ABSTRACT
This chapter provides an overview of funding and financing disaster risk reduction (DRR) including climate change adaptation (CCA). It outlines five key challenges related to funding and financing DRR and CCA that are inhibiting effective implementation or integration. The first challenge is inequitable distribution of international finance for DRR. The second challenge is misalignment between institutional arrangements for DRR and CCA, and the budgetary systems in place to allocate, categorise and track resources at the national level. The third challenge relates to capacity constraints; some of the countries that are most vulnerable to disaster risks, including climate change, have the least capacity to access, use, report and acquit funding. The fourth challenge relates to inappropriate modalities. The fifth and final challenge discussed in this chapter is the requirement for climate finance to be 'new and additional'. This requirement has perversely discouraged effective integration in some cases. Finally, the chapter explores opportunities for integration and makes a number of recommendations.
