1. CLIMATE-RESILIENT
FINANCE AND INVESTMENT
Michael Mullan (Michael.mullan@oecd.org)

2. 2
Investment flows will influence resilience to climate
impacts…

3. … with large potential benefits from investing in
adaptation
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Source: Global Commission on Adaptation (2019), Adapt Now

4. Climate-resilient Finance and Investment : framework
Principle Description
1 Process of risk
management
Relevant climate-related risks have been
identified and managed, in a way that is
proportionate to the type of investment and
vulnerability to climate risks. This process
should aim to achieve robustness against
uncertainty
2 Do No Significant
Harm (incl. mitigation)
The investment does not undermine the
resilience of people or ecosystems, for
example by shifting risks to downstream users
3
Consistency with
adaptation plans and
strategies
The investment should be compatible with
relevant strategies for adaptation or resilience
(if these strategies exist)
Physical risk
management
DNSH (incl.
mitigation)
Consistency with
adaptation plans
Alignment
Physical risk
management
DNSH (incl.
mitigation)
Consistency with
adaptation plans
Positive
alignment
Positive
contribution to
resilience
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Source: ENV/EPOC/WPCID(2021)21 : draft Framing Paper on Climate-resilient Finance and Investment

5. 5
Current work programme and next steps
Country study : Scaling-up the use of NBS in
Hungary
• Providing practical guidance to overcome barriers
to the use of NBS by municipalities in Hungary
• Next step: International workshop – 24 May
Framing paper: Climate-resilient Finance and Investment
• Collaboration with the UK Centre for Greening Finance and Investment
• Starting the process of defining adaptation-aligned finance
• Next step: release of working paper (Summer 2022)

6. Alignment assessment and tracking:
• The development of principles for adaptation-aligned finance (including application to
taxonomies)
• Quantitative work and case studies to measure trends in adaptation-aligned finance in key
sectors (intended as joint work with the Research Collaborative on Tracking Finance for
Climate Action)
Enabling Policies and Measures:
• Guidance on strengthening the enabling environment for adaptation finance (incl. links with
NAPs)
• Developing strategies for financing the transition of communities and industries that will
face challenges due to the physical impacts of climate change
Proposed future areas for work
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7. • What are the main challenges and opportunities that you
see for scaling-up and aligning finance for adaptation?
• Which sectors would you prioritise for quantitative
analyses of adaptation finance?
• What are your priorities for work on adaptation finance in
the coming year?
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Adaptation Finance – Discussion Questions

8. THANK YOU!
Michael Mullan
(Michael.Mullan@oecd.org)
And
Nicola Ranger
(Nicola.ranger@smithschool.ox.ac.uk)
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