State and trends in climate adaptation finance 2023

This report covers global status and trends of adaptation finance and provides a deeper analysis of Africa at a regional level, given the heightened adaptation needs and opportunities on the continent. Climate change impacts globally have increased the urgency for ambitious action on adaptation. This is especially the case in the world’s most vulnerable regions, including Africa. Climate smart and resilient development pathways offer enormous investment opportunities with a triple dividend of avoided losses, positive economic gains, and enhanced social and environmental benefits.

Key findings of this report, include:

1. Adaptation finance flows declined as a proportion of total climate finance.
2. Adaptation finance needs are rising.
3. Institutional public commitments to adaptation finance can create important momentum, but are currently lacking.
4. Climate commitments made to date by the private sector have been almost entirely focused on the low emissions component of the Paris Agreement.
5. Debt remains the primary financial instrument for adaptation.
6. There are emerging opportunities to improve our understanding of the state of play.
7. Adaptation is intertwined with humanitarian aid, and coordinated action on both will be most effective.