Facilitating international adaptation finance flows from private sources

 This paper discusses the current landscape of adaptation financing, the role of the private sector, and the hurdles impinging on the finance flows from the said source. As a special case, this work looks into the avenues available for climate risk adaptation, where the private sector contribution could be augmented through insurance and associated financial instruments for planned adaptation to climate risk. In addition, the paper makes a case for these financial instruments by looking at damage costs associated with unplanned impacts of climate-related natural calamities. 

Finally, analysis results from the investigation are then woven together as concrete suggestions for increasing private sector participation in adaptation financing in G20 countries. The analysis of the formal route of raising private sector adaptation finance revealed that the need of the hour is to enhance spending on factors that lead to climate change, especially on adaptation vis-à-vis mitigation.