Table of Contents 1 63

Financing Climate Change Adaptation in Transboundary Basins

Contents 5
Acknowledgments 7
Executive Summary 9
Abbreviations 13
Chapter 1 Water, Climate Change, and Reslience 17
1.1 Challenges and Opportunities in Transboundary River Basins 18
1.2 Role of Transboundary RBOs 20
Notes 24
Chapter 2 Accessing Finance for Transboundary Adaptation and Climate Resilience Initiatives 25
2.1 Global Cooperation and Climate Finance 25
2.2 Available Finance and Investment for Adaptation and Resilience Building 28
2.3 Climate Finance and Funds Arising from the UN Climate Convention 29
2.4 Private Sector Financing 36
2.5 Concessional Loan Financing 38
2.6 Climate Bonds and Other Bond Options 38
2.7 Interaction and Cooperation between Public and Private Finance 39
2.8 Bundled, Blended, Multidonor, and Other Financial Sources 40
Notes 42
Chapter 3 Preparing “Bankable” Projects in the Transboundary Context 43
3.1 Stage 1: Identifying Potentially Bankable Projects 44
3.2 Stage 2: Project Preparation 45
3.3 Using the Project Cycle as Guide 46
3.4 Managing Risk 47
3.5 Additional Tools and Resources that Strengthen Bankability 49
3.6 Recommendations for Developing Bankable Projects 51
Notes 52
Chapter 4 Conclusions 53
Appendix A: Overview of Funding Sources 55
Glossary 59
Bibliography 61
Boxes 22
Box 1.1. Case Study: Mekong Climate Change Adaptation Strategy and Action Plan for the Lower Mekong Basin 22
Box 2.1. Case Study: Fostering Multi-Country Cooperation over Conjunctive Surface and Groundwater Management in the Bug and Neman Transboundary River Basins and the Underlying Aquifer Systems 32
Box 2.2. Case Study: Drina River Basin Management Project 33
Box 2.3. Case Study: Integration of Climate Change Mitigation and Adaptation Measures in the Concerted Management of the W Transboundary Parc: Adapt-W Project 34
Box 2.4. Case Study: Lake Victoria Basin Commission Climate Change Strategy and Action 35
Box 2.5. GCF Accreditation Case Study: The OSS and Consultation Mechanism of the North Sahara Aquifer System (SASS) 37
Box 2.6. Climate Bonds for Adaptation in the Water Sector 38
Box 2.7. Case Study: Climate Resilience Investment Project for the Niger River Basin 41
Box 3.1. Case Study: Climate Change and Security in the Dniester Basin 50
Figures 19
Figure 1.1. Building Resilience to Climate Change in Transboundary Waters 19
Figure 2.1. Global Climate Finance Architecture 26
Figure 2.2. Average Annual Public Investments in Adaptation, 2015–16 28
Figure 2.3. Green Bond Commitments, by Sector 39
Figure 3.1. Levers for Adequate Risk Mitigation of Green Finance Projects 50
Tables 18
Table 1.1. Observed Climate Change Impacts 18
Table 1.2. Roles of RBOS and Regional Institutions 22
Table 1.3. RBO Challenges and Opportunities in Raising Climate Financing 23
Table 2.1. Green Climate Fund Strategic Impact Areas 35
Table 2.2. Water-Themed Bonds, by Region 39
Table 3.1. Elements of the Project Cycle 47
Table A.1. Multilateral and Regional Climate and Climate Related Funds 55

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