Failure to invest the bare minimum needed to withstand projected climate damage could cost
The report, tagged, "The Adaptation Economy," which investigates the need for climate adaptation investment in 10 markets - including
"Examples of climate adaptation projects include the creation of coastal barrier protection solutions for areas vulnerable to flooding, the development of drought-resistant crops and early-warning systems against pending natural disasters, "it stated.
According to the report, "Among the 10 markets in the study,
"Even if the world's nations manage to achieve the goals of the Paris Agreement, measures to adapt to climate change must be pursued alongside the global decarbonisation agenda, with the banking sector having a critical role to play in unlocking finance. The
The report also surveyed 150 bankers, investors and asset managers and found that, currently, just 0.4 per cent of the capital held by respondents is allocated to adaptation in emerging markets where investment is needed most.
"However, 59 per cent of respondents plan to increase their adaptation investments over the next 12 months. And on average, adaptation financing is expected to rise from 0.8 per cent of global assets in 2022 to 1.4 per cent by 2030, "it added.
Commenting, the Chief Sustainability Officer,
"All nations will need to adapt to climate change by building more resilient agriculture, industry and infrastructure, but the need is greatest in emerging and fast-developing economies with a disproportionate risk of exposure to the negative effects of rising temperatures and extreme weather."
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