The UN Development Programme recognizes that bridging the massive gap in adaptation financing will require significant private sector investment and engagement, and is committed to working with the private sector to address the deficit in adaptation finance.
Recent cost estimates associated with adapting to climate change risks are two to three times higher than available international public finance for adaptation. According to the Adaptation Finance Gap Report, the international public finance available for climate change adaptation in 2014 was US$23 billion. Looking ahead, by 2030 it is estimated that adaptation costs will range between US$140-300 billion per year. Even with a large increase in public sector contributions, the volume of finance required to support adaptation in developing countries is far beyond what most expect public finance will be able to contribute.
Greater engagement with the private sector is at the forefront of UNDP’s recent adaptation initiatives, with a range of financial and non-financial instruments being used to facilitate enhanced private investment to manage the risks associated with climate change.
UNDP’s climate change adaptation work with the private sector is organized around the “3 Cs” framework that also informs overall UNDP engagement with the private sector – Convening, Catalyzing & Capitalizing.