$1 Billion Adaptation Fund Closes, Country Resilience Rankings Revealed, RCOAST Maps Coastal Erosion in Outer Banks, and More

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Join Climate Proof, DSR & Partners, and a rich array of corporate adaptation professionals for Corporate Climate Adaptation on October 30/31.

You can take part in-person in Düsseldorf or online — where Climate Proof editor Louie Woodall will be moderating the virtual sessions.

Climate Fund Managers has closed its Climate Investor Two (CI2) fund at US$1.065bn, making it the largest climate adaptation infrastructure fund focused on emerging markets. 

The close includes US$190mn in new investor commitments and a €205mn (US$237mn) guarantee from the European Fund for Sustainable Development Plus program. CI2 targets water, waste, and ocean infrastructure across Africa, Asia, and Latin America, aiming to provide clean water and sanitation to 16.5 million people and restore more than 2 million hectares of ecosystems. Climate Fund Managers did not immediately respond to questions from Climate Proof on the source of the new investor commitments or the breakdown of the US$1.065bn between private and private capital.

The fund is structured as a blended finance vehicle, using public guarantees to incentivize and de-risk private investments. Backers include multilateral and development finance institutions, public banks, pension funds, and insurers. 

CI2 also marks the debut of a new “Bridge-to-Bond” financing mechanism, developed with South Africa-based Sanlam Alternative Investment. This sees Sanlam provide a loan to the CI2 portfolio, guaranteed by the European Commission, with the intention for it to be “bonded out” to fixed income investors within a few years. Andrew Johnston, CEO of Climate Fund Managers, said this innovation will open access to climate finance for “a much broader group of investors.”

Since its first close in 2021, CI2 has committed US$339mn to 25 projects, from desalination in Kenya and waste-to-energy in Thailand to a debt-for-nature swap protecting Ecuador’s Galápagos Islands.

Climate Fund Managers is backed by the Dutch development bank, FMO, and Sanlam InfraWorks of the Sanlam Group of South Africa. It was established in 2015.

The world’s first verified climate resilience bond is due to be issued by the Tokyo Metropolitan Government, following certification under the Climate Bond Initiative’s Resilience Criteria and Taxonomy. The bond will finance projects to protect the city from climate-related risks such as flooding, typhoons, and storm surges. These include upgrades to rivers, coastal defenses, and utility infrastructure. The Resilience Criteria and Taxonomy debuted last year, with the aim of accelerating investment flows into climate-proofing initiatives. (Climate Bonds Initiative)

Nineteen of the 25 World Bank executive directors signed a statement reaffirming the institution’s commitment to putting 45% of its annual financing to work on climate projects, in opposition to US calls for it to narrow its focus. The US, Russia, Kuwait, and Saudi Arabia all refused to sign the statement, while Japan and India abstained. The statement included a list of priorities for client countries that are not currently incorporated in the bank’s climate change plans, including scaling adaptation and resilience efforts. (Reuters)

The Development Bank of Latin America and the Caribbean (CAF) approved US$1.1bn in new financing for climate-resilient infrastructure and sustainable development across Brazil, Colombia, Uruguay, and Chile. Columbia is receiving US$500mn to revitalize its rail system and electrify public transport, Uruguay US$200mn for a new dam to safeguard water supply for 60% of the population amid worsening droughts, and Brazil US$150mn for climate-resilient urban modernization in Cabo de Santo Agostinho. (CAF)

The European Union has thrown its weight behind a new global climate finance framework ahead of COP30 in Belém, calling for at least US$300bn annually for developing countries by 2035 and backing efforts to unlock US$1.3trn per year from all public, private, and philanthropic sources. In conclusions approved by the bloc’s finance ministers last week, the EU also reaffirmed its commitment to doubling adaptation finance by 2025 and highlighted that EU institutions are the largest providers of public climate finance — particularly concessional and blended. (European Council)

