In the Implementation Plan the city reflects on the financial consequences of the implementation of climate adaptions options. One of the problems with climate adaptive and resilient cities is that the costs and benefits of climate adaptation options are often implicit (or even non-financial) and usually divided among many stakeholders (split incentives). The goal of this step is to increase transparency on the financial aspects and to develop collaborative business cases on the chosen adaptation options. This to assure that the financial consequences of the implementation plan are sufficiently managed and societal benefits are included.
Preconditions to manage the financial consequences of the implementation plan is to have a detailed cost-benefit calculation of the various adaptation options and a clear overview of the stakeholders involved.
The result of this step is a thorough reflection on how to improve bankability of the adaptation options that are defined in the Implementation Plan.
Based on the financial information on different adaptation options gathered before, initiate the process in which relevant stakeholders discuss, analyse and share their costs and benefits related to the implementation of the adaptation strategy / implementation plan.
Key is to demarcate project boundaries in such a way that sharing costs and benefits at a broader level is possible. Please see the Frequently Encountered Challenges pages on ‘Integrated Planning’ and ‘Developing a Business Case’ for further information and guidelines on how to deal with economic and financial dimensions of climate adaptation.
The cities of Bolton (Greater Manchester), Genth, and Nijmegen have, together with Arcadis and TNO intensively worked on defining co-benefits and identifying added value of bankable adaptation solutions. The report of these Integrated Planning Challenges and Masters Optioneering can be obtained upon request:
Supporting tools and methods
The BART analyses the investments connected to adaptation measures, calculates the expected benefits and provides insights into the cost-benefit ratio. It also splits the investments and profits over the different shareholders and future consortium partners, directly aligned to their interest.
Added value that could not be monetised will be shown as well and be rewarded via MultiCriteria Analysis (MCA).