financial instruments needs transdisciplinarity has become
voice in decisions that directly to rapidly increase, the private increasingly recognised, as they
affect their lives and livelihoods. sector, financial institutions, can surface and integrate different
It has been successfully piloted in insurers, and asset managers knowledge systems. Progress is
different contexts and it is ready need to integrate climate risk as being made on the longstanding
for scaling. Scaling LLA requires the a core part of risk management. challenge of measuring resilience
alignment of finance commitments Initiatives such as the Glasgow through the Race to Resilience
to the eight Principles for Locally Finance Alliance to Net Zero Metrics Framework and the
Led Adaptation, a widely endorsed (GFANZ) are demonstrating that Sustainable Asset Valuation
codification of good practice this shift is materialising. Taking (SAVi). Digital tools, quantitative
to which over 70 governments, a holistic approach to finance approaches, codes, and standards
leading global institutions, and requires connecting development, can inform better decision-
local and international NGOs humanitarian, and climate finance making, however, their success
have signed up. LLA requires: to respond more effectively. relies on trust and communication.
the integration of generational Collaboration between academia, Integrating these successfully and
knowledge systems (local, civil society, multilaterals and equitably requires building new
traditional, and Indigenous) with implementing programmes, as well partnerships, mediating power
technical and scientific insights as the private sector is required dynamics, and strengthening
to improve adaptation planning, to learn from failure and scale South-South and South-North
investment, and learning. successful financial approaches. linkages.
105. Pragmatic and equitable
4. Nature based Solutions
action requires women,
provide a key opportunity
youth, disabled, displaced,
to transform risk into
and Indigenous peoples to
resilience through integrated
be at the heart of design,
urban, coastal, and rural
decision-making, and
climate actions.
implementation processes.
Increased investment in high- Youth movements have been key
quality Nature based Solutions in shaping the narrative of climate
(NbS) needs to be implemented emergency and justice, through
in partnership with and full calls such as the Youth4Pacific
respect of Indigenous peoples Declaration on Climate Change,
and local communities’ rights and and now action must follow up
knowledge. NbS should aim to ahead of COP27 and beyond.
protect tangible and intangible Cutting across the different
heritage, avoid only focusing on Resilience Hub activities was a
one type of ecosystem, support growing consensus of the need
or enhance biodiversity, and for pragmatic and equitable action
start from a measured baseline. to scale Locally Led Adaptation
Integrating NbS in agri-food and Nature based Solutions, to
systems needs to ensure that scale and diversify adaptation
farmers are paid, reimbursed, and resilience finance, to advance
and insured to transition towards knowledge brokering, to progress
Opposite page: Seaweed farming in
resilient and regenerative the development and application Zanzibar, Tanzania. Zanzibar is the world's
practices. In urban areas, NbS of the Race to Resilience Metrics third largest exporter of seaweed and
can improve health and wellbeing Framework, and to use arts and 90% of the farmers are women.
while providing vital resilience culture to inspire change at all Photo credit: Natalija Gormalova /
Climate Visuals Countdown
buffers. Coastal and marine NbS, levels. Taking action through
This page: Rewilding initiative by Colombia
such as mangrove replanting or putting women, youth, disabled, Reserva Ambiental to recover the paramo of
coral reef repair, can strengthen displaced, and Indigenous peoples Guerrero, a special Andean ecosystem located
3.400 m above sea level and one of the most
the food security and socio- at the heart of decision-making is important water sources for the capital Bogota.
economic resilience of coastal key for COP27 not to succumb to Photo credit: Ivan Camilo Ospina /
communities worldwide. more “blah, blah, blah”. Climate Visuals Countdown
11Rural, urban, and coastal
adaptation solutions
Top left: Clare Mukankusi, CIAT bean breeder in
Kawanda, Uganda, leads breeding efforts to improve
drought resilience and disease tolerance.
Photo credit: Georgina Smith / CIAT
Middle right: Nature based Solutions such as these urban
wetlands in Colombo, Sri Lanka provide multiple benefits.
Photo credit: Martin Seemungal / IWMI
Bottom left: Artificial Reef installed at Mon Choisy Beach, Mauritius
to combat soil erosion and enhance marine ecosystems.
