Private sector financing for adaptation has been increasingly promoted as a response to realised adaptation finance needs . However, private sector financing of adaptation has been limited, especially in developing countries . Tracked private sector finance for climate change action has grown substantially since 2015, but the proportion directed towards adaptation has remained small ; in 2018, these contributions were 0.05% of total climate finance and 1% of adaptation finance. A key challenge for private sector financing of adaptation is demonstrating financial return on investment, as many benefits of adaptation arise as avoided damages or public goods, rather than direct revenue streams . Leveraging private finance in developing countries is often more difficult because of risk  to investors, reducing the pool of potential investors and/or raising the cost  of investment  .
IPCC
Climate Change 2022: Impacts, Adaptation and Vulnerability
IPCC Report