Strengthening Investment in Adaptation and Resilience
Finance for adaptation and resilience remains modest relative to estimated needs, and adaptation remains largely dependent on grant funding from public sources. Yet, public finance for resilience can be invested more effectively.
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The effects of climate change will continue to manifest themselves in the coming years. Even with substantial progress on emissions mitigation, at least another half a degree of warming may be unavoidable. Perversely, the most vulnerable communities to the effects of climate change are often the least able to prepare for those impacts. If left unaddressed, these impacts will endanger years of hard-won development gains.
Finance for adaptation and resilience remains modest relative to estimated needs, and adaptation remains largely dependent on grant funding from public sources. Yet, public finance for resilience can be invested more effectively to ensure that it reaches vulnerable communities. Private-sector involvement in adaptation remains limited, partly by the lack of data and viable business models.
As the Finance Center continues to expand this area of work, we aim to focus on:
Maximizing the volume and impact of public finance for adaptation and resilience;
Strengthening existing parametric insurance platforms;
Promoting links between insurance and social safety nets; and
Developing private-sector models and approaches to resilience