Coordination and capacity barriers inhibit necessary actors from working together or are resource constraints to address project challenges. They include:
Complexity of project due diligence: High cost of project preparation for large-scale infrastructure projects.
Lack of coordination: Lack of coordination and cohesiveness between climate adaptation policies and investment needs in the sector and between various stakeholders at international, national, and subnational levels.
Lack of financial and technical capacity: Lack of financial and technical capacity to access international funding through bilateral, multilateral public finance and other private financial institutions as the duration of approval and disbursement process does not align with the short-term mandates of local governments.
Lack of municipal/subnational implementation capacity: The lack of reliable and accessible information about climate risks and impacts can create significant risk to projects, combined with limited capacity to process available climate data in infrastructure modeling and translate findings into the necessary resilience measures makes it difficult to adapt proactively.
Monitoring and measurement: There is a lack of high quality, investible projects with appropriate deal size and risk-return ratios to match the needs of the available capital. Many projects need grant capital or technical assistance to generate returns, which are also often low. Additionally, high relevance of context and natural diversity make scale and replication more complex than other sectors.
Multi-stakeholder solutions can create complexity for channeling funding: Climate adaptation criteria are often necessary for public finance involvement in projects can add a burden for lenders and there is often limited climate risk information available.