Closing the gap between available financing for climate change adaptation and the needs of developing countries requires looking beyond traditional sources of finance—i.e., grants and (concessional) loans—to innovative financial instruments and mechanisms that can unlock (private) investment. These instruments are increasingly viewed as a means to scale up the investment needed for countries to achieve their climate adaptation goals. The Inventory of Innovative financial instruments for adaptation includes mechanisms and approaches that can be used to acquire, structure, govern, and allocate financial resources towards adaptation priorities. They can enable access to financial resources from financial institutions, private investors, institutional investors (such as pension funds), impact investors, foundations, and other philanthropists, and may be blended with traditional sources of financing.
This resource provides further guidance related to the Adaptation Investment Planning Supplement of the Climate Investment Planning and Mobilization Framework (CIPMF).