Abstract for: A Preliminary Qualitative Model for the Availability of Climate Adaptation Finance in Developing Countries

The large investments required to adapt to climate change in developing countries ask for the involvement of the private sector. For the private sector to participate in infrastructural projects, there needs to be clarity about, amongst others, how and when returns on investments are made and who carries the risks. This may vary by types of infrastructural measure and country’s institutional setting. The project Water2Invest under the European Climate-KIC (Knowledge Innovation Communities) programme develops an internet-based tool to support these types of decisions by showing both the effectiveness of supply- increasing or demand-reducing measures under various scenarios and by providing insight in financing possibilities in different institutional settings. To support the latter, this paper introduces a qualitative model of factors influencing the availability of finance for climate adaptation, as a first step in understanding financial feasibility of infrastructural measures in developing countries.