Governments play a crucial role in building a climate-resilient future, especially through how they raise and spend public money. Fiscal policy is a powerful tool to drive climate adaptation, particularly through inclusive, sustainable infrastructure.
This report identifies five priority areas for action: aligning debt strategies with adaptation goals; targeting public spending for resilience; using blended finance to attract private capital; integrating nature into budgeting; and improving climate risk data.
It offers 12 practical recommendations to help countries mobilize finance more effectively, including creating adaptation taxonomies, tracking fiscal risks and strengthening institutional frameworks.