According to the UNFCCC, adaptation finance includes public, private and alternative sources of finance for supporting adaptation actions, whereby adaptation and resilience are often used interchangeably in this context. Adaptation finance constitutes a crucial enabling condition and shaper of the solution space, depending on other enabling conditions, such as proper planning, implementation and governance, which are also the triggers for investments and finance to flow, ensuring positive adaptation outcomes. Details of adaptation finance can be found in Chapter 17 . The adaptation and resilience options offer multiple benefits, including avoiding risks and losses, economic growth and well-being, as well as social and environmental benefits . Hence, the rate of return on adaptation is large; for example, there is a huge potential of net benefits, that is USD 7.1 trillion while investing USD 1.8 trillion globally in climate resilience and adaptation options, such as early warning systems, climate-resilient infrastructure, improved dryland agriculture crop production, global mangrove protection and building resilience of water resources . These net benefits resulted primarily from reducing future losses and risk, increasing productivity and innovation, and social and environmental benefits. Despite significant uncertainty and concerns over undue focus on efficiency , benefit-cost estimates often ignore important issues of non-economic values, effectiveness of risk reduction and climate justice .
IPCC
Climate Change 2022: Impacts, Adaptation and Vulnerability
IPCC Report