chapter  3
Funding and financing adaptation
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In practice, the words “funding” and “fi nancing” are often used interchangeably. Financing refers to the broader process of combining sources of debt and equity to provide capital for an investment. A “capital stack” is the multi-layered combination of debt and equity existing at any given transactional stage of an investment. Debt can come from bonds, mortgages and a variety of secured and unsecured loans. Equity has conventionally been referenced as the unrestricted contribution of cash into an investment. In light of the increasing complexity of public investment, the concept of equity should arguably be diversifi ed. For instance, in-kind contributions to planning activities, matching funds for grants and collateral efforts that advance a project could all be considered types of equity. Likewise, these may be registered as present, as well as deferred, contributions. A more diverse accounting of the notion of equity is critical for maximizing and leveraging the total public contribution to any given investment.