The private sector can mobilise finance. However, the forms of finance available for adaptation are limited and directed to huge projects that do not always address local adaptation needs. Private actors tend to join adaptation projects when there is an expectation of large profits, such as in interventions that increase real estate value. Private-led adaptation can lead to 'gentrification' whereby low-income populations are relocated from urban centres and safer settlements. Models that enable the collaboration between public, private and civil society sectors have greater potential to mobilise adaptation finance in inclusive ways.
IPCC
Climate Change 2022: Impacts, Adaptation and Vulnerability
IPCC Report