Australia ranks second-worst in the world for extreme weather-related losses, the latest edition of the Insurance Catastrophe Resilience Report reveals. In 2025 alone, ex-Tropical Cyclone Alfred and two major floods racked up nearly A$2bn (US$1.3bn) in insured losses. The report also reveals that the heaviest burden rests on the country’s most vulnerable. Around 70% of households at highest flood risk sit below the national median income, and over a third are below the poverty line. In response to this looming social and fiscal crisis, the Insurance Council of Australia is urging a A$30bn (US$19.6bn) Flood Defense Fund, tighter planning laws, and a national building resilience overhaul. (Insurance Council of Australia)

The London School of Economics has launched Earth Capital Nexus (EarthCap), a research-led effort to integrate natural capital with financial decision-making. The move is aimed at correcting what it calls a multi-trillion dollar “blind spot” in the global economy. Spearheaded by Professor Nicola Ranger, EarthCap will develop new policy frameworks, analytics, and financial instruments to reveal and revalue the natural systems underpinning economic stability, like forests, mangroves and river basins. The initiative also plans to co-create new tools with investors, regulators, and banks to unlock nature and resilience finance. (LSE)

A new report by Recourse and Pakistani civil society groups claims that the International Monetary Fund (IMF) is failing to integrate climate risk into its core economic surveillance activities, despite its 2021 pledge to treat climate as “macro-critical.” The analysis of 60 countries’ Article IV consultations from 2022 to mid-2025 shows that while the Fund references national climate plans, in almost two-thirds of cases it promotes austerity measures without considering the impacts on climate investment. (Recourse)

Con Edison is awarding US$15mn in philanthropic grants to climate resilience, community cooling efforts, and sustainable energy across New York City and Westchester County. The funds will support clean energy job training for 1,800 people, preserve nearly 2,000 acres of green space, and advance neighborhood-led climate adaptation projects. Award recipients include Groundwork Hudson Valley’s Climate Safe Neighborhoods Initiative, which marshals residents in Southwest Yonkers to design and implement smart shade structures. (Con Edison)

While climate damages hit a towering US$1.4trn in 2024, most developed nations remain underprepared to weather intensifying climate shocks, according to new analysis from BloombergBNEF.

Its new Adaptation Preparedness Scorecard ranks 25 countries — including all G20 economies and key Southeast Asian states — on their national adaptation strategies. Canada and Singapore lead the pack on the strength of their climate resilience policies, climate risk assessments, and dedicated adaptation budgets.

On the flipside, Saudi Arabia, Russia, and Thailand make up the bottom three, having so far failed to conduct physical risk stress testing or engage in meaningful planning and adaptation exercises.

The US — which suffers the highest annual climate damages in financial terms according to Bloomberg data — stands in twelfth place. The scorecard shows that while state and local adaptation initiatives are often robust, weak federal coordination and the absence of a dedicated adaptation budget are dragging it down the rankings. High-exposure countries like Japan and Indonesia are — in contrast — making progress by implementing ecosystem-based projects that protect populations and infrastructure, among other efforts.

BloombergNEF’s scoring framework breaks resilience into four pillars: risk assessment, governance, resilience-building, and post-disaster recovery. It offers a blueprint for investors to evaluate systemic climate risk and highlights the investment case for adaptation as a risk mitigation strategy.

The eighth Adaptation Futures conference is taking place in Christchurch, New Zealand this week, where over 2,000 delegates — including government ministers, researchers, and community advocates — are gathering to discuss the latest in climate science and to learn about cutting-edge initiatives to harden communities and infrastructure against extreme weather shocks. Key themes include the sharing of Indigenous knowledge and community-led adaptation. The conference is co-hosted by the UN-backed World Adaptation Science Programme and University of Canterbury, Christchurch. (Adaptation Futures Conference)

The US National Flood Insurance Program (NFIP) is an ongoing hostage of the federal government shutdown that took effect on October 1. The scheme — which covers 95% of residential flood policies in the US — is unable to issue new policies or renew expiring ones until it is reauthorized by Congress. While lawmakers in both chambers have introduced bills to extend the program, these efforts have run aground amid broader disagreements over government funding. House Republicans have tied NFIP renewal to their proposed short-term spending bill, which Democrats have rejected multiple times. Meanwhile, Democrats have proposed funding bills that include an NFIP extension but contain other priorities Republicans oppose. As the standoff continues, homeowners are unable to renew flood policies and real estate transactions are being delayed across the country. (E&E News)

