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November 5, 2025

Climate Change Adaptation Financing: From Tracked Flows to Untapped Potential

This Center for Sustainability Studies at Fundação Getulio Vargas technical paper, produced in partnership with Morphosis and Instituto Itaúsa, seeks to advance understanding of how climate adaptation finance, particularly from private sources, can be scaled to meet the growing resilience needs of a climate-impacted world

Building on a diverse and expanding body of work from academia, international organisations, consultancies, and financial institutions, it reflects the increasing urgency and complexity of the adaptation finance agenda. And seeks to bridge a critical gap in the literature: the lack of a comprehensive and integrated overview of adaptation finance flows, with a particular emphasis on private sector engagement, investment mechanisms, and definitional challenges.

The report offers a diagnostic exploration of the global landscape of adaptation finance, combining bottom-up tracking of tagged financial flows with top-down macroeconomic modeling of climate-related damages. It also identifies key actors, instruments, and barriers in the ecosystem of private adaptation finance, and proposes initial recommendations for improving tracking, mobilisation, and policy alignment.