The Resilience Opportunity Unlocking Climate Resilience through Public Private Collaboration 2025
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Historically, climate resilience measures have been
viewed by the private sector through the lens of
cost – a reactive expenditure aimed at minimizing
damage. That narrative is changing. Climate
resilience is increasingly recognized as a proactive
investment in safeguarding assets, strengthening
operational continuity, future-proofing supply
chains and enhancing competitive positioning.
With the right approach, climate resilience can
unlock cross-cutting benefits across sectors, from
resilient agriculture to climate-smart infrastructure.This transition reflects a broader shift in private-
sector climate action – moving from a focus on
mitigation-only strategies to integrated approaches
that also emphasize climate resilience. Analysis
from leading institutions suggests that climate
resilience investments can yield high benefit-cost
ratios (BCRs),5 particularly when compared against
the rising cost of inaction.The climate resilience agenda is accelerating
alongside the need for large-scale investment. As
physical climate risks intensify, the world must build
resilience into infrastructure, supply chains, public
services and natural systems. Yet, while the case for climate resilience is clear, the capital required
to deliver it remains under-mobilized. Unlocking this
opportunity will require far greater involvement from
the private sector, through investment, innovation
and delivery.
1.1 From cost centre to value driverFrom risk to opportunities –
unlocking resilience for the
private sector
Major investment is needed in climate
resilience, creating a growing opportunity
for private-sector leaders.
Despite the growing momentum on climate
resilience, the investment landscape remains
early-stage, and more critically, difficult to measure,
especially for private investments. According to
the Climate Policy Initiative (CPI), an estimated
$63 billion was deployed towards climate adaptation
and resilience in 2022.6 More than 90% of this
was contributed by public-sector bodies, including
development finance institutions and national
governments, with the remainder from the private
sector. This is a stark contrast to mitigation finance,
for which the private sector contributes over half
of investments. However, this discrepancy is also
because private resilience finance is far harder to
quantify and capture, and the current figure tracked
by CPI likely represents just a portion of actual
private-sector investment in climate resilience.In addition, current tracked private investment
is concentrated in sectors such as water and
wastewater, with significantly lower capital
deployed towards agriculture and cross-sectoral
infrastructure.7 The funding gap remains especially
challenging in developing economies, where
climate vulnerability is high and access to capital
is constrained.
Yet, while the current picture is fragmented,
the investment potential could be significant.
As climate risks become more visible and climate
resilience solutions mature, a growing number
of institutions and investors are recognizing
the opportunity. Understanding how to unlock
this opportunity at scale will be critical to building
a more resilient future.1.2 An emerging investment landscape
$63
billion
was deployed
towards climate
adaptation and
resilience in 2022.
The Resilience Opportunity: Unlocking Climate Resilience through Public-Private Collaboration
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