Private sector finance and climate change adaptation: how can voluntary private finance support adaptation in developing countries?

The document explores the need for adaptation finance, the role that private finance plays in supporting adaptation in developing countries, and ways in which private finance may support adaptation funding.
In addition, it discusses which adaptation activities are likely to attract equity or debt investors.

Key findings:

• the private sector is already an important source of climate finance
• there is an emerging market for raising new finance from the private sector for adaptation
• there are various ways in which the private sector can support adaptation
• voluntary private finance for adaptation is not new and additional
• private finance will not be distributed evenly

The report concludes that there is a definite need for raising the awareness of the investor community and finance institutions. However, there is also a need for improving their understanding about emerging business opportunities in adaptation.