Does Climate Finance Support Institutional Adaptive Capacity in Caribbean Small Island and Developing States? An Analysis of the Green Climate Fund Readiness Grants

Abstract

Adaptation is crucial for addressing current and future climate change challenges in Small Island Developing States (SIDS), and climate finance instruments, such as the Green Climate Fund (GCF) can play a key role in increasing their adaptive capacity and supporting the integration of adaptation into policy and programmes. Few studies have analysed the linkages between climate finance, adaptation mainstreaming, and institutional adaptive capacity; however, assessments of the impacts of climate finance on adaptation and adaptive capacity, particularly at the institutional level, are still limited. This research assesses how climate finance may promote institutional change through the mainstreaming of adaptation policies at the national level, and may contribute to more institutional adaptive capacity. Through reviewing the documentation of approved Green Climate Fund Readiness Preparatory Support Grants, and through semi-structured interviews focusing on three Caribbean SIDS (Antigua and Barbuda, Belize, and Haiti), this paper shows that the grants had a positive impact on several processes, though sometimes limited by the strength and role of the institutions in place. These results demonstrate that access to climate finance can create a window of opportunity for countries to accelerate institutional change and adaptation integration. However, further studies are needed to examine the complementary influence of the different climate finance flows (multilateral or bilateral), and their interplay with national institutional mechanisms.