Accelerating global action on climate adaptation is critical to reducing vulnerability and building resilience, but significantly larger financial resources are urgently required. In addition to various environmental and social gains, adaptation can generate substantial economic returns. Depending on the sector, investments in adaptation and improved resilience can produce rates of return ranging from 2:1 to 10:1, or even higher in certain scenarios.  
Total tracked finance for climate adaptation has risen over the years to roughly USD 63 billion in 2022 – up 29% from in 2020. However, these funds pale in comparison to estimated needs. Developing countries alone, for example, will require anywhere from USD 215 billion to USD 387 billion per year this decade to adapt. While both public and private finance for adaptation must increase dramatically, particular focus on mobilizing private investments is warranted as the vast majority of tracked adaptation finance flows from public actors – 98% in 2021/2022. 

Accelerating global action on climate adaptation is critical to reducing vulnerability and building resilience, but significantly larger financial resources are urgently required. In addition to various environmental and social gains, adaptation can generate substantial economic returns. Depending on the sector, investments in adaptation and improved resilience can produce rates of return ranging from 2:1 to 10:1, or even higher in certain scenarios.  
Total tracked finance for climate adaptation has risen over the years to roughly USD 63 billion in 2022 – up 29% from in 2020. However, these funds pale in comparison to estimated needs. Developing countries alone, for example, will require anywhere from USD 215 billion to USD 387 billion per year this decade to adapt. While both public and private finance for adaptation must increase dramatically, particular focus on mobilizing private investments is warranted as the vast majority of tracked adaptation finance flows from public actors – 98% in 2021/2022.