Available public- and private-sector finance for fossil fuels is still greater than funding available for climate adaptation and mitigation.
“Adaptation has limits in how much it can protect us from losses and damages,” the IPCC stated, “but the world has been altered enough for adaptation to be prioritised alongside rapidly reducing emissions. The IPCC stated that, if climate goals were to be achieved, both adaptation and mitigation financing would need to be increased substantially.
At the same time, it stated, financial actors – including investors, intermediaries, central banks and regulators – could shift the systemic underpricing of climate-related risks and reduce sectoral and regional mismatches between available capital and investment needs.