ICC Report: Unlocking Private Sector Investment for Climate Adaptation

Climate change is no longer a distant risk — it is already reshaping economies and societies worldwide. Extreme weather events caused over US$2 trillion in economic losses between 2014 and 2023, directly affecting 1.6 billion people. Damages are escalating rapidly, with US$451 billion in losses recorded in just 2022–2023.

Despite this urgent need, adaptation finance lags far behind mitigation. In 2022, global mitigation finance reached US$1.3 trillion, while adaptation attracted only US$76 billion — and just 8% came from the private sector. Developing countries are particularly vulnerable: small island and least developed states paid over twice as much in debt service (US$59bn) as they received in climate finance (US$28bn).

To address this gap, the International Chamber of Commerce (ICC) commissioned Oxera to analyse how the private sector’s role in climate adaptation can be scaled up. The report highlights that public finance alone cannot meet the scale of the challenge. Unlocking private capital is essential to drive the innovation and investment needed to build resilience at speed and scale.

Key recommendations

The report sets out three strategic priorities for governments, regulators and financial institutions:

1. Strengthen climate risk information and transparency

   • Improve access to high-quality, open climate risk data.

   • Mandate proportionate disclosure of physical climate risks across operations and supply chains.

   • Standardise adaptation metrics and taxonomies to make resilience measurable and investable.

2. Establish enabling institutions and regulatory incentives

   • Embed business participation in National Adaptation Plans.

   • Create sandboxes and procurement frameworks that reward climate resilience.

   • Adjust capital requirements to reflect the benefits of resilient investments.

3. Scale adaptation finance with innovative instruments

   • Expand blended finance, resilience bonds and insurance-linked products.

   • Develop adaptation bonds tied to avoided losses or service delivery outcomes.

   • Leverage insurers’ data and expertise to guide investment and maintain coverage in high-risk areas.

ICC at COP30

As the official voice of business in the UN climate negotiations (UNFCCC), ICC will use this report to advocate for a stronger role of the private sector in climate adaptation at COP30 in Belém, Brazil. With adaptation expected to be a central theme of the talks, ICC’s recommendations aim to shape an actionable policy agenda that enables businesses to be true partners in building global climate resilience.

Read the full report

Read the summary