Charting Climate Finance Reform to Spur Accountability and Action CPI

The financing provided for the 112 call system in Ukraine will expand data centres across the country and upgrade their technological capacity, ensuring that critical services are reliable and efficient. Highlight the power of social impact and innovation to drive inclusive growth, support Ukraine’s recovery, and contribute to a sustainable, equitable economy aligned with EU integration. Shaping the Future,” we’ll activate new opportunities for investment, collaboration, and long-term impact. It offers recommended action points to inspire and guide investors, while remaining agnostic about how they choose to implement their individual A&R plans.

Developing a methodology to quantify the economic, social and financial benefits of resilience offers a substantial and critical incentive for financial markets to embed resilience upfront. The main challenge was to mobilise support from CCRI’s founding members by presenting the high commercial potential of specific public good deliverables and, as a result, open up a new market for institutions and industries focused on climate resilience solutions. Investments in infrastructure assets and networks – water and sanitation, energy, transport, housing – are critical, forming the backbone of economies and societies, and the growing impacts of climate change are challenging the integrity of existing and new infrastructure systems. For each topic, the Compass defines clear and actionable mid-term (2030) goals and tracks our collective progress toward them.

Since the days of ancient Rome, when Augustus Caesar organized the first municipal fire brigade,3 governments have taken responsibility for emergency preparedness. And since preparedness is purely a cost, lawmakers have tended to spend as little as possible on it, hoping that next year would be disaster-free. ​Christoph Schult is a researcher in the macroeconomics department of the Leibniz-Institut für Wirtschaftsforschung Halle (IWH). In addition to his doctorate, Christoph holds a master’s degree from Humboldt-Universität zu Berlin and a bachelor’s degree from Martin Luther University Halle-Wittenberg. We aim to be the most respected financial services firm in the world, serving corporations and individuals in more than 100 countries. Prepare for future growth with customized loan services, succession planning and capital for business equipment.

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The second workstream focuses on asset design and structuring, to help integrate physical climate risks into the investment appraisal process. Finally, a workstream on financial innovation is developing new instruments to promote investment and unlock funding and financing in climate resilience. The global need for adaptation finance far exceeds current public and private flows, leaving people and assets increasingly vulnerable to the worsening impacts of climate change. A key reason for this gap could be incomplete information on the costs and benefits of addressing climate risks.

• We made a strategic decision to tailor and apply prescriptive cybersecurity standards—specifically those used in power grids, such as the North American Electric Reliability Corporation Critical Infrastructure Protection standards—to meet regulatory requirements.
• Moreover, many of the benefits expected from these investments were neither monetized nor included in the projected returns because they are difficult to model and quantify.
• By helping investors who are seeking to improve the financial resilience of both individual assets and entire portfolios, CRIF 1.0 also contributes to building resilience in the real economy.
• PCRAM builds on asset management, engineering, financial analysis and climate resilience good practice to create a methodology that is recognisable to each of those professions.

The international partnership of development finance institutions is convened byt he United Nations Environment Programme Finance Initiative (UNEP FI). This paper discusses how using the Triple Dividend of Resilience framework to evaluate the full benefits of 320 climate adaptation investments reveals their full value. Covering adaptation and resilience investments across 12 countries, the study finds that every $1 invested in adaptation can yield over $10.50 in benefits. With average returns of 20–27%, the analysis provides compelling evidence for scaling adaptation finance, improving data collection and appraisal methods, and unlocking synergies with mitigation. The CCRI Legacy Programme is divided into core working groups to address the different levels (systems, asset and financing) in which the mispricing of physical climate risks in investment decision-making is prevalent. Individual or collaborative engagement with investees to better understand approaches to managing physical climate risks, for example, and to help identify potential adaptation and resilience measures that can manage risks and drive shareholder value.

Exploring the rise of nature policy

Underpinning target setting methodology is the Physical Climate Risk Appraisal Methodology, which supports investors to identify physical climate risks, understand their materiality, explore adaptation options, and analyse the best way forward within decision making. Adaptation to climate risk in developing countries could require as much as $300 billion a year by 2030. Meanwhile, the private sector has not until now been incentivised to fund projects to build resilience.

These range from articulating how new Nationally Determined Contributions (NDCs) can support development to how multilateral development banks can leverage first-loss financing to collaborate with other banks. ​Iryna Payosova is an Economist in the New Climate Economy Division of the World Resources Institute in Washington, DC. Prior to joining the WRI, Iryna has worked on climate and energy topics for the World Bank and the Environmental and Energy Studies Institute.

