This report analyzes Montenegro’s adaptation strategies and needs to address the impacts of climate change in its coastal areas, particularly the Bay of Kotor, one of the two pilot sites of the GEF MedProgramme SCCF Project. It highlights the challenges related to rising sea levels, extreme weather events and water resources management in the country. This study analyzes in particular the capacity of the main Montenegrin public and private actors to integrate climate risks into their investment and development strategies, and is particularly interested in the country’s capacity to mobilize funds to respond to these adaptation challenges, for example in key sectors such as agriculture, health, tourism and water.