This discussion explored innovative funding instruments and mechanisms to support adaptation investments and scale up private sector engagement in adaptation and, showcased some successful examples in the agriculture and water sectors.
Developing countries need significant investment in adaptation; however, adaptation finance remains low compared to mitigation finance and comes almost exclusively from the public sector. Private sector investment in climate change adaptation has been relatively low due to a high perception of risk and low returns. Various funds and institutions have piloted approaches to de-risk private investment in adaptation.
The Green Climate Fund specifically, has supported various projects that engage the private sector in financing adaptation and resilience, including in South Africa with DBSA, central America with CABEI, east Africa with Acumen, and Barbados with the IDB. Ghana’s Climate Prosperity Plan aims to attract private investment into a range of projects that will enhance climate resilience in the agriculture, forestry, textiles, manufacturing and urban sectors. The African Development Bank is piloting an Adaptation Benefits Mechanism as a results-based financing model to incentivise private sector investment in adaptation, and the V20 is looking to pilot an Adaptation Accelerator for vulnerable countries.
Panellists from right: Abena Takyiwaa Asamoah-Okyere; Foster Gyamfi; Louise Brown and; Gareth Phillips.
The panel discussion featured contributions from Gareth Phillips, Manager for Climate Change at the African Development Bank; Foster Gyamfi the Principal Economic Officer at the Ministry of Finance, Ghana and; Louise Brown the Director for Triple Capital. The session was moderated by Abena Asamoah-Okyere the Director of Country Platforms at the CVF-V20 Secretariat.
The panel session was co-organised by Triple Capital and the CVF-V20 Secretariat.