ADAPTATION STRATEGY 10
Effective adaptation implementation will require capital and ongoing funding to support:
- A dedicated staff person(s) and any expenses related to supporting a climate adaptation committee
- Project capital and operations, maintenance and upgrade costs
- Ongoing programs
Note that not all actions need to be implemented immediately. Prioritizing actions will identify what will need to be implemented year over year. An implementation budget should be developed for every year of the action plan and should be updated on an annual basis, identifying opportunities to integrate adaptation considerations into any relevant policy/program review cycles. Implementation plans should specify responsible departments, allocated budget and clear timelines.
Municipalities will need to find innovative ways of funding adaptation initiatives, especially within their own means so that they are not reliant on external sources. Creating a climate-resilient municipality has the potential of generating 2-10 times the benefit for every dollar invested, according to the Global Commission on Adaptation’s Adapt Now – A Global Call for Leadership on Climate Resilience. Municipalities can then leverage these benefits to create a sustainable internal funding source for additional climate adaptation and mitigation projects.
Communities can access a wide range of external and internal funding sources for staffing and technical tools (Please note that this is not an exhaustive list):
Resilience Dividend Valuation Model
Developed by the RAND Corporation and the Rockefeller Foundation, the Resilience Dividend is defined as the difference between in net benefits resulting from a resilience project versus a “business as usual” scenario where no work is done. The Resilience Dividend Valuation Model (RDVM) is based off the theory of “inclusive wealth”, which represents the net value of a system derived from contributions of capital assets to a society’s well-being. See the figure below for an example for a soil restoration project.
The model is a comprehensive approach to analyzing and classifying quantitative benefits from resilience projects. Benefits were split into direct benefits, co-benefits, and allocation mechanism. From case studies examined through the development of the RDVM, co-benefits included increased agricultural income, improved community vitality and stability, increased trust in community leadership, and less time dedicated to disaster recovery resulting in more time contributing to the economy. Allocation mechanism refers to the changes allocation of capital stocks, and goods and services flow resulting in changes to information, institution, constraints, or behavior.
- Climate Action Reserve Fund / Carbon Reserve Fund (if available)
- Climate Action Revenue Incentive Program (BC Only)
- General reserves
- Improvement district taxation/tolls/levies for services
- Interfund borrowing
- Federation of Canadian Municipalities (FCM)
- Municipal Climate Innovation Program (MCIP)
- Green Municipal Fund (GMF)
- Municipal Asset Management Program (MAMP)
- Gas Tax Fund
- Disaster Mitigation and Adaption Fund (DMAF)
- Climate Action Fund
- Environmental Damages Fund
- Building Regional Adaptation Capacity and Expertise (BRACE) program
- Federal-Provincial Investing in Canada Bilateral Agreements
- Carbon Tax Reserves (All provinces and territories except for BC and Quebec)
- Low Carbon Economy Leadership Fund
- List of funding for adaptation projects
- Carbon Tax Reserves (BC and Quebec)
- Funding sources by province:
- BC – BC Climate Action Toolkit
- Alberta – Municipal Climate Change Action Centre
- Saskatchewan – Environmental Sustainability and Climate Change
- Manitoba – Made-In-Manitoba Climate and Green Plan
- Ontario – A Made-in-Ontario Environment Plan
- Quebec – Green Fund (French)
- New Brunswick – Environmental Trust Fund
- Nova Scotia – Clean Foundation
- Prince Edward Island – Environmental Stewardship Funding Programs
- Newfoundland – Climate Change Challenge Fund
- Yukon – Funding for businesses and support (Yukon),
- Nunavut/Northwest Territories – Adaptation funding programs (Federal)
Though a wide range of funding is available to communities for initial funding for acquiring tools, dedicating staff, and implementing capital projects, communities need to recognize that the majority of funding sources are one-time payments, and they must find additional sources for ongoing monitoring, subsequent adaptation projects, and contingency/emergency funds.
A Climate Action Reserve Fund is an innovative way of retaining funds to sustainably facilitate climate mitigation and adaptation projects. The process retains a portion of avoided annual energy costs saved from energy efficiency projects to a revolving fund for future climate change mitigation and adaptation programs.
The District of Summerland Green Revolving Fund Policy allocates funding each year from the operating budget for climate action initiatives, and has a policy regarding these funds that specifies funds are to be prioritized according to comprehensive criteria to ensure the projects result in real emissions reductions and encourage other environmental, social, and economic co-benefits. Unspent funds are transferred to a Climate Action Reserve account. $50,000 from this fund was dedicated as seed funding for the creation of the Summerland Green Revolving Fund (GRF).
The purpose of the GRF is to further progress towards carbon neutrality by:
- Creating a mechanism to fund perpetual GHG emissions reductions by re-dedicating cost savings to funding for future projects
- Empowering staff to engage in actions to minimize the environmental impacts of the District
- Fostering sustainable design and environmentally sound technologies and practices at the District of Summerland; and;
- Supporting projects that go beyond business as usual, and would not otherwise be undertaken
Projects must meet eligibility criteria that include GHG reduction potential and financial viability, and can fund materials, staffing, equipment, or other costs deemed appropriate.