Germany's allocation of bilateral adaptation aid: Understanding the role of institutional context in shaping allocation decisions

Allocation of adaptation aid to the countries most vulnerable to the adverse effects of climate change is a topic that has received increasing attention in global climate governance in recent years. Studies have attempted to explain the role of vulnerability as a determinant of adaptation aid using largely quantitative methods and focusing on recipient characteristics with varying results. I argue that we cannot assess the role of vulnerability in allocation decisions without paying attention to the decision-making process itself. This article examines how the allocation of bilateral adaptation aid to developing countries is shaped by donors’ institutional context, consisting of the institutional identity, institutional beliefs and allocation stages. Through a case study of the allocation process of the German Federal Ministry for Economic Cooperation and Development, I show that these three elements of the institutional context govern how vulnerability is understood and considered in the allocation of adaptation aid.