Catalogue of Fiscal Tools to Advance Adaptation
A Resource From the Economic Tools to Advance Adaptation (ETAA) InitiativeCatalogue of Fiscal Tools to Advance Adaptation
Explore practical fiscal tools that can be used to fund, finance, and advance climate adaptation.
Municipalities across Canada face an estimated $5.3 billion in annual investment needed to adapt infrastructure to climate change. At the same time, many municipalities have limited fiscal flexibility and rely heavily on traditional revenue sources to fund infrastructure and other priorities.
To close Canada’s adaptation investment gap, municipalities need to make strategic use of existing fiscal tools, while also exploring opportunities to bring together different sources of capital. When applied with climate resilience in mind, tools such as user fees, reserve funds and local improvement charges can help create predictable cash flows, support long-term investment, and make adaptation projects financeable.
The Catalogue of Fiscal Tools to Advance Adaptation examines how municipalities can use and optimize existing fiscal tools to support climate adaptation and climate-resilient infrastructure. It includes a primer and a series of individual briefs that:
- Explore how specific tools can be used;
- Assess their strengths and limitations through a common analytical framework; and
- Highlight examples of how they have been applied in practice.
The catalogue is designed to help municipalities optimize the use of the fiscal tools they have at their disposal. This involves more than matching old tools to new challenges—it’s about fundamentally reimagining how traditional fiscal tools can be leveraged for climate adaptation.
Find Fiscal Tools to Fit Your Needs
The catalogue includes 26 fiscal tool briefs, organized across seven categories. Each brief examines how the tool works, relevance to adaptation, accessibility and feasibility, risk and scalability, and provides practical examples. Each brief also includes a standardized evaluation matrix and a best use context, giving a quick, comparable snapshot of when and where each tool is likely to fit.
Click on the links below to download the briefs and explore options, understand trade-offs, and consider which fiscal tools may be best suited to your municipality’s context and priorities.
Fiscal Tool Briefs
Intergovernmental Transfers and Grants
User Fees and Regulatory Charges
Other tools used in some jurisdictions
A Resource From the Economic Tools to Advance Adaptation Project
The Catalogue of Fiscal Tools to Advance Adaptation was developed through the Economic Tools to Advance Adaptation (ETAA) project. ETAA is a national initiative that helps Canadian municipalities gain a better understanding of the financial consequences of climate change, make proactive data-driven decisions, and strengthen their ability to build resilience. ETAA tests existing tools, develops knowledge about their application, identifies gaps, and scopes potential solutions.
The Catalogue of Fiscal Tools to Advance Adaptation was developed through the ETAA project. ETAA is a project led by ICLEI Canada with guidance from a Steering Committee and financial support from Natural Resources Canada’s Climate Change Adaptation Program.
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