Blended Finance

Climate Adaptation And Resilience – The Next Frontier For Blended Finance

Kumar Subramanian, Founding Partner & Managing Director, along with Aditya Vikram Jindal, Research Intern at Sculpt Partners, shed light on the pressing need to address climate adaptation and resilience financing in the 8th issue of the Blended Finance Bulletin. They explore the challenges, opportunities, and strategies for mobilizing private capital towards impactful climate adaptation programs.

Here are a few key takeaways:

  1. Urgent Need for Action on Climate Adaptation: Climate science underscores the critical necessity for addressing global warming’s adverse effects, particularly in vulnerable regions like India.
  2. Disparity in Funding Allocation: While the need for adaptation finance is evident, there exists a significant gap in funding between mitigation and adaptation efforts, hindering progress in climate resilience.
  3. Challenges in Mobilizing Private Capital: Defining adaptation, scarcity of granular data, and the absence of robust climate risk assessment tools present hurdles in mobilizing private capital for adaptation financing, necessitating innovative solutions.
  4. Promising Models for Adaptation Financing: Case studies like the Acumen Resilient Agriculture Fund (ARAF) and Lightsmith Climate Resilience demonstrate effective utilization of concessional and commercial capital, offering valuable insights for scaling adaptation initiatives.
  5. Learnings for Indian Impact Investors: Establishing motivated anchor stakeholders, crafting a broad investment thesis, and seizing policy and funding momentum are essential strategies for Indian impact investors to drive impactful climate adaptation programs.
  6. Opportunities in Blended Finance: Overcoming inherent challenges and leveraging blended finance mechanisms can catalyze private investment in climate adaptation, fostering resilience-building efforts in India and beyond.

To delve deeper into the realm of climate adaptation and resilience financing, explore further insights from Sculpt Partners by reading the complete bulletin of the India Blended Finance Collaborative (IBFC) below:

Sculpt Partners – IBFC Bulletin Dec 2023 India Blended Finance Collaborative (IBFC) is a voluntary holistic, multiyear platform to accelerate and mainstream the use of blended finance in India through access to curated knowledge, resources and relevant networks. It is an initiative of Impact Investors Council (IIC) supported by USAID.

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