DanChurchAid Report on Private Investments in Adaptation

Adaptation and resilience efforts to meet the negative effects of climate change in developing countries is massively underfinanced. Compared to climate mitigation investments, the desire and motivation for private investments in climate adaptation faces a number of challenges, in particular to serve rural communities and small-holder farmers, who are already today subjected to climate change.

This study, conducted on behalf of DanChurchAid, investigates how companies and investors can contribute to climate adaptation in developing countries, what is needed to make these investments successful, and which roles DCA and other actors can play in accelerating private investments in climate adaptation. Thus, the study explores opportunities for increased market based private investments in climate adaptation with a focus on the agricultural sector in developing countries.

Furthermore, the study points to three distinct private investment avenues as keys to unlocking private investments in adaptation:
  • Investments in blended finance development programmes with a focus on nature-based solutions (NBS)
  • Collaboration and financing by companies to de-risk their sector, supply chain and assets
  • Private investments, new technological solutions and showcasing climate services to serve the last mile

The study was carried out by NCG partners Jacob Fink Ferdinand and Jakob Kjærtinge Faarbæk on behalf of DanChurchAid