Will private finance support climate change adaptation in developing countries?

This working paper explores what historical patterns of investment reveal about the potential for the private sector to play a significant role in raising and delivering climate finance, specifically in the context of the adaptation needs of developing countries.

The author finds that private-sector finance is unevenly distributed among countries and among sectors, and it often does not match developing countries' most pressing needs. Also important is to differentiate between different financial flows - foreign direct investment equity vs. portfolio equity, for example, and equity vs. lending - and more closely scrutinise both financial flows and outcomes.