At a coastal port in Chittagong, Bangladesh, something remarkable is underway. With support from a US$850 million (£620 million) investment from the World Bank, engineers are building flood-resistant infrastructure that can survive rising seas and stronger storms. A new 3.7-mile-long barrier will protect people, homes, and trade in one of the world’s most climate-vulnerable regions.

Projects like this do more than save lives. They show why investing in climate
adaptation is one of the smartest financial opportunities of our time. There are plenty of global conferences where leaders discuss climate change and make big
promises. Yet, less than 5.5% of global climate finance actually reaches the countries most at risk. That is not just a failure of fairness. It is a missed chance for real impact.

As the world gathers in Seville, Spain for the fourth international meeting on development financing, the focus must go beyond pledges and shift toward practical, on-the-ground investment in resilience.

At the previous UN climate finance meeting, also held in Seville, leaders focused
on fixing how public money flows through global institutions. But just as important is the need to invest in climate adaptation. This means helping people live with the changes already happening, including more floods, longer droughts, rising seas and intense heat.

While mitigation is about stopping climate change getting worse (by switching to clean energy or protecting forests that absorb carbon, for example), adaptation is about coping with the effects we can no longer avoid. It includes building stronger homes, growing more resilient crops, and improving hospitals and schools so they can keep working during extreme weather. Both approaches are necessary, but adaptation often gets less attention. And less money.

Private investors have already committed large sums to clean energy projects. But they have done much less to support communities on the frontlines of climate change. Many of these countries struggle with limited budgets, complex rules for accessing finance, and a lack of support to develop viable projects. So promising ideas often go unfunded.

That is beginning to change. New tools are helping investors take on less risk and back more projects. These include low-interest loans, partnerships between public and private institutions, and guarantees that reduce the risk of failure.

The Green Climate Fund is the largest source of dedicated climate finance for developing countries. By the end of 2023, it had approved US$13.5 billion in funding, rising to US$51.9 billion when co-financing is included. This money helps unlock adaptation efforts that were previously out of reach.

We can already see progress. In Kenya and Ethiopia, farmers are using drought-resistant seeds to grow more food in changing conditions. In the Caribbean, solar energy is powering schools and clinics in remote communities. And in Bangladesh, the new port infrastructure in Chittagong is protecting a vital economic hub while boosting local businesses.

In coastal areas, restoring mangrove forests can reduce the force of incoming storms, protect biodiversity and support fisheries. The Pollination Group, a climate investment firm, is helping turn “nature-based solutions” like these into projects that attract private finance.

In his previous role as the Prince of Wales, King Charles III launched the Natural Capital Investment Alliance, an initiative that aims to mobilise US$10 billion for projects that restore and protect nature while offering solid financial returns. The alliance also helps investors better understand these kinds of opportunities by creating clearer guidance and standards. This supports the Terra Carta, a charter created by King Charles III that offers a roadmap for businesses to align with the needs of both people and the planet by 2030.

Investors who step into these emerging spaces gain more than financial returns. They build long-term relationships with governments and local communities. They help shape future policy. And they create lasting foundations for growth in places that are ready to lead if given the chance.

Adaptation projects also bring real benefits to people. They improve access to clean water, protect food supplies, create jobs, strengthen education and support healthcare systems. For families already facing climate disruption, these changes are not just improvements. They are lifelines.

By creating stable and welcoming environments for responsible investment, governments can accelerate this shift. By simplifying how money is accessed, international institutions can make it easier for good ideas to become funded projects. Philanthropic groups and development agencies can help build local skills and prepare projects for funding. Private investors can bring capital, innovation and experience.

Investing in climate adaptation is no longer just a moral issue. It is a smart, scalable and necessary response to a changing world.

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