Photo credit: Reuben Pillay / Climate Visuals Countdown
12KEY RESILIENCE PILLARS:
RURAL, URBAN, COASTAL
The overall focus of the Resilience Hub is on supporting communities, cities, and businesses from all countries
to build their resilience to climate shocks and stresses. Three key pillars that were aligned with the Race to
Resilience Campaign shaped the programming of the Resilience Hub activities:
Rural Pillar Urban Pillar Coastal Pillar
Risk makes and keeps people poor. Cities are leading the way on A healthy ocean and resilient coastal
Effective climate risk management adaptation and resilience. Around communities: two sides of the
tools not only protect the current well- the world, cities are putting in place same coin. The ocean is the world’s
being of rural communities struggling ambitious processes and interventions largest carbon sink, has absorbed the
in the face of climate change, but the to cope, adapt, and transform to the vast majority of heat from carbon
implementation of these tools also increasing effects of climate change. emissions and is home to more
underwrite improvements in future For action to scale, the support of than 80% of life on Earth. Lives and
well-being. national governments in accessing livelihoods in coastal communities
finance is key. are dependent on a healthy ocean and
There is no silver bullet when it comes thriving marine ecosystems.
to overcoming the climate risks Tackling the climate-health nexus is
rural communities face. Integrated key to addressing urban inequality Coastal communities are on
approaches that build on thoughtful and climate justice. Vulnerable the frontline of climate change
complementarities blending financial populations, such as the elderly, worldwide. Extreme weather events,
tools along with climate responsive women, informal workers, and those sea level rises, adverse and significant
agronomy and social safety nets, are in informal settlements are the most ecosystem changes, pollution,
essential to building rural resilience. impacted by climate change. Urban overfishing, rising levels of acidity,
Anticipatory action can help avert interventions need to prioritise action increases in the salinity of freshwater
climate losses as interventions on the wider determinants of health. and groundwater, all jeopardise the
and policies that simultaneously health of the Ocean and the people
address a person or community’s The urban poor are the first who depend on it. These systemic
assets, capacities, and risk exposure responders in contexts where local changes put at severe risk the social
(including effects on their culture government services are extremely cohesion of coastal communities
and heritage) have the best chance of limited. Informal settlements are leading to migration and population
creating lasting change for poor and often situated in areas prone to displacement.
climate vulnerable households. flooding, heavy winds, sea-level
rise, fires, and forced relocation. As Driving positive action through
Agriculture rural resilience must be climate migrants move to informal collaborative action, data, and
built from the ground up. Locally led settlements within cities, they innovative finance mechanisms.
research is needed to understand become even more vulnerable. Urban Multi-stakeholder collaborative
the key constraints and inclusive solutions that centre social justice and action can support the resilience of
stakeholder engagement is required anticipatory approaches that enable coastal communities. Innovative data
to ensure just and effective policy. the preparedness of the residents of collection technologies can stimulate
Inclusive engagement from fields to informal settlements are extremely awareness and grow ocean financial
research labs to government offices important, however they need to build literacy, leading to public and private
is key to building the resilience of the on the experiential knowledge of local sector policy change. New investment
agri-food systems around the world. communities. approaches can identify and scale
opportunities that will enable coastal
communities to plot their own
sustainable futures.
13FINANCE AND INVESTMENT
Financing resilience requires taking a systemic approach. Resilience and adaptation require substantial
investment support from public and private sector investors, putting finance at the heart of the climate-resilient
transition and closing the financing gap for adaptation. In line with the Principles for Locally Led Adaptation, the
needs of end users in local communities must be at the heart of designing financial solutions and policies.
Identifying and providing adequate support to plans in place, our cities, regions, and societies require
scale adaptation and resilience solutions requires a adapting to the increasing effects of climate change.
landscape approach to funding. Grants, concessional Insurance plays a key role for both the public and
funding, commercial capital are all needed to private sector in integrating and aligning risk financing
accelerate the development, scaling, and uptake of within wider policy agendas. The InsuResilience Global
solutions. However, these require collaboration within Partnership aims to accelerate a shift from ex-post
the funding landscape – between banks, development financing (humanitarian and disaster reconstruction
finance institutions, asset holders, pension funds, funds arranged after disasters) to prearranged risk
insurers, corporate investors - to ensure the funding is finance (financial tools such as microinsurance that
integrated and supports the innovators, as well as the provide funds reliably and quickly when disasters
context in which they operate. occur) and is seeking to reach 500 million poor and
vulnerable people by 2025. Mainstreaming adaptation
“We need to start financing adaptation solutions in the and resilience into the finance and insurance systems
same way we did 15 years ago for mitigation.” needs to also see the inclusion of climate risk in all
— Jay Koh, Co-founder & Managing Director, credit assessments.
