Driving private investments in climate-resilient development : the role of the public sector

Abstract

Significant investments are required to set developing countries on climate-resilient development pathways. Private sector action towards this end is critical and increasingly emphasized in international political debates. Yet, empirical evidence on current levels of international investments in adaptation measures – “adaptation finance” – and on private engagement is lacking. To advance knowledge on these topics this thesis uses a multi-method approach to: - Map and characterize relevant investment flows, identifying possible avenues through which public intervention can encourage private investments (Chapter 1) - Quantify and evaluate international adaptation finance (Chapter 2) - Provide empirical evidence on the funding strategies that the public sector can use to stimulate private action (Chapter 3 & 4) - Asses the role of Development Finance Institutions in supporting the private sector to identify climate change risks and response measures. The thesis‘ overarching conclusion is that while public finance institutions can have a catalyzing role, national enabling environment are key to create the market conditions for private adaptation.