Many adaptation interventions for most vulnerable countries and communities provide no adequate financial return on investments and can therefore only be funded with concessional public finance . Yet, public funds alone are insufficient to meet rapidly growing adaptation needs. Public mechanisms can help leverage private sector finance for adaptation by reducing regulatory, cost and market barriers through blended finance approaches, public-private partnerships, or innovative financial instruments and structuring in support of private sector requirements for risk and investment returns, such as green bonds . Sub-national actors can be core agents to conceptualise, drive and deliver adaptation responses, and unlock domestic resources in the implementation of adaptation action , provided they are sufficiently resourced and their participation and agency are supported.
IPCC
Climate Change 2022: Impacts, Adaptation and Vulnerability
IPCC Report