More Funding, Especially to Women, Towards Climate Adaptation Goals

There is a significant funding gap for climate adaptation – especially for women. Public financing will not be sufficient to close this gap, but it will be crucial for supporting the most vulnerable and facilitating private sector investments where funding and support is needed most.

Inclusive financial systems play an important role in channeling finance to the most vulnerable, including payment systems and last mile agent networks that enable access to social safety net payments, climate risk insurance products, savings for emergencies or affordable credit for investments in climate-resilient assets and more resilient livelihoods.

Development funders are thirsty for guidance and good practices to identify where they can be catalytic and crowd in the private sector for greater investment in climate adaptation.

Funding to support inclusive financial systems may be an entry point for funders with significant potential for climate adaptation impact and a clear role for private sector investment.

Where and how funders allocate funding is determined by their organizational strategies and priorities. Over the past two to three years, development funders and many impact investors have adopted strategies focused on addressing climate change and its impacts.

More recently, especially after COP26, funders are seeking ways to allocate more funding toward climate adaptation goals. To better understand what funders are doing and whether financial inclusion is leveraged to achieve and accelerate progress toward those goals, CGAP conducted desk research and interviews over the last year (2022-2023).

Given the importance of gender equity goals and growing evidence that climate change and public and private sector responses to it are impacting women disproportionally, the research also examined how gender outcomes are embedded into climate strategies and projects.

By Silvia Baur-Yazbeck

https://www.ipsnews.net/2023/06/need-funding-especially-women-towards-climate-adaptation-goals/