The Adaptation Economy

The case for early action on climate adaptation in emerging markets.?

Building more resilient agriculture, industry, and infrastructure, is crucial, especially in emerging and fast developing economies that are impacted by the negative effects of rising temperatures and extreme weather.?

We examined the need for adaptation investment in 10 developing markets including Bangladesh, China, Egypt, India, Indonesia, Kenya, Nigeria, Pakistan, the UAE, and Vietnam, and found that:?

• A failure to invest an estimated USD30 billion this decade – could lead to a cost of USD377 billion in damages and lost growth by the end of 2030.?
• On average, every dollar spent on adaptation this decade would generate 12 dollars of economic benefit for the 10 markets, highlighting the case for early action.??
• Global financial firms currently have very little of their capital invested in climate adaptation projects in emerging markets: just 0.4% in the case of the firms we surveyed.?
• While almost three in five financial firms say they plan to increase investments in the next year, they also highlight multiple barriers, and call for more product innovation and public-private partnership to unlock capital for adaptation.??

There is a critical place for us to assist in removing the barriers that are preventing investment dollars flowing into adaptation – working with governments and private investors to develop and scale the structures and mechanisms that will catalyse capital at scale.?