The brief “Bridging the Adaptation Finance Gap in Asia” published by Climate Policy Initiative concludes that addressing Asia’s climate adaptation finance gap requires a coordinated, whole-government approach to overcome systemic barriers such as limited institutional capacity and misaligned financial instruments. Scaling international public finance – prioritizing grants and other concessional funding is essential to meet commitments under the Paris Agreement and Glasgow Climate Pact. Strengthening local participation and leadership ensures that adaptation finance effectively reaches vulnerable communities, aligning with principles of locally led adaptation.
Innovative tools, such as community-level callable capital and performance-based resilience grants, exemplified by initiatives like the LoCAL Facility, demonstrate practical ways to improve risk profiles, mobilize capital, and enhance accountability at the grassroots level. A holistic, integrated strategy that combines institutional capacity building, improved financing quality, and community empowerment is vital to fostering sustainable resilience and securing a climate resilient future for Asia.
Access the brief here