Institutional Features of International Financing for Climate Change Adaptation Programs

Abstract

The article is devoted to analyzing the main institutional mechanisms of the process of financing the programs for the least developed countries’ adaptation to negative climate change, implemented within the UN Framework Convention on Climate Change (UNFCCC). The paper presents the results of the analysis of basic institutions designed to support the financing processes for sustainable development and adaptation to negative climate changes developed at the international level. The analysis covers two stages of creating and developing a system of financial institutions for international support: the Kyoto Protocol and the Paris Agreement. The reasons behind the need for further transformation of institutional mechanisms for financing adaptation programs are identified. As a result of the study, it is concluded that the key obstacles to the successful implementation of financial adaptation mechanisms are their weak institutional basis and the presence of conflicts in international documents on climate regulation and sustainable development. Based on the institutional analysis, it is shown that the institutions that form the core of international financing mechanisms are characterized by internal and external contradictions and have low implementability as well as low attractiveness for investors. It is concluded that limited access to financial capital is one of the key reasons for the slow resolution of the problem of combating environmental pollution and negative climate change as well as achieving the corresponding goal of sustainable development.

Keywords

• financial mechanisms
• adaptation programs
• climate change
• institutions
• un framework convention on climate change
• adaptation fund