A dissertation submitted in partial fulfillment of the requirements for the degree of Doctor of Philosophy in Regional and Rural Development Planning, School of Environment, Resources and Development

Thesis (Ph.D.) - Asian Institute of Technology, 2020

Effectively utilising climate funds to reduce the risks at the household level is vital to adapt to climate change. This research examined how the support from climate finance affects the engagement in adaptation measures and factors which influence the risk and adaptation appraisal process of households. The empirical research was led in Galachipa of Patuakhali district, affected by climate change. A field survey on 240 beneficiary households receiving climate finance (CF) and 120 non-climate finance households (Non-CF) was conducted. This study followed a methodological approach with applications of quantitative tools and techniques to analyse the household data, which remains limited in the framework of climate finance. Based on household-level data, the study quantified the percentage of finance spent by the households and derived that the CF HHs exhibit higher engagement in adaptation measures than Non-CF HHs and assume most adaptation costs from their own financing. The analysis showed that higher income, assets, social capital and financial support from different sources and information to climate change influence the overall risk and adaptation appraisal of the recipient households. However, delivery modalities of climate finance constrain some households to get support from climate finance since the support is often concentrated on housing, crops or fisheries, which requires land ownership. Many vulnerable households no longer own land and therefore, are systematically excluded. Furthermore, due to the novelty of climate finance and limited experience and understanding of the household adaptation requirements, other poverty reduction and income-generating initiatives may be mis-utilizing climate finance for purposes other than adaptation. The lack of an internationally agreed definition of climate finance continues to allow regular development projects to be mis-labelled as climate change projects. Finally, the research determined that climate finance for adaptation, though not adequate, acted as a catalytic and stimulation factor for the assisted household to explore and invest more funds from other interlinked sources to strengthen adaptation measures in areas of poverty reduction, livelihood activities, housing and others, indicating private proactive adaptation. The empirical findings provide policy-makers, practitioners and planners with practical insights of implementation challenges in the delivery of climate finance for household adaptation at the local level.