The global community spends USD 30 billion annually on climate adaptation. However, this spending represents a mere 10% of the projected USD 387 billion needed yearly, as per the UNEP’s Adaptation Gap Report 2023. Moreover, only a limited proportion of this funding trickles down to developing countries and finances locally-led initiatives. Locally-led adaptation is key. Adaptation measures tailored to local needs and implemented at the grassroots level are most effective. A localized approach captures the immediacy of climate change impacts and ensures strategies resonate with the respective community’s experiences. The private sector is often overlooked despite being a critical player in adaptation financing. Private finance’s vast potential could usher in a new era of progress toward sustainable development goals and impactful climate adaptation if international, philanthropic, and public sector funds enable it. Blended finance, which combines public and private sector investments, offers a promising avenue to reduce risk and the weighted cost of capital. It allows the use of capital to catalyze innovation and market transformation at scale. Digital technologies can facilitate, accelerate, and mainstream locally-led adaptation planning and the governance functions of monitoring, evaluation, and learning to refine and optimize adaptation initiatives. Read the new whitepaper by the CIFAR Alliance on Enabling and financing locally-led adaptation for more information. 👉 https://lnkd.in/d3Wgn9u8 #EarthDay #ClimateChange #LocallyLedAdaptation #BlendedFinance
