Investments to Adapt to Climate Disruption: the Case of Critical Infrastructure

Climate change requires urgent adaptation strategies that complement mitigation efforts. In particular, it is crucial to adapt infrastructures in order to prevent major losses in the future and ensure the socio-economic resilience of regions. This will likely offer a high return on investment. However, exclusively public funding models are inadequate for dealing with the level of adaptation needs, which explains the worrying backlog. It is therefore imperative to develop hybrid models that include private funding to tap into the « hidden value » of adaptation. Various sources of funding can be explored, including public-private partnerships, concessions, third-party investors, as well as innovative mechanisms, such as green bonds and insurance-based financing.