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There is an urgentneed for climate adaptation to avoid huge socio-economic losses (growing
from today’s $6bn to $60bn p.a.by 2050 in the 136 largestcoastal cities alone).However,non-
availabilityofmoneyand gaps in capabilities are huge barriers.A flow of private money,either
besides or apartfrom public money, needs to be unlocked ifadaptation is to happen quickly
enough.Research (ABL / Ricardo AEA, 2013,Defra,2013) shows thatmanycities (around 80%
in Europe) have low or very low capacityand therefore cannotspecifyrequired resilience
measures.
To unlock moneyflows andto raise capacityofstakeholders,ARCADIS has developed and
successfullytested a new and uniquehigh level business model,the ‘Resilience Pathway2.0’,
with European cities and .reached outto potentialfinancial partners,with encouraging results.
Client
Climate KIC
Scope of Services
Climate adaptation, city Master
planning and unlocking
finances
Contact
Eric Schellekens
Mobile +31627061605
Eric.Schellekens@arcadis.nl
Start Date
11/2013
Completion Date
12/2014
Total Project Cost
€ 350,000.00
Key ARCADIS Staff
Eric Schellekens
Niek Reichart
Jelmer Cleveringa
ARCADIS Project Number
06926002.0000
The Resilience Pathway 2.0
A new way of city and area development with promising climate
impact

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Existing high level engineeringskills andproducts and services have been broughttogether in
partnership with leading deal-structuring experts and financial organisations to help riverine and
coastal cities to access private and public moneyfor climate adaptation.
Resilienceis mostneeded for long-lasting decisions with outcomes thatlast10+ years (e.g.
water and other infrastructure),whichneed to be viable in unpredictable andfastchangingfuture
climate and energyscenarios,where the status quo is usuallythe leastlikelyscenario.These
decisions are difficultand /or expensive to reverse (in moneyand energyterms).This is where
identifying ‘moments ofchange’and defining‘investmentopportunities’seem the wayto go,
while creating a ‘marriage’ between technical,financialand socialengineering.The main phases
of the Resilience Pathway2.0 have been explained in the text below.
Phase 1: Scoping. The outputof this firstphase is a clear briefingdocumentclarifying the
challenges to be addressed,alsoto identifypotential opportunities (‘moments ofchange’) to
address them.
i. Area dynamics and ambitions. The ‘area dynamics’ aspectinvolves
identifying known and likelyactivity around which ‘moments ofchange’ might
be constructed. Itis also importantto identifythe city’s wider agenda and
ambitions.
ii. Climate challenges and other stressors.This buildingblock assesses the
vulnerabilityofan area or city arising from changes in extreme weather
events and from climate changes in both the shortand the long term. Italso
defines mitigation and other challenges (as a resultofsocialand
environmental stressors)
iii. Capacity and Framework assessment. The ‘capacity’ elementofthis
building block aims to define capabilitygaps thatneed to be filled to
implement Resilience Pathway2.0,also to identifyframework conditions
(legislation or regulation,incentives,etc., to be taken into accountin the
‘optioneering’ phase.
Phase 2: Optioneering. The purpose ofthe Optioneering phase is to identifyone or several
promising,fundableand feasible business cases around a development(or a combination of
developments).Thesewill providealternative routes to meeting climate and other objectives of
projects thatwill be attractive to private and other investors. This is a uniqueand crucialphase,
where bringing high-level engineering and financial thinking together is essentialin unlocking
finance for resilience.
i. High level solutions. This involves defining and designingata high
engineeringlevel the developmentin a way that is profitableand fundable,
while also meeting the ambitions and respecting the parameters identified
during the scoping phase.
ii. Socio economic Cost Benefit Analysis. Fundamental to fundableand
profitable solutions s identifying socio-economic losses and benefits from the
various options.
iii. Financial and legal arrangements.The third building block is to develop
developing suitablefinancial arrangements for promising options,to test

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whether these financial arrangements align with the interestofinvestors and
also meetthe needs ofclients and to reduce risks.
Phase 3: Deal Structuring
The purpose ofthe third phase,the Deal structuring phase,is to transform the selected
intervention opportunity– as identified in the Optioneering phase – into a contractwith detailed
specifications and financialand legal arrangements (e.g.permitting’) to deliver the project
objectives:resilientprojects with an acceptable (typicallylow) risk-returnprofile. Again,there are
three buildingblocks.
i. Detailed solution engineeringand permitting.The firstbuilding block
focuses on transformingthe high-level engineeringapproach identified during
the ‘optioneering’phaseinto solutions engineered in detail,alignedwith the
permitconditions thathave been negotiated.
ii. Detailed financial engineering. The second building block focuses on
transformingthe high level financialarrangements chosenduring the
‘Optioneering’phase into detailed financial arrangements.For example,
‘Special Purpose Vehicle’companies need to be setup,detailed contracts
signed,detailed due diligencecompleted.
iii. Specifications and strategic control.The third building block elaborates the
specifications ofthe promising opportunities in a detailedway,e.g.to allow
sub-contracts to be let,i.e.aligned with the contractrequirements and wishes.
The strategic control aspectfocuses on how to avoid collapsing goals.
Phase 4: Project implementation
The aim of the projectimplementation phaseis to getthe projects or developments realised and
well managed.This phaseis a missing link in manystrategies.
i. Project realisation.The firstbuilding block is aboutgetting the development
realised.This will sometimes differ from traditional projectrealisationin that
climate adaptation or climate mitigationor both are seen as oneofthe main
goals ofthe projector development. Also,more projects will have a
‘breakthrough’element.
ii. Asset management. The second buildingblock is aboutthe maintenance of
the assets ofthe projector developmentin order to optimize the climate
impact(and other desired outputs) in the long term as wellas over the life of
the project.
iii. Learning and Capacity and Framework development.The third building
block focuses on creatingthe projects as ‘learning laboratories’,designed to
raise the effectiveness offuture interventions.In addition,capacitygaps
identified in the Scopingphase will be addressedl (e.g.by education,
coaching,hiring,etc.).