Scaling adaptation finance in Southeast Asia

This report outlines the scale, urgency, and structural barriers surrounding adaptation finance in Southeast Asia, where climate‑related economic losses have averaged tens of billions of dollars annually and far exceed available funding. It explains why adaptation remains under‑resourced compared with mitigation, describes how fragmented projects, limited revenue models, and institutional capacity gaps constrain investment, and identifies who is affected — from national governments facing fiscal pressures to local communities exposed to escalating climate risks. Drawing on regional assessments and global evidence, the publication highlights where adaptation needs are most acute, particularly in agriculture, infrastructure, water systems, and biodiversity.

The report recommends coordinated public–private action to expand adaptation finance, including stable national budget allocations, stronger project preparation, and the use of blended finance to scale nature‑based solutions. It encourages governments to improve climate‑risk data, strengthen institutional capacity, and create credible, implementation‑ready pipelines, while urging investors to recognise adaptation as an opportunity for long‑term value creation rather than a cost. The report also points to innovative instruments — such as resilience bonds, sustainable finance taxonomies, and debt‑for‑nature or debt‑for‑resilience swaps — as viable pathways to mobilise domestic and international capital.