Blog Post - June 2024

Adaptation and resilience investment: How do we get the capital it needs

H.E. Dr. Rania A. Al-Mashat, Gim Huay Neo, Dr. Jyotsna Puri, Jonathan Phillips
More than $200 billion is needed annually for adaptation and resilience investments in water and energy systems, agriculture improvements and early-warning systems. This is set to rise if the 1.5 degree Celsius threshold is breached. Yet, today, adaptation and resilience investments are less than one-third of the level needed, with public budgets contributing 98% of total investment. And private capital, constituting most global capital reserves, is not flowing into relevant projects and companies, particularly those serving the most climate-vulnerable in developing countries. A more climate-proof economy is undoubtedly less risky and more profitable for all stakeholders, including private enterprises. Mobilizing the capital needed to build more resilient economies, especially across the Global South, starts with measuring impact and demonstrating the value enhanced resilience provides investors, governments, farmers and other stakeholders. Just as carbon measurement and monetization underpin capital mobilization for climate mitigation, a similar sustained focus is needed to understand better adaptation and resilience investment impacts and project financing pathways.
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