The Lightsmith Group
A holistic learning culture based on solid
There is a need to connect development,
relationships and trust can improve the finance and
humanitarian, and climate finance to respond more
insurance systems. Transdisciplinary collaboration
effectively. Since the pandemic began, climate-
between academia, civil society, multilaterals and
related disasters have severely affected the lives
implementing programmes, as well as the private
of at least 139 million people worldwide. Of the 25
sector is required to learn what works and what
countries most vulnerable to climate change, 14 are
doesn’t. Current challenges include a lack of reliable
also experiencing conflict. Connecting these three
and long-term impact data from climate and disaster
funding streams and corresponding agendas is of
risk finance and insurance (CDRFI) interventions,
particular urgency in the context of fragile states or
while gaps in evidence include a lack of gender based
protracted conflict areas.
perspectives. Building trust and relationships is key
Loss and Damage finance is urgently required for in supporting fruitful collaboration between local
communities and regions facing climate change governments, regulators, and corresponding market
impacts that they cannot adapt to. Permanent players. For example, a value added tax exemption
loss of lives and livelihoods due to climate change is was granted to the microinsurance product launched
already resulting in migration and displacement, and in Fiji under UNCDF’s Pacific Insurance and Climate
has huge economic and social implications especially Adaptation Program. The exemption was granted by
for Indigenous people and local communities. For the Fijian government before the official launch of the
example, some villages have already relocated in Fiji, product, proving that trust can accelerate action.
while the viability of many of the Pacific islands is in
“There’s a big disconnect between the international
question as low-lying atoll islands are facing increasing
climate landscape and the people on the ground who
tides, changes in rainfall, rising sea levels, as well as an
want to receive the money and implement projects.
increase in the salinity of freshwater and groundwater
There is a disconnect between the small-scale ideas
resources.
and the large-scale ideas which the Green Climate
Public financial management must integrate Fund wants to fund. ”
adaptation and resilience instead of focusing — Caroline Fouvet, Climate finance analyst,
exclusively on net zero. Even with ambitious net zero Willis Towers Watson
14Capturing the value of coastal wetlands through Blue
Carbon Resilience Credits in the Bahamas.
Photo credit: Ocean Risk and Resilience Action Alliance (ORRAA)
Developing countries are suffering from a triple crisis women in a parametric microinsurance product, or
of debt, climate change, and nature loss. Tackling the case of the Pacific Island Warriors (PIW), a youth
indebtedness, which has only increased during the group who took part in the design process of the
Covid-19 pandemic, requires grant-based rather than parametric microinsurance product.
loan-based adaptation finance mechanisms. Debt for
climate and nature swaps can provide fiscal space Launches and announcements at COP26
and help address the climate financing gap across • InsuResilience’s Climate and Disaster Risk Finance and
developing countries. Through diminished debt service Insurance (CDRFI) Evidence Roadmap was launched at the
Resilience Hub. The Evidence Roadmap is a community
obligations, swaps can finance nature and climate document which will guide research and evidence activities
policy commitments from Nationally Determined in the CDRFI space in the years to come.
Contributions (NDCs) and National Biodiversity • Launch of the Climate Transition Index (CTI) that aims
Strategy and Action Plans (NBSAPs). This could to include more than one metric (carbon intensity) when
expand investment in renewable energy, marine and assessing transition risk: LifeSight announces it is investing
terrestrial conservation, and land restoration. These nearly US$1bn in new Climate Transition Index Fund on
swaps need to be more large-scale and programmatic, COP26 Finance Day
with swap funds managed through debtor government • The Lightsmith Group announced the launch of their
budgets as with IMF macro programmes or World partnership with Village Capital to accelerate twenty-
four SMEs and startups in Africa, Asia, Latin America and
Bank Development Policy loans. the Caribbean that will each work closely with industry
experts, investors, and ecosystem partners.
“People say the youth are our future, but it was very
difficult to interest development partners and other • The Global Innovation Fund and the Global Resilience
Partnership announced the launch of the Innovating for
funders to secure a serious and dedicated investment
Climate Resilience Fund invests, through grant, equity,
plan to resource the implementation of all of the good and debt instruments, in innovations with the potential to
intentions set out in the Pacific Youth Development scale and support the world’s poorest to build resilience
Framework. Political support wanes, personalities and adaptation.
change, priorities change, but funding was and
Learn more...
continues to be a challenge.”
