Adaptation has long trailed mitigation within climate finance. In 2022, climate finance for mitigation reached $1.2 trillion globally, while only $68 billion went to adaptation. Yet, while the private sector covered more than half of global mitigation finance that year , it contributed just 8 percent to adaptation spending.
The Adaptation Accelerator Hub (AAH) supports participating governments to develop a government-owned adaptation finance strategy and investment plan that incorporates existing plans and is fully aligned with NAPs and NDCs and is embedded in public investing and budgeting processes. The investment plans supported by AAH will allow governments to combine, blend, and sequence public and private adaptation finance for greater impact. The AAH Private Sector Engagement (PSE) Strategy is designed to bridge the critical adaptation finance gap by helping countries identify where and how private actors can realistically contribute to adaptation. To move adaptation priorities from broad concepts towards investment-ready opportunities and financial close, the framework focuses on:
- Understanding the market;
- Creating enabling conditions; and
- Operationalizing action.