Image Source: UNDRR

A new initiative led by the United Nations Office for Disaster Risk Reduction (UNDRR), Standard Chartered, and KPMG is calling for a significant increase in financing for adaptation and resilience, particularly in emerging markets, ahead of COP29. 

The initiative introduces a groundbreaking Guide for Adaptation and Resilience Finance, supported by over twenty leading financial institutions, Multilateral Development Banks (MDBs), and NGOs. This guide aims to provide clarity and transparency to accelerate investments by outlining eligible financeable activities and offering practical guidance on adaptation and resilience investments. It aligns with the UNDRR's Climate Resilience Classification Framework and identifies over 100 investable activities, such as climate-resilient crops, renewable energy storage solutions, and natural flood protection.

The urgent need for such initiatives is underscored by recent UN findings, which highlight 2023 as the hottest year on record, with escalating economic losses from climate-related disasters exceeding USD 330 billion annually. Despite this, less than 10% of global climate finance currently targets adaptation, exacerbating a widening financing gap estimated at USD 212 billion per year for developing countries alone through 2030.