Private sector finance and climate change adaptation

This policy brief responds to recent signals from large institutional investors and suggests that there is potential for raising new finance specifically for adaptation, provided the right investment products are available. It looks at various ways in which private finance can support adaptation actions, particularly through lending, and recommends actions that could increase the contribution made by private finance to the efforts of developing countries to reduce their vulnerability to climate risks.

It asserts that the discussion to date on the role of private finance in supporting adaptation is limited. There seems to be little awareness that private capital is already drawn upon by international finance institutions to support adaptation (as well as mitigation). This policy brief seeks to address this.