— Associate Professor Collin Tukuitonga, Associate • Restored reefs: A parametric insurance programme,
Dean - Pacific, Faculty of Medical and Health Sciences, underwritten by AXA Climate, supports recovery of the
University of Auckland. Mesoamerican Reef following hurricane impacts;
• Stronger cities: In Medellin, authorities are working
Deepening financial literacy and empowerment is closely with local and international partners on a Disaster
key to the success of financial instruments such as Risk Management Strategy. The programme includes
microinsurance products. For financial instruments the development of a parametric flood and earthquake
product, as well as an indemnity landslide protection.
to be successful in meeting key needs on the ground,
they need to be co-designed with their intended end • Protected forests: In California, wildfires have ravaged
users. Enabling the participation of youth or women’s forests and communities. Partners have worked with The
Nature Conservancy to quantify the impact that ecological
groups requires building financial literacy as a forestry would have on reducing insurance premiums.
prerequisite. Successful examples from the Fiji include
• The Pacific Insurance and Climate Adaptation Programme
CCSLA (Cane-farmers’ Cooperative Savings and Loans aims to improve the financial preparedness and resilience
Association), which has seen a greater involvement of of Pacific people towards climate change and hazards.
15NATURE: WATER
Water is at the very heart of the climate crisis, as crucial to adaptation as carbon is to mitigation. Our increasingly
variable climate is profoundly altering the water cycle, jeopardising shared water resources and increasing flood
and drought risk. We need to act right now to identify and accelerate collaborative, low carbon solutions to
deliver water resilience – such as wetland restoration, protection of water sources and integrated management
of water, energy and food supplies – if we are to deliver successful adaptation and a truly resilient future.
Historical North-South power relations need to be urban and agricultural uses) as it integrates urban
replaced with equitable South-South and South- landscapes as part of the water basin.
North partnerships where knowledge exchange and
co-creation are given equal priority. Sharing learning Digital tools can play a key role in building water
and knowledge between different geographies resilience. They can help stakeholders better
who share key water related challenges is vital. understand the risks and make better informed
As low-lying landscapes are faced with the urgent decisions about adaptation action and investment.
need to adapt to the sea level rise already locked in, Their success relies on building trust through engaging
enabling learning and knowledge sharing between with local institutions, authorities, and individual
communities, businesses, and institutions based in users, as well as listening to user feedback. All these
these regions is key. For example, the Living Deltas stakeholders need to be able to understand and act
initiative aims to connect delta science and research on data that is relevant to them, which highlights the
through collaboration and learning between Asian importance of communications as well as the need
mega-delta regions such as the Mekong Delta, the Red for clear interfaces. As data sharing becomes more
River Delta, and the Ganges-Brahmaputra-Meghna critical, ensuring trust and data privacy is key.
Delta. Financial risk management is a key approach in
“As the climate emergency accelerates in the Global ensuring water security and supporting communities
North as well as the South, this mutual learning and to recover post-disaster. The climate-water-
partnership becomes even more important. We are insurance nexus needs to be integrated to support
locked into sea level rise, so we need to adapt at pace, better decision making in water management.
at scale, and in partnership.” Insurance products (especially index-based) allow
— Emma Howard Boyd, Chair, Environment Agency,
risk to be transferred and can protect populations
and UN Global Ambassador for Race to Zero and Race against disaster events that endanger water supplies.
to Resilience However, there is a need for more and better quality
data to design robust insurance products in low-
Taking an integrated approach to water can unlock resource settings. While private and public capital
wider community, environmental, and economic is needed to unlock scale for insurance products,
benefits. In taking a systems approach there is a need institutional cooperation across departments is
to address traditional binary choices and/or conflicts required to recognise water, sanitation, and hygiene
(e.g. urban versus agricultural land; conservation as as essential elements in climate change adaptation.
opposed to development) and instead enable a whole
landscape approach. There is a need to link macro-scale Young leaders in water resilience are driving practical
interventions with community-based and community- solutions that can meet the level of the challenge.
