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Abstract
Global average temperatures temporarily breached the threshold of 1.5°C above pre-industrial levels in 2024, and economic losses from extreme weather-related events are increasing rapidly, with profound social and economic consequences. Accelerating investment in adaptation is a critical element of the broader efforts needed to increase resilience.
This report, developed by the OECD in collaboration with the African Development Bank, identifies key interconnected barriers hindering investment, including macroeconomic and capacity-related challenges, specific barriers to public and private investment, and access to international concessional finance. Addressing the adaptation investment gap will require increased efforts to mobilise and align finance flows from all sources to support climate-resilient development. To achieve this, the report proposes strategic actions across capacity and data, domestic policies, and international support. These include strengthening access to climate data, improving transparency, integrating adaptation into national planning and budgeting, enhancing the contribution of insurance markets, leveraging blended finance and innovative financial products, and enhancing co-ordination. A dedicated deep dive on Africa highlights the continent's disproportionate vulnerability and outlines opportunities to support adaptation investment through tailored approaches.
