Funding Adaptation (original) (raw)
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Ecology and Society, 2019
Faced with increasing climate extremes and climate change impacts, local governments in California are eager to advance their adaptation measures and build local resilience. However, as previous studies and day-today interactions with local leaders make clear, identifying ways to resource adaptation is one of the most significant barriers to progress. This paper draws on selected findings from a study that aimed to better describe the nature of the adaptation finance challenges local governments face so as to find ways to overcome them. Building on initial findings from an online survey and nine stakeholder workshops to deepen the understanding of the nature of funding and financing challenges for local governments, we use a methodological innovation in archetype analysis, grounded theory, to develop a suite of 15 archetypal adaptation finance challenges, i.e., repeatedly found patterns of interrelated causal factors, traits, and outcomes ranging from establishing a matter of concern worthy of attention (and funding) to acquiring, using, and managing adaptation finance. These archetypes are found across different types and sizes of local governments facing different climate change threats. The resulting deeper understanding of local adaptation funding challenges represents an important contribution to the literature and opens up new avenues for intervention beyond the prevailing focus on creating new funding vehicles. We offer archetypespecific recommendations to overcome or reduce these critical finance challenges in local climate change adaptation.
Green infrastructure, stormwater, and the financialization of municipal environmental governance
Journal of Environmental Policy and Planning, 2021
Municipalities large and small are grappling with how to address enduring water quality challenges stemming from the impermeability of much of the built environment and how to address shifting precipitation patterns due to climate change. Finding ways to fund and finance the redesign, retrofit, and adaptation of the built environment, however, presents a major obstacle in an environment of municipal fiscal austerity. In this paper, we examine how municipalities are adopting different fee structures and financial tools to pay for stormwater abatement through green and gray infrastructure and improve their capacity to deal with the impacts of climate change. Drawing on a survey of 233 municipalities and interviews with municipal leaders, we show that transitioning towards green infrastructure in municipal stormwater and climate change planning is a broad goal among most respondents, but stormwater fee systems are typically not sufficient for meeting regulatory mandates as well as the operation and maintenance costs needed to replace or repair urban water infrastructure. This shortfall has led many municipalities to use a host of other financial tools, such as credit and mitigation banking and social impact and green bonds. We suggest this shift has important implications for achieving sustainability and ensuring just transitions.
ALTERNATIVES FOR FINANCING OF MUNICIPAL INVESTMENTS - GREEN BONDS.
Review of Economic and Business Studies, 2019
The perspective of global climate change emerges as a significant political, economic, financial and social issue. Scientific researches show that the accumulated carbon dioxide (СО2), released by the industry and agriculture, together with the contribution of man-made greenhouse gases leads to a rise in the temperature of the earth's surface. Traditional sources of financing capital expenditure, such as own revenues and bank financing have proved to be extremely insufficient. At the same time, not only traditional municipal needs, such as costs for street, road, bridge, school construction etc., but also the need of investments related to climate change have been on the rise. The purpose of this article is to examine and analyze alternatives for financing climate changerelated municipal investments. The subject of the research is green bonds and the so-called Subnational Pooled Financing Mechanisms, which have already gained popularity in Western Europe but are not yet well known in Eastern Europe. The positive aspects and opportunities that the green bond market reveals as well as the barriers to this type of financing are assessed and an analysis of the practice of bond financing in Europe is made.
Municipal bonds as a means of accelerating local infrastructure investment
Proceedings of the Institution of Civil Engineers - Management, Procurement and Law
Even today, the 2007 financial crisis imposes negative impacts on the ability of local authorities to raise funds for capital investment, particularly for infrastructure. A fundamental need thus exists for municipalities and regional authorities worldwide to broaden their financial channels and explore flexible financial options. In the USA, municipal bonds represent the backbone of local public finance. Nearly three-quarters of core infrastructures in the USA are financed by municipal bonds, with about $400 billion in issuances every year. However, the municipal bond market is not a rose without thorns. This paper examines different successful and unsuccessful experiences of local authority bond implementations for infrastructure investment. The limitations and advantages of more widespread use of bond issuance as a financial tool for infrastructure investments in the USA are examined. Next, the paper discusses how the problem of risk hinders investment, particularly in infrastructure. Thereafter, the paper enquires whether the example of collective solutions can become the financial cornerstone for infrastructure investment in a discussion of other European approaches, in particular the Swedish case under the mantle of the Nordic Local Government Funding Agencies. After describing effective strategies for local authorities to apply bond tools for infrastructure investments, policy recommendations are discussed. Cite this article Medda FR and Cocconcelli L Municipal bonds as a means of accelerating local infrastructure investment.
International Journal of Urban Sustainable Development, 2019
There is growing recognition of the importance of funding and financing arrangements to enable climate change adaptation in cities. However, there has been little critical analysis into the underwriting and governance mechanisms necessary support broader scaled application. Through surveying recent literature, this article offers conceptual clarity for understanding emerging adaptation finance mechanisms that intersect with urban governance, planning, and management functions. The article assesses two key conceptual domains: (i) the distinction between adaptation funding and financing and (ii) the synergies, conflicts, and tradeoffs associated with mobilizing adaptation investments in the private sector. The article argues that a clearer delineation of these two domains will clarify the objectives, mechanisms, and larger governance implications of investment in urban adaptation. This article provides a roadmap for future scholarly inquiries that may advance the conceptual and analytical discipline necessary to evaluate the feasibility and desirability of investments from often-conflicting perspectives, interests, and actors.
