How can blended finance drive climate adaptation and resilience?

A significant climate adaptation and resilience funding gap exists, particularly in LMICs, where needs are estimated to be 12-14 times higher than current financial flows. This space is one where British International Investment (BII) is already generating early lessons through their Climate Innovation Facility (CIF), where blended finance is unlocking investment for innovative models and climate technologies.

As BII’s Monitoring and Evaluation partner across the facility, we have developed a case study exploring insights on how blended finance has been used to support climate adaptation and resilience across multiple sectors that include:

✅ Climate-smart agriculture: various technologies and business models that contribute towards making food systems more productive, sustainable, and resilient.

✅ Climate insurance: insurance products that help households and businesses affected by extreme weather events, giving them the confidence to invest in their livelihoods knowing that potential damages are covered in the event of climatic shocks.

✅ Climate-resilient infrastructure: structures and measures put in place to help withstand the physical risks posed by climate change.

While these investments are at an early stage and require risk-tolerant capital, they highlight a range of opportunities that exist across sectors and regions to support climate adaptation and resilience. CIF’s investments are helping to demonstrate how blended finance can bridge the gap to commercial viability for early-stage businesses and projects in the adaptation and resilience space.