Investors Turning Up the Heat on Climate Adaptation
As wildfires and extreme weather escalate, investors are under increasing pressure to allocate more capital to climate resilience, potentially sidelining the longer-term goal of reducing emissions.
Investors have been slower to adopt climate adaptation compared to mitigation. According to the Climate Policy Initiative, in 2019-20, only $49 billion of the global climate finance pool went towards adaptation, versus $586 billion for mitigation.
By 2023, although the overall pool had expanded, adaptation had only grown to $65 billion, while mitigation reached $1.8 trillion.
Investors are under pressure to allocate more capital to climate resilience.
Author's summary: Investors prioritize climate resilience over emission reduction.
- In 2019-20, $49 billion went towards adaptation, while $586 billion went towards mitigation.
- By 2023, adaptation grew to $65 billion, and mitigation reached $1.8 trillion.