Achieving progress on system transitions will be contingent on the ability of actors and institutions to access the financing they need to invest in innovation, adaptation and mitigation, and broader system change . By greening their investment portfolios, investors can support reduction in vulnerability to the consequences of climate change and the reduction of GHG emissions. Finance can contribute to the reduction of GHG emissions, for example, by efficiently pricing the social cost of carbon, by reflecting the transition risks in the valuation of financial assets, and by channelling investments in low-carbon technologies . At the same time, there is a growing need to spur greater public and private capital into climate adaptation and resilience including climate-resilient infrastructure and nature-based solutions to climate change. For instance, the Green Climate Fund, established within the framework of the UNFCCC, is assisting developing countries in adaptation and mitigation initiatives to counter climate change.
IPCC
Climate Change 2022: Impacts, Adaptation and Vulnerability
IPCC Report