To support action, it also identifies the key decision-makers and supporting actors, including national governments, financial institutions, coalitions, and philanthropic organizations, responsible for advancing each topic. It also highlights relevant initiatives and resources for each topic, helping stakeholders connect with ongoing efforts. Using the Triple Dividend of Resilience framework, this paper evaluated the full benefits of 320 climate adaptation investments across 12 countries, revealing the high and wide-ranging returns resilientinvestment.org of investing in adaptation. It finds that every $1 invested can yield over $10.50 in benefits, with average annual returns of 20–27%. The findings offer strong evidence for scaling adaptation finance, strengthening data and evaluation methods, and aligning adaptation with mitigation to maximize impact. More work is needed to build on these learnings and further demystify adaptation’s contribution to development goals.

It helps structure reform dialogues, ensures accountability, and bridges the gap between ambition and implementation. Whether you’re a national government aligning policy with global reforms, an MDB refining strategic direction, or a civil society advocate calling for action, the Compass is interactive, accessible, and useful across the board. It enables users to track reform progress, identify leading and lagging areas, and ensure efforts align with the principles of the Global Climate Finance Framework. Importantly, the Compass outlines actionable milestones that coincide with critical global events, such as the G20, UN meetings, COP, and World Bank–IMF meetings, where climate and development finance priorities are established. Prior to her current role, Dr. Kapnick was Chief Scientist at the National Oceanic and Atmospheric Administration (NOAA), responsible for guiding the programmatic focus of NOAA’s science and technology priorities.

Investor action falls into three broad categories with multiple options within each (see Figure 1). Examples include reinforcing bridges and highways to withstand more-intense storms and transitioning to drought-resilient agricultural practices in the face of climate-induced water stress. The concept is that a single bond structure could finance the development of resilient infrastructure, while also delivering risk premiums on the peril the resilient infrastructure development is designed to protect against. The Coalition for Climate Resilient Investment (CCRI) today announced that it has successfully completed the transfer of its portfolio of government and investor-focused climate tools, solutions, and financial instruments to not-for-profit partners. The initiative has been endorsed by both former Bank of England Governor Mark Carney and UK Secretary of State for Business, Energy and Industrial Strategy, and COP26 President Alok Sharma, who have recognised the role it can play in helping to finance climate-resilient infrastructure.

Projects focused on resilient energy, cities and transport systems offer wide-ranging benefits, with an average return on investment of close to 30%. Convenes a working group to develop frameworks and guidance aiming to mobilise adaptation finance to build resilience. The CFRF is jointly convened by the UK Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA). The UAE Framework also put forward a Global Goal on Adaptation, for which a structured approach was launched at COP29 in Baku in 2024, the Baku Adaptation Roadmap.

In many of the investments we analyzed, adaptation efforts are key to unlocking resilient development. Closing the adaptation finance gap requires engineers, public and private finance and policymakers to work better together and a new report by the International Coalition for Sustainable Infrastructure shows how that can happen. PCRAM builds on asset management, engineering, financial analysis and climate resilience good practice to create a methodology that is recognisable to each of those professions. Designed as a public good, the platform serves as a common reference point for negotiators, policymakers, MDB staff, civil society, and others to coordinate reform agendas and identify shared priorities. As countries and institutions shift focus from abstract pledges to real-world delivery and impact, the Compass offers clarity on what needs to be done, where momentum exists, and where critical gaps remain. Already, it has begun facilitating alignment across diverse actors, helping translate complex reform goals into actionable pathways.

The authors would like to thank Apurba Ghosal from the Center for Government Insights for her research and operational support; Meenakshi Venkateswaran for designing the article’s graphics; and William Eggers for providing feedback and suggestions at critical junctures. In addition, the authors would like to thank April Rothermel from Pennsylvania Turnpike Commission for her valuable input in the “My take” section. In the face of diverse challenges, from involving 17 different equipment manufacturers to reconciling security and business requirements, our teams showcased resilience and creativity. We modified long-standing processes to accommodate security needs, challenging vendor expectations and devising solutions when security and business priorities clashed. With agencies facing regular operational disruptions, resilience has become a critical enabler of mission success. And this increasingly clear link has elevated resilience to the top of the government’s priority list.

While the funding opportunity was designed in response to unexpected additional revenues, it builds on recommendations made by the PCEF Committee in February 2024 and strategically complements the Climate Investment Plan. “The financing package that we have announced reflects our ongoing and unwavering commitment, since the very first day of this war, to help Ukraine recover, rebuild, and thrive despite the immense challenges it faces. This is a joint effort of Team Europe made possible through close collaboration with the European Commission and EU Member States,” added EIB Vice-President Teresa Czerwińska, who oversees the Bank’s operations in Ukraine. Promote peer-to-peer exchange among European metropolises to share effective strategies for urban investment and resilience. Hosted in Berlin, a symbol of resilience and innovation, the event will spotlight how Kyiv’s recovery and Europe’s future are deeply connected.