Climate and Environmental Financing at Regional Level: Amplifying and Seizing the Opportunities
2021
The establishment of national climate policy targets has forced the local government to set ambitious climate goals supporting the national government to achieve its proposed target. Besides low awareness of climate change and environmental risk impacts, the biggest challenge faced by the local governments to exert climate actions lies in the financing of the programs. This paper aims to analyze the current local government budget on climate and environmental activities and identify available potential financing sources to finance local government climate and environmental initiatives. We found that the local budget allocation for environmental spending increased from 1% in 2016 to 3% in 2020, yet it is still relatively low and insufficient for achieving the climate target. With a limited budget, local governments must find additional potential financing sources for financing their climate actions. Through case study analysis, insights from several regions that have gained harness of potential from various climate and environmental financing initiatives to overcome environmental issues in their areas and reach climate and environmental goals were attained. To address local budget shortages problem for climate and environmental activities, several strategies for the local government are proposed: (1) optimizing and improving the quality of spending from intergovernmental fiscal transfer; (2) adopting Climate Budget Tagging (CBT); (3) increasing local-own source revenue from natural resource and environmental based activities; (4) valuing regencies and/or cities with high ecological value with more fiscal support through TAPE and TAKE schemes; (5) optimizing the role of SOEs and private sectors through CSR and PPP; (6) optimizing multilateral financing; and (7) utilizing other financings from the central government such as through environmental fund management agency (BPDLH), disaster pooling fund, ICCTF, and SDGs Indonesia One.
2014
In a future menaced by global climate change, to what extent can and should local communities use development financing tools—especially impact and linkage fee programs—to help defray the public and social costs of natural disasters? Should land use authorities require new real estate projects to internalize some of the potential costs that severe weather events may impose on their communities over time? Such programs might, for example, impose disaster impact fees on new development to fortify infrastructure and to improve emergency management systems or even to fund a reserve account to defray anticipated disaster recovery costs. Beyond that, should new development help finance any of the costs of retrofitting existing communities and new affordable housing projects to face natural disasters and the costs of recovering and rebuilding in those neighborhoods when disaster strikes? Can disaster impact and linkage fees help address problems of uninsured, underinsured, and uninsurable risks? To establish a framework for understanding the public financing challenge, Part I of this paper presents the problem in the context of evidence that climate change may cause more frequent and more severe tornadoes. Part II then develops a legal analysis equally applicable to other natural disasters that are even more commonly associated with climate change, such as extreme heat waves, hurricanes, coastal storm surges, forest fires, and flooding. The author concludes that disaster impact and linkage fee programs could play a small but meaningful role in tornado alley and beyond, but only if they can avoid or survive heightened judicial scrutiny under the U.S. Supreme Court land use cases and the rational nexus standard of state land use law. The current state of the law, especially following Koontz v. St. Johns River Water Management District, 133 S. Ct. 2586 (2013), creates a quandary for any land use authority that may consider resorting to development funding devices to help adapt the built environment to climate change. The author presented a first draft of this paper at the 13th Kratovil Conference on Real Estate Law and Practice: Adaptation of the Built Environment to Achieve Resilience to Climate Change, which took place in September, 2013 at the John Marshall Law School. He gratefully acknowledges the comments, suggestions, and encouragement provided by the other participants in that conference.
Financing Infrastructure Investments for Local Communities
Rome, IAI, April 2021, 12 p. (Documenti IAI ; 21|07), 2021
The second Infrastructure Working Group workshop under the Italian G20 Presidency was hosted on 4 February 2021 by the Istituto Affari Internazionali (IAI). As the world gradually recovers from the pandemic crisis, most governments are designing strategies to revive long-term growth. A key factor in their success will be the capacity to restart and reorient infrastructure investments. In this context, investments in local infrastructures are particularly important because social needs, work habits and production patterns have been greatly affected by the COVID-19 pandemic, whose impact has been most severe on urban areas, the informal sector and marginalised groups – especially in developing countries. Investments in local infrastructures will therefore be crucial in addressing the need to sustain recovery while tackling long-standing problems posed by climate change and social exclusion.
MOBILIZING RESOURCES FOR PUBLIC SERVICES: Financing Urban Governments
Journal of Urban Affairs, 1992
This article examines potential sources of revenue needed to finance urban services. in formulations for resolving the US urban crisis, answers are unclear and several policy guidelines are suggested. First, political candidates must assess reasonably the cost of public services and avoid blanket assurances of no new or increased taxes. Second, urban local governments must have access to the fiscal resources of the full urban area for which they have been assigned responsibility for providing public services. n i r d , urban governments must coordinate and cooperate: Fiscal mercantilism is not productive public policy. Fourth, urban local governments must give greater priority to infrastructure maintenance and development in their financial plans. Fifth, urban local governments must improve property tax structure and administration with appropriate assistance from state governments. Finally, urban local governments must make better use of charge financing and must expand use of broad-based sales and income taxes in cooperation with their states. The authors conclude that urban local governments need to look for resources themselves; prospects for major intergovernment assistance, especially federal, are dim.