generated adaptation strategies. The Youth for Water However, they need more support to build their
and Climate Platform is a financing mechanism that technical capacities, as well as innovative financing
allows young leaders from around the world to gain mechanisms to implement their ideas. This technical
access to financial and technical support to implement and financial gap means youth are often excluded from
water related locally-led adaptation. Such brokering funding opportunities and usually allocated observer
initiatives provide innovative approaches to water roles rather than being able to actively participate in
resilience and they now require adequate financial developing and implementing solutions.
resources to scale. The Integrated Water Resources
Management (IWRM) framework can be instrumental "Pacific Islanders and communities, despite their
in building urban water resilience and managing trade- frontline experience of the climate crisis, are stepping
offs in water management (for example between up to demonstrate that indigenous wisdom and
16traditional knowledge are key to solving this existential ocean conservation and coastal resilience and an initial
crisis. Indigenous people, women, and youth, are committment of US$300,000.
groups who have demonstrated through an enabling • Willis Towers Watson, AXA and Palladium are all founder
environment and the right support - that we are able signatories of the BackBlue Ocean Finance Commitment,
which is UN-backed and is designed to incorporate the
to build resilient communities and peoples." Ocean in finance and insurance decisions.
— Lavetanalagi Seru, Climate Justice Officer, Pacific
Islands Climate Action Network Learn more...
Addressing ocean and coastal resilience is key to the • Mott Macdonald is tackling Bangkok’s flooding issue by
providing a consolidated platform which processes up
food security and socio-economic resilience of more
to 20 billion data points each day to provide improved
than 3 billion people. As a stable climate is impossible forecasts and early warning alarms.
without a healthy ocean, taking action to develop
• The IRWI app, developed by IWMI, provides smallholding
locally-led ocean and coastal resilience solutions is farmers in Egypt with the right ICT tools required for them
key. Initiatives such as the Ocean Risk and Resilience to carry out irrigation in an effective and more resilient
Action Alliance (ORRAA) aim to address ocean way.
risk, adaptation, and resilience through pioneering • The Climate Resilience Demonstrator (CReDo) is a
innovative financial products and projects. connected digital twin which provides insight on how
flooding affects interdependent infrastructure and assets
Launches and announcements at COP26 across energy, water, and telecom networks in the UK.
• A first-of-a-kind meeting on Ocean Action Day was co- • Moody’s ESG digital tool uses science driven analytics to
hosted by the UK COP26 Presidency and the Ocean Risk provide insights for understanding exposure to physical
and Resilience Action Alliance (ORRAA) to convene the climate risks anywhere in the world, at an asset or portfolio
private sector, governments, and civil society to accelerate scale.
the finance essential for building resilience, protecting
• The Youth for Water and Climate Platform supports
nature and tackling climate risk. Major commitments to
initiatives such as Keep Nati Clean (a Benin led project
ORRAA announced included: a CAD$9m commitment
to protect and preserve the Fourigninkèrè River), the
from the Government of Canada; a US$2m commitment
Mother Earth Project (an ecological restoration project
on behalf of the Gordon and Betty Moore Foundation
in Zenú Nuevo Caribia Indigenous Ethnic Community of
to develop an innovative risk assessment tool to help
the municipality of Necoclí, Colombia), or the rural Alaska
insurers combat illegal, unreported, and unregulated (IUU)
Native communities infrastructure adaptation project.
fishing and more than US$500,000 from the UK and Swiss
Re Foundation to support ORRAA’s Ocean Resilience • The Transboundary Water In-Cooperation Network,
Innovation Challenge. TWIN, carries out diverse activities to facilitate
cooperation and collaboration between grassroots
• ORRAA is leading an initiative to help design a blue
organisations, communities, and scientific institutions,
resilience clearing house to grow the project pipeline
in areas such as the conflict prone Jordan river basin, the
for investment and provide a forum for those wishing to
Kunar-Chitral-Kabul River Basin, or the Kali River.
invest in verified marine and coastal natural capital, to find
investment opportunities. It is hoped that this will provide • The Cultural Protection Fund project Melting Snow and
the framework for millions of dollars of investment over Rivers in Flood, managed by the International National
the next decade. The design process is being led by ORRAA Trust Organisation and Cross-Cultural Foundation in
member, Palladium and in collaboration with WWF, Bank Uganda, explores a community-led response to rapid
of America, and Convergence Finance. glacial melt and extreme floods in the Rwenzori and West
Nile region of Uganda.
