Hosted by the Embassy of the Kingdom of the Netherlands and the Climate Markets & Investment Association.
The G7 nations recently recognised the fundamental importance of climate finance in addressing the climate crisis. However, only 8% of overall climate finance has gone towards adaptation so far. The private sector remains an untapped source of financing and expertise. Effective adaptation actions require collective action, investments at system scale and the adoption of innovative technologies and approaches. This raises systemic access barriers for private sector and vulnerable communities alike: prohibitive transaction costs and implementation risks.
A public-private programmatic approach that enables the combination of multiple sectoral finance streams is required, along with non-traditional partnerships that bring the required expertise to effectively de-risk and significantly reduce transaction costs for investments at the watershed scale. On the Road to COP26, we need to focus on crowding in private sector finance that can help support climate smart solutions for vulnerable communities.
This session will focus on elucidating principles for the effective use of climate finance in driving a paradigm shift and creating the enabling environment for effective private sector participation. Based on lessons learned by MDBs, multilateral climate funds and pioneers in this space, this session will discuss the barriers private sector and vulnerable communities face and share the innovative solutions and levers stakeholders have found to stimulate private sector investments in adaptation.