The Resilience Opportunity Unlocking Climate Resilience through Public Private Collaboration 2025

Page 6 of 28 · WEF_The_Resilience_Opportunity_Unlocking_Climate_Resilience_through_Public_Private_Collaboration_2025.pdf

1 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 6
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