Climate finance potential to unlock private sector investment in adaptation
The increasing variety of climate, water and biodiversity funds and financing facilities, has the potential to increase complementarity. In practice, this increasing fragmentation is becoming a systemic barrier for local access to finance. The development of novel governance structures for collective investments at watershed level and innovative procurement strategies is required to deal with the remaining systemic barriers for private sector participation. A public-private programmatic approach that enables the combination of multiple thematic finance streams is required along with non-traditional global-local partnerships that bring the required expertise to effectively de-risk and significantly reduce transaction costs for investments at the watershed scale.