Unlocking Adaptation Finance in Emerging Market and Developing Economies – IMF eLibrary

This report highlights the need for adaptation in developing economies, the reliance on public finance in adaptation efforts, and the necessity to mobilise private sector investment by addressing barriers and creating incentives. It recommends measures to advance adaptation finance and integrate it into national and sectoral planning processes. This report also highlights the importance of private sector finance and the required reframing of adaptation investments from being seen not just as a risk exposure but also as an investment opportunity. Finally, It emphasises the need for addressing real and perceived investment barriers, public-private collaboration and risk sharing, as well as financial incentives and innovation to unlock scalable, inclusive solutions.