Private finance will play an important role in driving innovation and funding adaptation, particularly given the deficit between the funds needed to address adaptation globally and the limited availability of public sources. The $100 billion required annual investment in adaptation will not only come from public sources, but profitable investment opportunities for adaptation are still not yet well developed.
Many companies are taking a “wait and see” approach to climate action, while others are investing in managing risks to their businesses or offering goods and services that help adaptation. Meanwhile, international finance institutions, such as Multilateral Development Banks and the Green Climate Fund, are trying to leverage private investment for adaptation with public resources.
Several challenges standout: the long timeline of climate change which is ill suited to short term business planning; poor communication between the science community and the private sector; and the high costs of adaptation and the uncertainty of financial benefits. Finally, a lack of capacity amongst project developers – particularly in developing countries – on how to pitch adaptation initiatives has hindered investment.
This panel brings together the experience of a number of institutions that have been focused on scaling up the level of private interest and investment in adapting to climate change. Much of the acquired experience comes from lessons learned in financing renewable energy projects in developing countries. The panel will present recent initiatives on scaling up investment in adaptation and outline future directions for researchers, financiers and project developers.
- Michael Rantil (CTI)
- Moderator: Mark Redwood (IDRC)
- Ulf Moslener/Christine Gruening (FS)
- Francisco Alpizar (LACEEP)
- Martin Hiller (REEEP)
- Peter Storey (CTI PFAN)
Contact: Dr. Christine Grüning / c.gruening [at] fs.de