The effects of climate change are already being felt in communities across the world and throughout the global economy. Climate-driven events have dominated headlines in recent months as increasingly frequent and extreme weather events kill hundreds of thousands of people every year. The combined effects of climate change and the degradation of nature are far-reaching, with the global economy set to face an estimated 19% GDP reduction over the next quarter-century due to climate change, according to a recent Nature study.

But even as these risks grow, climate adaptation and resilience remain among the most under-resourced problems the world faces today. The United Nations estimates that it will take an additional $187-359 billion per year for the world to adapt to a changing climate.

Of course, climate commitments must be balanced with people’s financial needs and governments’ fiscal agendas. In the current economic environment, that can force governments to scale back funding on climate solutions. Many regions and countries don’t have a choice, however – their people and economies are already being severely affected by climate change.

For instance, in 2016, a toxic microalgae bloom caused by warming waters devastated Chile’s salmon aquaculture industry, killing 25 million fish and shutting down both industrial and artisanal fisheries. Thousands of people lost their jobs, triggering widespread protests and economic disruption.

In 2019, Chennai, India faced a severe water crisis as decades of urban growth, reduced water sources and rising temperatures caused groundwater and reservoirs to dry up. Much of the city was left without water, sparking mass protests and highlighting the costs of failing to adapt to climate change.

Environmental changes have also contributed to conflict in Sudan, where more than 11 million people have been displaced – many now live in camps that are increasingly vulnerable to weather extremes. This region is expected to be among the worst affected by climate change, while the number of dangerous heat days per year experienced by most refugee camps and settlements around the world is projected to double by 2050.

For countries like these, private sector investment is crucial to building climate resilience.

In Africa, climate investment flows must quadruple annually between now and 2030 if the continent is to generate enough funding to meets its Nationally Determined Contributions under the Paris Agreement, according to the Climate Policy Initiative. While annual climate finance to Africa increased by 48% between 2019 and 2022, passing $50 billion for the first time in 2022 – this only covered 18% of Africa’s annual mitigation needs and 20% of its adaptation needs.

Traditionally, the bulk of the investment in climate solutions has come from the public sector and so addressing this investment gap will require significant public-private sector collaboration. Bridging the gap with scalable solutions that encourage more private market involvement will better equip the African continent and its growing population to manage the impacts of climate change.

Climate change in Africa represents a $3 trillion investment opportunity by 2030, according to the African Development Bank. And while it expects 75% of that funding to come from the private sector, these investments must be channelled into the right projects and solutions. This will ensure African countries can adapt to and mitigate the impacts of climate change, while also providing returns for private sector investors.

A new platform to grow private investment in climate adaptation efforts in Africa was announced at the World Economic Forum’s Annual Meeting 2025 in Davos. The initiative is the result of a partnership between the Global Center on Adaptation and the Forum, designed to unlock, guide and scale private-sector investments to strengthen climate resilience and adaptation efforts across the continent.

While a formal launch of the platform is planned for this spring, it has already secured a $1 billion commitment from CRDB Bank Group. This commitment is part of the Group’s partnership with the Global Center on Adaptation through the Africa Adaptation Acceleration Program (AAAP).

The platform aims to guide at least $5 billion in private investments over the next year, with a focus on developing and deploying commercial solutions for managing the negative effects of climate change in Africa.

“The need to adapt to a changing climate has never been more urgent, especially in regions that rely on climate-sensitive sectors like agriculture or have limited adaptation capacity,” said Professor Patrick V. Verkooijen, President and CEO of the Global Center on Adaptation. “By guiding an initial $5 billion into business-led solutions, we herald a new era of collaborative action—one that prioritizes effective, inclusive and sustainable solutions for African nations and, ultimately, for our collective global future.”

Indeed, the impact of greater public-private collaboration on climate resilience will be felt by communities and businesses across Africa.

Climate investment presents real opportunities to protect lives from the effects of extreme weather and climate-related risks. Livelihoods will also benefit from a model for building climate resilience while fostering innovation and sustainable growth through partnership-driven investment.

“Risks from extreme weather are growing. The new platform for private investment in climate adaptation across Africa seeks to support communities and ensure business continuity by enabling businesses and governments to co-invest in adaptation, resilience and mitigation solutions ” said Gim Huay Neo, Managing Director of the Centre for Nature and Climate at the World Economic Forum.

By 2050, one out of every three people globally aged between 15 and 34 years old will be African. There is a significant opportunity for this youthful population to benefit from greater private sector investment in climate solutions. This will support Africa’s entrepreneurs and provide upskilling and reskilling opportunities for its working-age people.

This new benchmark for collaboration will help to build Africa’s climate-resilient economies so that they can not only adapt to climate change, but thrive by capitalising on the continent’s emerging opportunities in this area.

https://www.weforum.org/stories/2025/02/1-billion-commitment-to-fund-climate-adaptation/