Track 4.2: Beyond Carbon: How do we get capital to focus on adaptation?

The interconnectedness and dual importance of climate adaptation and mitigation in addressing climate change, as well as the best way forward to coordinate various sources of capital for the cause, was the topic of this panel moderated by Gaurav Gupta. Speakers emphasised that while adaptation is often seen as an underfunded, understudied secondary priority across sectors, it has a crucial role to play in bolstering climate change mitigation. 

The discussion began by looking at the role of private and philanthropic capital in scaling climate solutions. Ash Enrici and Hongpeng Lei pointed to the importance of investing in developing an authentic connection with grantees and in pursuing evidence-based approaches. The latter help donors and private investors to better interpret data gaps, gain nuanced understanding of local communities, and make sense of the impact of their investments.

Lei raised the challenge of getting buy-in on adaption projects from funders due to the lack of comprehensive measurement systems, and Enrici echoed the challenge, adding that many important outcomes are "soft” and difficult to measure. Hao Xu agreed, explaining that while mitigation is straightforward to measure, adaptation spans various sectors, making it harder to quantify but equally important.

Xu added that private capital can take on the risks of investing in innovative solutions, such as using digital metrics to support climate-adapted agricultural practices, thus helping pilot projects evolve into flexible and scalable business models. He illustrated this point with an example from a Tencent agricultural project, where rice is cultivated without flooding the fields. This not only reduces methane emissions (i.e., mitigation) but also allows rice cultivation in water-scarce regions, contributing to food security (i.e., adaptation). Enrici highlighted the unique role of philanthropic capital in providing long-term and responsive funding, essential for system change.

The speakers called for greater collaboration between the philanthropic, private, and research sectors to strengthen the ecosystem for climate adaptation. A top-down approach from philanthropy can complement the bottom-up efforts from the private sector. Ongoing research and open dialogue between stakeholders are critical to building a resilient climate action ecosystem that can scale solutions and respond to emerging needs, they agreed.

Overall, the session underscored the need for integrated approaches to climate action, where mitigation and adaptation efforts are aligned. The speakers emphasised the importance of including localised perspectives from communities most affected by climate change, and fostering collaboration between these communities and philanthropic, private and research sectors to scale solutions and ensure long-term sustainability.