• AXA, ORRAA’s global lead insurance partner launched a
new, publicly available Coastal Risk Index, which for the • The Vietnam Academy for Water Resources is working
first time, showcases the importance of mangroves and closely with the national government to tackle the overlap
coral reefs in reducing flood risk. between water resilience and food security through the
use of the IWRM framework.
• Deutsche Bank announced the launch of the Deutsche
Bank Ocean Resilience Philanthropy Fund dedicated to
Experts from the Kenyan
Water Resource Management
Authority test river water
samples to support farmers
along the watershed to better
manage their land and prevent
soil erosion. The work is
part of the CGIAR Research
Program on Water, Land
and Ecosystems (WLE).
Photo credit: Georgina
Smith / CIAT
17NATURE: FOOD AND AGRICULTURE
Although food systems are the primary driver of biodiversity loss and a significant contributor to climate change,
working with nature and people to enhance the role of ecosystems can deliver both adaptation and mitigation
outcomes, while also tackling biodiversity loss, inequality, and poverty.
Progressing issues related to the climate resilience Solutions (NbS), incorporating Indigenous knowledge,
of agri-food systems cannot happen without placing and facilitating peer to peer learning, for example
farmers at the centre of this conversation. Public between food producers on the ground. High-quality
policies and funding in the food and agriculture NbS can deliver significant benefits for climate,
systems need to ensure that farmers are supported biodiversity, and people. Although they are not a silver
in transitioning to more sustainable, nature positive, bullet for solving the climate crisis, they are a powerful
and nutritious systems. While there is a need to scale part of integrated climate solutions. However, poorly
up investment in research and innovation, farmers designed and implemented, NbS can be detrimental.
need to be supported to ensure that innovation is Increased investment in high-quality NbS should be
appropriately adopted on the ground. implemented in partnership and with full respect of
Indigenous peoples and local communities’ rights and
“For innovation to be a success we need to be inclusive, knowledge, should avoid only focusing on one type of
we need to engage smallholder farmers, co-design ecosystem, and support or enhance biodiversity.
programmes and projects, and make sure that we are
inclusive and participatory. Smallholder farmers are “Farmers are first and foremost food producers and
some of the most innovative business people you will they are really proud of being food producers, whether
find”. that’s to feed their families, their communities, and
— Susan Chomba, Director, Vital Landscapes, World beyond. Their new challenge is that they are also
Resources Institute Africa and Race to Resilience natural capital asset managers.”
Ambassador
— Jake Fiennes, Manager-Conservation, Holkham
Estate
Proactive participation of Indigenous peoples and
local communities in decision making is essential The private sector’s role in catalysing transformation
in addressing the underlying causes of biodiversity and climate resilience is vital in agri-food systems as
loss. While Indigenous peoples and local communities well as in biodiversity landscapes and communities.
constitute only 5% of the global population, they Deploying climate risk sharing instruments and
manage more than 80% of the global biodiversity. adaptive technologies at scale, as well as supporting
However, only 1% of climate finance is directly reaching those enacting this transition on the ground requires
them due to top-down approaches, poor governance, an enabling environment. This needs to enhance
and lack of recognition of their rights and stewardship. public trust and match climate-adaptive technologies
There is a need to ensure clear and strong rights of to farmer needs. Building a strong business case for
Indigenous peoples and local communities over land climate adaptation in diverse agri-food systems at
and natural resources, and to scale up reliable, flexible, scale remains a key challenge that requires greater
and long-term funding initiatives such as payment investment as well as shifting policy incentives.
for ecosystem services. Such examples include the
Dedicated Grant Mechanism (DGM) under the Forest “Farming has to be one of the riskiest businesses in
Investment Program of the Climate Investment Funds, the world and people who depend on farming for a
which seeks to conserve biodiversity and promote living tend to be risk averse. That’s why shifting policy
carbon stocks while empowering Indigenous peoples incentives to help farmers manage that transition are
and local communities. really critical to making the transition.”
