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With climate-induced losses soaring, green finance must adapt by scaling investment, mitigating risks, and ensuring financial resilience in a warming

As global climate adaptation finance continues to fall short of the requirement, the current diversity of interpretations and fragmented markets are further disincentivising investors. A localised adaptation finance taxonomy would establish clear standards, enabling investors to compare opportunities and better assess environmental impacts. This brief argues for a sector-specific framework for adaptation finance. It examines key challenges in dev

The current gap in global adaptation finance for developing countries is estimated at US$194-366 billion per year. This brief highlights the critical role of domestic public funding in driving adaptation initiatives. While international climate finance mechanisms exist, their effectiveness is limited by slow disbursement processes and regional disparities in fund distribution. Public finance management systems can act as catalysts for mobilising

The African continent faces escalating climate threats, with rising temperatures, sea-level rise, water stress, and extreme weather events causing widespread negative consequences. This brief argues for the need to build a business case for greater adaptation investment in Africa. Climate change is already causing significant economic losses, with African countries losing 2-5 percent of GDP annually, while adaptation investments could yield retur

As the frequency and impacts of climate events increase, demand for adaptation at the local level becomes urgent. The adaptation finance received from developing and least- developed countries is estimated to be less than USD 25 billion per year, which is exponentially less than the required amount of USD 215 billion per year. Further, the evidence indicates that less than 10% of global climate finance reaches the local level. Local communities l