Why? It provides information on and helps to monitor the volume of activities contributing to the adaptation objective of the Paris Agreement. This tracking can also be used to report on the contribution to international climate finance goals, particularly among development banks.
How? Many institutions rely on a context- and location-specific approach to track adaptation finance. This is for example the case of the group of multilateral development banks (MDBs) and the International Development Finance Club (IDFC), which have developed Common Principles for Climate Change Adaptation Finance Tracking. Other regional or national taxonomies such as the EU taxonomy also help to measure the volume of investments significantly contributing to the adaptation objective relying on this approach.