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Does adaptation finance invest in disaster risk reduction?

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This report argues that there is a gap for disaster risk reduction (DRR) financing, which could be filled by adaptation funds that have the capacity to invest directly in DRR activities and to integrate DRR into their other activities. It suggests that water and coastal protection are the sectors where DRR is most integrated. DRR investments through adaptation funds appear to be more focused on the poorest countries in comparison to DRR finance from international aid. This was particularly the case for Small Island Developing States (SIDS). DRR channelled through adaptation funds also appears to prioritise activities related to the understanding of risks with a preventive aim, while DRR channelled through international aid prioritises effective responses after a disaster has occurred. While there is a strong emphasis on the integration of DRR measures in national plans, the report argues that further work is needed to realise this objective in practice.

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