The two sides of climate finance: mitigation & adaptation

Here’s an excerpt from this note by Taeun Kwon:

A lot of investors are interested in providing capital for climate change. Few are aware that there are two sides of climate finance: climate change mitigation and climate change adaptation. Currently, only 8% of climate finance goes towards adaptation, most of it coming from public funders.

Dealing with the reality of climate change and preparing for it is critical, especially because climate change effects vulnerable regions and populations the most. A critically relevant sector that is often overlooked is actually the water sector, which deals with investments ranging from water resource management in an increasingly draught-prone climate to flexible flood protection infrastructure for areas with rising sea levels.

This article from Impact Alpha shares more details on how catalytic capital such as the Green Climate Fund helps directing flow of capital towards climate change mitigation.