Within a few decades, tens of billions of dollars, and possibly more, will be needed for climate change adaptation in developing countries. In recent international climate negotiations, US $100 billion per year by 2020 was pledged by developed countries for mitigation and adaptation.

Even if this pledge is realized, it is not clear that it will generate sufficient funds to address the adaptation needs of developing countries. A majority of what has been identified as climate change adaptation needs could be considered as funding for basic development. In addition, a large share of current development assistance is spent on climate-sensitive projects.

With the potential for funding of climate change adaptation to fall short of what is needed and for development funding to continue funding many climate-sensitive activities, coordination of the two funding streams may enable more effective support for both sustainable development and climate change adaptation. Preliminary steps to facilitate such coordination are part of the Cancun Agreements and initiatives by other organizations.

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