Tracking the money for climate adaptation and disaster risk reduction: Issue paper and webinar

The United Nations Office for Disaster Risk Reduction (UNDRR) and the International Institute for Environment and Development (IIED) have jointly released a comprehensive issue paper titled "Tracking the Money for Climate Adaptation and Disaster Risk Reduction." This ground-breaking report provides an overview of budget tagging and tracking of public expenditures on climate change adaptation and disaster resilience, shedding light on international and country-level trends.

The escalating costs of disasters and of climate change impacts have become urgent global concerns. The world faces a staggering rise in extreme weather events, with their destructive consequences amplified by climate change, resulting in millions of dollars in damages annually. Moreover, additional threats such as pandemics, geophysical hazards, and cyber risks further contribute to this mounting financial burden.

While disaster risk reduction (DRR) and climate change adaptation (CCA) significantly overlap and share objectives, they are usually addressed separately. The issue paper highlights the current state of DRR and CCA budget tagging and tracking and sets the stage for a framework for coordinated budget tagging and public expenditure tracking. 

Nine recommendations were identified based on the countries reviewed:

• Ensure political commitment for DRR and CCA budget tagging
• Strengthen the foundations for DRR and CCA budget tagging in legislative and policy frameworks
• Establish clear institutional and accountability frameworks for vertical and horizontal coordination
• Gain broad political and public support 
• Provide capacity development support and avoid overburdening through a phased approach
• Develop common methodologies and technical guidance for DRR and CCA budget tagging
• Explore options for considering negative expenditures in DRR and CCA budget tagging
• Contribute to a better understanding of the DRR and CCA financing gap
• Capitalise on existing or emerging CCA budget tagging and DRR budget tagging initiatives.

To introduce and discuss the findings of the report, a webinar was organised by IIED and UNDRR on 7 March 2023. The event, "Preparing for Crisis: Investing in Climate Adaptation and Disaster Resilience," delved into the importance of enhancing the coherence between disaster risk reduction and climate adaptation expenditure. The webinar addressed the pressing need to bridge the funding gap for preventative and protective measures, which are paramount in mitigating the devastating impacts of climate-related hazards. 

The lively discussion explored crucial questions, including budgeting principles for crisis readiness, barriers and opportunities in enhancing coherence between disaster prevention and climate adaptation expenditure, insights gained from tracking public expenditures on climate and disaster resilience, and the roles of governments, civil society, funders, and NGOs in addressing these challenges.

The release of the issue paper and the engaging webinar marks an ongoing effort to effectively track and mobilise public finances, governments and stakeholders to take transformative action to protect lives, livelihoods, and the planet from the escalating threats of climate change and disasters.