Optimizing EU Funding Programmes for Equitable Urban Climate Adaptation: A View From Below

In the fast-evolving arena of climate finance, equitable access to and allocation of funds for adaptation continue to pose a significant and urgent challenge. In theory, to prepare for the impacts of climate change in an equitable way, regional, national, and European Union (EU) funding tenders on climate adaptation should prioritize the most climate-vulnerable local administrations. However, evidence on the ground suggests that other factors are at play. We build on 11 interviews with policymakers and consultancy agencies in Portugal working in the field of climate adaptation to understand the factors that influence the absorption of EU funds for climate adaptation projects and how the criteria of EU funding programmes affect equitable access spatially in Portugal. Our findings indicate that EU funding programmes fail to prioritize the most vulnerable, fostering a culture of local competition, projectification, expertization, and climate finance snowballing. We argue that this dynamic has three potential policy implications: urban areas may be pushed off the climate adaptation map, compelled to engage in relatively small-scale low-impact experimental projects, or propelled into debt relations with (public) financial institutions. Our study concludes with some proposals and policy recommendations for EU policymakers and urban climate adaptation officers across scales to both equitably and effectively finance climate adaptation projects.