Changing climate means growing demand for ‘adaptation finance’
A mismatch between the growing climate crises and underinvestment in mitigation solutions such as renewable energy means more investment will be needed to boost the resilience of agriculture, put up seawalls and sure up water supplies.
Climate adaptation has remained largely overlooked and underinvested. The Climate Policy Initiative estimates that total adaptation finance from all government sources was only $22 billion from 2015 to 2016.
Now, investment funds and vehicles that target adaptation solutions are beginning to line up to move significant amounts of capital.
Climate financing is top of the agenda at the United Nation’s annual conference on climate change (COP 24) gets underway in Katowice, Poland. Three years ago, nearly every country signed the landmark Paris Agreement on combating climate change. One outcome of the Paris Agreement was that developed countries were urged to mobilize $100 billion annually by 2020 to help developing countries tackle global warming. It is increasingly clear that government budgets alone will not be enough to reach this goal. Mobilizing billions will require bringing in the private sector.