Policy Brief: Engaging the Private Sector in Climate Adaptation Policies

Consensus is growing on the need for global climate change adaptation despite lack of agreement on how to fund it. According to the Adaptation Finance Gap Report produced by the United Nations Environment Programme (UNEP) in 2016, by 2030 adaptation costs will range between $140–300 billion per year (UNEP 2016). These costs cannot be covered by the public sector alone; data from the Climate Policy Initiative show public sector spending on adaptation in 2014 was just $25 billion (CIF 2016), which underscores the need for increased funding in the coming years. The private sector must therefore be engaged to develop adaptation solutions and help mitigate this finance gap.