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Innovative Financing Mechanisms to Leverage Ecosystem Based Adaptation (EbA) Finance for Vulnerable Communities

Author

Listed:
  • Namita Vikas

    (auctusESG LLP)

  • Smitha Hari

    (auctusESG LLP)

Abstract

Climate change accelerates economic loss and results in negative GDP growth. Vulnerable geographies and communities are the most affected by climate change, but they lack the capacity (financial and technical) to withstand and adapt to its effects. In addition to this, the mismanagement of environmental resources for economic development has reduced the natural capacity of the ecosystem to adapt to climate change. In this regard ecosystem-based adaptation (EbA) measures can play a crucial role in building resilience to climate change in vulnerable communities. However, despite its importance, there is a significant shortfall of capital flows to adaptation, and specifically to EbA initiatives. There is a critical need to develop financing strategies which address challenges of traditional means of financing. This paper explores various innovative financing mechanisms and models to leverage adaptation finance and implement EbA measures for vulnerable communities through global case studies. In addition, the study seeks to provide pathways for adaptation finance that can be tailored to the priorities of local communities.

Suggested Citation

  • Namita Vikas & Smitha Hari, 2023. "Innovative Financing Mechanisms to Leverage Ecosystem Based Adaptation (EbA) Finance for Vulnerable Communities," Global Economic Observer, "Nicolae Titulescu" University of Bucharest, Faculty of Economic Sciences;Institute for World Economy of the Romanian Academy, vol. 11(1), pages 116-125, May.
    • Handle: RePEc:ntu:ntugeo:vol11-iss1-116-125
    as

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    References listed on IDEAS

    as
    1. Agrawala, Shardul & Carraro, Maelis, 2010. "Assessing the Role of Microfinance in Fostering Adaptation to Climate Change," Sustainable Development Papers 92709, Fondazione Eni Enrico Mattei (FEEM).
    2. Shardul Agrawala & Maëlis Carraro, 2010. "Assessing the Role of Microfinance in Fostering Adaptation to Climate Change," Working Papers 2010.82, Fondazione Eni Enrico Mattei.
    3. Shardul Agrawala & Maëlis Carraro, 2010. "Assessing the Role of Microfinance in Fostering Adaptation to Climate Change," OECD Environment Working Papers 15, OECD Publishing.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    : Climate change; vulnerable communities; ecosystem-based adaptation; EbA; adaptation finance; climate finance;
    All these keywords.

    JEL classification:

    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics

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