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As the world takes steps to reduce carbon emissions, for many of the most vulnerable and exposed individuals, this may be too little, too late. We urgently need to take action to adapt and strengthen resilience.

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$143 billion

Estimated annual cost of climate change-attributed extreme weather events (2000-2019)

145 countries

Have set or are considering net zero targets

Funds interests for A&R market

Despite the urgency, the scale of private investment in A&R remains low. Finance for climate adaptation presents several challenges. This phenomenon is explained by four main facts :

• Adaptation addresses both chronic risks and acute shocks
• Startups face difficulties creating business models in this area due to unpredictable and cyclical events
• Adaptation measures are implemented on a hyper-local scale, requiring startups to innovate in their go-to-market strategies and scaling approaches
• The communities most affected by climate crises are often the least resourced, with limited access to capital and social prestige, and have not always been well-served by tech companies

ResearchGate : The countries most/least at risk against climate change

But today, A&R is emerging as a theme for growth-minded investors after several years of weak attraction. The climate A&R segment opportunity is significant and growing because stakeholders finally realized one thing : the longer it takes to plug this funding gap, the more expensive it gets to fight against climate change.

$200 billion = investment targets on A&R solutions… (World Economic Forum)

… global amount needed annually to limit climate change (three times current funding)

Market organization