Experts urge funding shift towards climate adaptation projects

Experts are calling for more funding for climate adaptation and resilience, especially in vulnerable areas. They believe innovative financing and cooperation among governments, investors, and communities is essential to close the funding gap. At the Raisina Dialogue 2025, key discussions focused on financing climate resilience. Most funding has gone to mitigation efforts, which take up over 80% of climate funds. However, adaptation and resilience are still underfunded. These are vital for the socio-economic and cultural well-being of affected communities. Pepuke Bartowi, director of the Bridgetown initiative in Barbados, shared insights on a successful debt-for-climate swap in her country. This initiative has helped reduce $300 million in debt and save $130 million over ten years. The funds are being used for essential projects like water treatment, which are crucial for the water-scarce island. Bartowi emphasized the need for strong partnerships and technical support to implement similar projects. She called for broader financial guarantees to encourage private investment and develop adaptation projects, especially in countries facing similar challenges like coastal erosion and water scarcity. Dr. Nilanjan Ghosh from ORF India highlighted the need for a shift in climate finance. Investors tend to favor mitigation projects with clear returns, while adaptation efforts often seem less profitable. He pointed out that every dollar spent on adaptation could bring a return of $4 over ten years, suggesting that adaptation measures need to be recognized for their social value as well. The discussion emphasized the urgent requirement for new policies, financial incentives, and better governance. Experts urged for blended finance models and strong institutional frameworks to ensure that adaptation receives the necessary funding and attention.