Mobilizing Private Adaptation Investment
In order to meet adaptation finance goals, the private sector will need to better understand adaptation and resilience finance.
2030 Goals
- Private capital has a clear path to investment in adaptation and resilience projects, with a developed business model and an identified rate of return.
- Climate risk is accurately priced into private investment decision making.
- Measurement and defined KPIs to report to investors.
StatusNo Status
No Status
- Virtually no private sector companies self-identify their investments as “adaptation”.
- Private sector adaptation commitments tracked in Climate Policy Initiative's 2023 Global Landscape of Climate Finance include ~USD 500 million from corporations and ~USD 500 million from institutional investors (including foundations).
- The lack of data on private sector adaptation finance yields significant uncertainty regarding current progress on addressing climate vulnerabilities and leaves decision-makers without critical information about where they should target additional investment.
Relevant Actors & Audiences
Private FIs
Lightsmith Climate Resilience, Sun Funder, Private Equity, Venture Capital
Public FIs
NDBs, SOEs, The Global Fund for Coral Reefs, National climate funds
Multilateral Development Banks
Green Climate Fund, Global Environment Facility
International Organizations
United Nations Development Programme
Governments
Ministries of Finance
Supportive Stakeholders
Global Center on Adaptation
Milestones
The below events contain milestones related to Mobilizing Private Adaptation Investment.
June
4th International Conference on Financing for Development
Milestones
Mobilizing Private Adaptation Investment
Expansion of SCALE and announcement of similar platforms, with additional commitments from MDBs, DFIs, and private investors.
October
WBG/IMF Annual Meetings 2025
Milestones
Mobilizing Private Adaptation Investment
Reporting frameworks for adaptation finance presented, with recommendations for standardization.
November
UNFCCC COP30
Milestones
Mobilizing Private Adaptation Investment
New financial instruments announced, including adaptation-focused bonds and guarantees to crowd in institutional investors. Commitments from corporates and investors to scale up adaptation finance, leveraging blended finance models and de-risking tools.
Resources
A wide range of efforts exist to draw the private sector into adaptation (both organized by the private sector and externally organized). Some of these are listed below.
Evolution of CRAFT
Private Finance, Mobilizing Private Adaptation Investment
The Lightsmith Group, with funding from Nordic Development Fund (NDF) and the Global Environment Facility (GEF), is leading the Climate Resilience and Adaptation Finance and Technology-transfer facility (CRAFT) project. The funding will support development and launch of the first private sector investment strategy for climate adaptation and resilience solutions. Conservation International is the GEF Implementing Agency for this project.
Project GAIA
Private Finance, Mobilizing Private Adaptation Investment
A multi-stakeholder climate and blended climate finance platform, supported by public and private sector organizations that offer long-term loans for climate adaptation and mitigation investments in 19 of the most climate-vulnerable countries in the world, making the funding accessible through sources previously unattainable to participating countries.
InsuResilience Investment Fund
Private Finance, Mobilizing Private Adaptation Investment
InsuResilience Investment Fund (IFF), managed by BlueOrchard, combines resources from the private sector, in this case, impact funds, with technical assistance and concessionary first-loss guarantees from public institutions like the KfW Development Bank.
SCALE
Private Finance, Mobilizing Private Adaptation Investment
The SCALE project explores the launch of a new scalable climate finance platform to provide the full range of equity, credit, and technical assistance to private companies whose technology and solutions address the impacts of climate change globally. Building on the lessons learned from the first private investment fund for adaptation and climate resilience, Lightsmith will map climate resilience companies, engage investors and funders, and design systems for the new platform strategy.
G20 Sustainable Finance Working Group
Private Finance, Mobilizing Private Adaptation Investment
Under the 2024 Brazilian Presidency, focus on nature-based solutions financing by exploring innovative financial instruments and leverage risk-sharing to maximize private sector participation.
UNFCCC Adaptation Private Sector Initiative (PSI)
Private Finance, Mobilizing Private Adaptation Investment
UNFCCC's Adaptation Private Sector Initiative (PSI) under the The Nairobi work programme: UNFCCC knowledge-to-action hub on adaptation and resilience, The Private Sector Initiative (PSI) aims to catalyze the involvement of the private sector in the wider adaptation community.
CPI report: Tracking and Mobilizing Private Sector Climate Adaptation Finance
Private Finance, Mobilizing Private Adaptation Investment
CPI Analysis finds the need to develop a taxonomy for tracking private sector finance in adaptation and build a machine learning model and dataset to support the expansion of its tracking.