Innovative Financial Incentives for Adaptation in Wetland Livelihoods (IFIA)

The Project Objective is to pilot, systematize learning and institutionalize financing instruments for
scaling up adaptation in coastal livelihood activities (e.g., eco-aquaculture, eco-tourism, and non-timber forest
products – NTFP – from mangroves) that contribute to the wetland and mangrove forest conservation and
sustainable use. This will be achieved through: Incentivising private sector engagement with small-scale coastal producers in joint innovation
processes in adaptation technologies; and
ii. Promoting innovations in financing products and mechanisms to support wider adoption of
sustainable wetland and mangrove forest management and other coastal adaptation initiatives
in livelihood activities. The project will support two related technical components to achieve the project’s outcomes and
development objective: Component 1: Demonstrating innovative finance mechanism for adaptation in coastal wetland
livelihoods. This component is supporting the demonstration of two innovation pathways for upscaling financing for adaptation in coastal wetland areas for small-scale producers and communities
through two subcomponents (SC): SC 1.1 Adaptation research innovation fund; and SC 1.2
Innovations in financial incentive mechanisms. These two innovation pathways will lead to the following
outcomes linked to the AF innovation, diversified and strengthened livelihood, and ecosystem
resilience outcomes (see also table F in section III). Component 2: Systematic learning and scaling through policies and programs. This component
will support the institutionalization of component 1 innovations through two subcomponents: SC 2.1
Learning and assessment of adaptation financing mechanisms; and SC 2.2 Policy reforms and
institutionalization. The learning and policy engagement processes will lead to the following scaling up
outcome link to the AF resilient ecosystem outcome (see also table F in section III).