Unlocking Adaptation Finance in Emerging Market and Developing Economies – IMF eLibrary

Year Published

2024

Contributing Organizations

International Monetary Fund (IMF)

Type of Resource

Research/Insights Report

Languages

English

Relevant Topics

Core Topic

Adaptation & Resilience

Topic 2

Risks & Opportunities: The Business Case

Topic 3

Transition Finance

Target Audience

All

Relevant Geography

Global

Resource Description

This report discusses how to mobilize private finance for climate change adaptation in developing countries, where adaptation efforts have largely relied on public funding. It outlines strategies to overcome investment barriers and create enabling environments for private sector engagement, while embedding adaptation into national and sectoral planning processes.

Why This Matters

Developing countries face growing climate risks but limited public funding for adaptation. Mobilizing private finance is essential to close the adaptation investment gap. This report provides actionable solutions to unlock private capital and build climate resilience through effective public-private collaboration.

Key Insights

Highlights adaptation finance as both a risk management tool and an investment opportunity
Identifies key barriers: limited data, policy uncertainty, low financial returns, and lack of bankable projects
Recommends public-private risk-sharing, concessional finance, and incentives to scale private investment
Emphasizes the role of blended finance, financial innovation, and policy coherence
Advocates for mainstreaming adaptation finance into national development strategies and financial regulations