The goal of this NAP Readiness project is to advance a whole-of-society approach to climate change adaptation planning and implementation through a vertically and horizontally comprehensive NAP process. The immediate objective of the project is to improve planning and implementation for climate change adaptation at national and subnational levels. The NAP that is developed through this project will serve as the implementation instrument for the Palau Climate Change Policy, which is currently under development with support from a different GCF Readiness project. Specific barriers that have been identified through background research and stakeholder consultations can be grouped into 4 areas: i) barriers related to adaptation governance and institutional capacities (e.g. lack of an implementation plan for climate change adaptation; lack of sectoral mainstreaming; weak capacities at the subnational level); ii) barriers related to data- information-knowledge management (e.g. lack of data management architecture and protocols; lack of appropriate vulnerability and risk information; lack of accessible public information about climate change); iii) barriers related to private sector engagement; and iv) barriers hindering access to finance (e.g. lack of fundable project concepts; lack of financing plan).

The project consists of 4 key outcomes that are aligned with GCF’s NAP investment priorities and which will address the aforementioned barriers. These include:

1. Adaptation planning governance and institutional coordination strengthened. This outcome includes activities to formulate and validate the NAP, to build sectoral mainstreaming capabilities which will inform the NAP, to strengthen state-level human and institutional capacities for adaptation planning and implementation, and to explore the potential of utilizing legislation to strengthen Palau’s adaptation response;
2. Evidence basis produced to design adaptation solutions for maximum impact. This outcome includes activities to produce decision-support information for government and non- government to improve the effectiveness and representativeness of adaptation planning. It also includes activities to develop necessary tools and methodologies, as well as human capacities;
3. Private sector engagement is catalyzed. This outcome includes activities to overcome the unique challenges that Palau faces as a microstate small island developing state (SIDS) in engaging and catalyzing the private sector in climate change adaptation and resilience-building; and
4. Adaptation finance is increased. This outcome includes activities to develop concept notes for inclusion in the NAP and eventually for a GCF country program to be developed in the near future.

The direct beneficiaries of the project will be the Office of Climate Change (OCC), the Office of Project Management (OPM), three priority sector line agencies (tourism, education, and biodiversity/conservation/natural resources, the 16 state governments of Palau, and the legislative assembly of Palau. The indirect beneficiaries will be every person in Palau (approximately 18,000 people).