The Resilience Opportunity Unlocking Climate Resilience through Public Private Collaboration 2025

involve uncertain or delayed cash flows, complex delivery models and regulatory ambiguity, making them difficult to evaluate within conventional financing models. These challenges are often compounded by long lead times, unclear asset ownership and exposure to evolving climate hazards. In emerging and developing markets in particular, heightened return expectations are driven by perceived country risk and local currency exposure, which can make long-term climate resilience investments appear less competitive. Addressing these concerns requires a combination of financial, regulatory and policy mechanisms from both private and public sectors. On the financial side, tools such as blended finance, concessional capital, guarantees and first-loss capital, as well as currency-hedging instruments, can mitigate downside risks and improve risk- adjusted returns. On the regulatory side, fiscal incentives, transparent processes, streamlined permitting and resilience-linked procurement can reduce friction and perceived country risk, and increase predictability for the private sector. By embedding these mechanisms into project design and financing structures, different stakeholders with diverse motivations can manage uncertainty more effectively, making climate resilience investments more attractive, more scalable and better aligned with commercial capital expectations. 4.2 Case studies to demonstrate future possibilities for climate resilience Case studies 1 and 2 demonstrate how these levers could be used in practice. The Stormwater Management and Road Tunnel (SMART Tunnel) in Malaysia demonstrates how bundling flood control with tolled infrastructure, combined with a clearly defined PPP , can create a viable model for long-term, blended investment. Case study 2 shows an innovative model that combines performance-based mechanisms and co-benefit monetization to unlock new revenue pathways for nature-based solutions. These examples illustrate that when operational, financial and regulatory enablers are in place, climate resilience solutions not only become feasible, but also investable, offering repeatable models for scaling public-private collaboration. Tools such as blended finance, concessional capital, guarantees and first-loss capital, as well as currency-hedging instruments, can mitigate downside risks and improve risk-adjusted returns. The Resilience Opportunity: Unlocking Climate Resilience through Public-Private Collaboration 18