— Ann Tutwiler, Senior Advisor, Just Rural Transition
Nature and people can no longer be viewed in
isolation from one another. We must look to Enhancing the climate resilience of agri-food
integrate nature within all systems, including food systems and biodiversity landscapes remains a
and agriculture, through implementing Nature-based key challenge in Asia and the Pacific due to a lack
18of finance. Agri-food systems in the region are the Learn more...
most vulnerable to climate change. Despite requiring • ADB is supporting Lao PDR through a matching grant
about US$180 billion in adaptation finance per year, scheme to the private sector in partnership with
they received only US$4 billion out of annual average smallholder farmers, which provides up to 50-60% of
global climate finance flows of US$632 billion in 2019 the cost to promote climate-adaptive agriculture and
agribusiness value chains.
and 2020. Small-scale agriculture received only 1.7%
of the total global climate finance. Agri-food systems • In Nepal and Bangladesh, IFC with support from the Pilot
Program for Climate Resilience developed a sustainable
in Asia received total climate finance of only US$39.5 and replicable climate-smart business model of private
billion over the period 2000-2018, and the share of sector engagement with smallholder farmers that
agriculture out of total climate finance declined from promoted resilience and increased productivity. The
45% in 2000 to 24% in 2018. program impacted around 100,000 farmers and supported
five agricultural commodities.
Digital technologies have the potential to boost • This year, a major new Nature based Solutions (NbS)
recovery of agri-food systems as well as to report launched by 15 environment and development
effectively monitor threats to biodiversity and organisations highlights successful NbS across a wide
support efforts to build the climate resilience of range of contexts and identifies common success factors
and recommendations: Nature-based solutions in action:
local communities. Scaling up investments in digital lessons from the frontline.
agriculture (through initiatives such as FAO’s 1000
• In Ethiopa, Farm Africa’s long term partnership with
Digital Villages Initiative and Hand-in-Hand Initiative)
communities, businesses and government in the region to
is critical to enhance agricultural resource efficiency, increase the value of forests, reduce the need to expand
safety and quality, and adaptation to climate change. farmland and implement landscape-wide approaches
The application of new technologies (such as satellite to NbS resulted in a decrease in deforestation by 62%,
imagery, GIS, blockchain technologies, mobile phones, fuelwood consumption by 50%, along with increased
incomes, dietary scores, and water access.
data systems) for effective monitoring of biodiversity
threats (flora and fauna monitoring, wildlife trade, • In Mali, funded by the Darwin Initiative, Tree Aid and
local partner Sahel Eco worked with local communities
poaching) must be complemented with and build to strengthen local forest management, sustainable land
on traditional knowledge. Providing the right tools practice management and develop viable enterprises
compatible with the needs and capacities of local around non-timber forest products. There has been a 270%
communities is equally important to facilitate the easy increase in average household income, a 34% reduction in
adoption of such technologies. people living below the poverty line, as well as an increase
in biodiversity and in tree density and cover.
Launches and announcements at COP26 • China, Jinsha River Valley in Yunnan: Farmers’ Seed
• Sixteen countries have pledged support to the Policy Network’s work setting up community seed banks and
Action Agenda, which sets out steps that governments, working with 14 farming communities to show how
farmers, and others can take through policy reform and working with nature can help people cope better with and
innovation transition to sustainable food systems. recover from crises like COVID-19 and climate change.
• The Global Action Agenda for Innovation in Agriculture, • Across the globe, momentum is building to ensure people
supported by more than 160 governments and are at the center of transforming food and land use
organisations, was launched. It aims to close the innovation systems. This Case Study Library aims to document these
gap in agriculture and food systems. experiences. Read more here: Compendium of Country
Case Studies: Accelerating Transition to Sustainable
• The UK will launch a £65 million just rural transition Agriculture.
support programme to help developing countries move
towards more sustainable methods of agriculture and food • As of 2020, the World Food Programme’s R4 scheme
production. reached nearly 180,000 farming households (55% women),
benefitting approximately 900,000 people in Bangladesh,
• The Glasgow Leaders’ Declaration on Forests and Land Burkina Faso, Ethiopia, Kenya, Madagascar, Malawi,
Use adopted at COP26, which includes a pledge by 133 Mozambique, Senegal, Zambia, and Zimbabwe.
countries (covering 90% of global forest area) to end and
reverse deforestation by 2030 commits US$19.2 billion of • The Just Rural Transition, with support from WBCSD and
public and private finance. Meridian Institute, released an investment partnership
Case Study Library, which showcases how agricultural
• Thirty of the world’s largest financial firms pledged to production can be scaled to meet the demands of a growing
stop funding activities linked to deforestation. As part of global population, all while improving the livelihoods and
Nature for Life Hub nine organisations committed US$5 resilience of farmers.
billion over 10 years to protect nature, climate, and people.
Under the Finance for Biodiversity Pledge, 75 financial
institutions committed to protect biodiversity through
their finance activities and investments.
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