As adaptation priorities expand and expectations for durable results increase, the 2021 Annual Evaluation Report by the Independent Evaluation Office examines how Least Developed Countries Fund and Special Climate Change Fund projects convert climate finance into sustained resilience.

Drawing on validated terminal evaluations and rating analysis, the report reviews 18 projects completed in 2021, representing $98.2 million in funding and $315.8 million in cofinancing. Most projects achieve satisfactory outcomes at 78 percent, yet only half of those rated demonstrate likely sustainability, indicating that longer-term institutional and financial arrangements need stronger attention.

Evidence from terminal evaluations shows that results are more durable when project scope matches technical and staff capacity, activities are sequenced realistically, and stakeholders remain engaged beyond implementation.

Monitoring and evaluation design is generally sound, but implementation is weaker. Gender considerations also receive more consistent attention during implementation than at project entry.

The report recommends strengthening monitoring and evaluation implementation, embedding sustainability planning from the outset, and reinforcing stakeholder capacity and private sector engagement to sustain adaptation gains.