At COP30, a coalition of development finance institutions (DFIs) and investors intend to step up collaboration to mobilise private finance and investment towards climate adaptation and resilience (A&R). This responds to the increasing urgency for addressing climate risk and pursuing A&R opportunities in support of countries resilient development pathways. It demonstrates how DFIs and investors are working to align finance to the goals of the Paris Agreement, including the Global Goal on Adaptation and the Baku-to-Belem Roadmap.   

Akin to the gender lens investing 2X Challenge, DFIs are working towards an Investors Resilience Challenge for scaling private investment for A&R results. The Investors Resilience Challenge aims to mobilise more private capital for A&R through two paths:

• Increasing the resilience of assets, companies, and portfolios (‘Resilience of investments’) by investing in, advising, or influencing the resilience of an investment or asset thereby managing and reducing vulnerability to physical climate risks, addressing the risk side of A&R.

• Investing more in assets, companies and portfolios (‘Resilience through investments’) that deliver A&R benefits to communities, customers and systems, capturing the opportunity side of A&R.

DFIs and investors will continue to collaborate to promote common good practice for A&R investing and strengthen the bridge between DFIs and commercial investors, increasing transparency of approaches and building coherence in how these are applied by DFIs and commercial investors to further mobilise capital for A&R results in developing and emerging economies. 

Through the Adaptation and Resilience Investors Collaborative (ARIC), DFIs have developed the ARIC Resilience Framework as guidelines that demonstrate how to align investing for climate A&R under the Investors Resilience Challenge. This framework builds on existing tools and the common MDB-IDFC [1] principles for climate finance used by DFIs as well as frameworks and methodologies used by the wider investment community including IIGCC's [2] CRIF [3] and PCRAM 2.0 [4].

Today ARIC is launching the Investors Resilience Challenge and the ARIC Resilience Framework for public consultation, with the aim of fostering collaboration to develop an industry standard on A&R finance practices. Further progress towards this will be reported at COP31. 

This collaboration signals growing momentum among DFIs and investors to build more resilient portfolios, partner with the wider private sector to scale solutions, and demonstrate climate resilience impact for people, planet, and economies.

[1] Multilateral Development Bank-International Development Finance Club

[2] Institutional Investors Group on Climate Change

[3] Climate Resilience Investment Framework

[4] Physical Climate Risk Appraisal Methodology