A major report by the UK’s Joint Intelligence Committee warning that climate change and ecosystem collapse pose a serious threat to national security has been delayed, according to the Guardian, with sources suggesting it may have been blocked by Number 10. The report allegedly highlights mounting risks to food security, economic stability, and global supply chains exacerbated by climate disruption. It also warns that climate-driven migration and political instability abroad could have direct impacts on the UK. (The Guardian)

The UK’s independent Climate Change Committee (CCC) has named two new members to its Adaptation Committee, strengthening its expertise ahead of the country’s next climate risk assessment. Dr Michael Keil, CEO of the Consumer Council for Water, and Ian Dickie, Director at Economics for the Environment Consultancy, will serve three-year terms from January 2026 to December 2028. Keil brings deep experience in water resilience and consumer advocacy, while Dickie adds decades of expertise in environmental economics and natural capital. Their appointments come as the committee prepares its independent assessment for the Fourth Climate Change Risk Assessment, slated for 2026. (UK Climate Change Committee)

New Zealand has launched its first major climate adaptation research initiative, a N$11.9mn (US$6.9mn), five-year program led by Earth Sciences New Zealand to bridge the gap between planning and real-world action. It aims to overcome socio-economic barriers that are slowing local responses to rising seas, stronger storms, and worsening droughts. (Earth Sciences New Zealand)

Amnesty International is pressing New Zealand to establish a dedicated humanitarian visa for Pacific Islanders displaced by climate change, citing rising sea levels and extreme weather that threaten to make countries like Tuvalu and Kiribati uninhabitable. In a report released Thursday, Amnesty said current immigration systems are not up to scratch and exclude vulnerable groups like the elderly and people with disabilities. (Amnesty International)

African nations should direct 80% of their climate resources toward adaptation rather than mitigation, former South African minister Valli Moosa argued at the Innovation for Cool Earth Forum in Tokyo last week. “We’ve got a lopsided emphasis,” Moosa told the conference. “Partly because the global community puts enormous pressure on African countries to think about renewable energy and mitigation and not to think about adaptation.” (Bloomberg)

Coastal resilience start-up RCOAST is shining a light on the vast extent of shoreline loss suffered in Buxton, North Carolina, where nine oceanfront homes recently collapsed into the Atlantic after a barrage of storms.

The company’s drone and LiDAR tech shows the average shoreline retreat to be 68 feet — with some areas losing as much as 141 feet of beach — while storm overwash has pushed sand nearly 300 feet inland. 

The company used 3D scanners and multispectral imaging to document the damage, creating an interactive map for residents that they can use when dealing with insurers. “Our goal is to map coastal change for communities and help them plan for a more resilient future,” said RCOAST Founder Christy Swann on LinkedIn. “We need to transition from reactive coastal management to proactive management. I believe we can do that [with] easy access to data, accessibility to the erosion rates and unique problems they are facing, and a library of solutions that work for their environment.”

The Outer Banks, where Buxton is located, has yet to recharge its beach since last year’s Hurricane Helene, leaving it especially vulnerable to further storms. Decades of erosion, averaging 10 to 15 feet per year, have been compounded by rising seas, which are roughly a foot higher today because of climate change.

Beyond collapsed homes, debris fields now stretch for miles, scattering insulation, lumber, and leaking septic tanks into the surf. Earlier this October, dozens of National Park Service employees and private contractors hauled away more than 140 truckloads of debris ahead of another storm system expected to bring high tides and further erosion.

The Catalyst Fund — a venture capital vehicle backing early-stage climate-tech startups across Africa — has secured a US$6mn investment from the International Finance Corporation. The fund targets pre-seed and seed investments in fintech for climate resilience and climate-smart essential services. Countries in focus include Nigeria, Kenya, and Egypt. (IFC)

Climate agritech company Pairwise has been named to this year’s list of 10 Climate Tech Companies to Watch by MIT Technology Review. The Durham, North Carolina-based company leverages CRISPR gene editing to make crops hardier for a warming world. Notable partnerships include those with Bayer, Corteva, the Gates Foundation, and Mars, with projects ranging from developing sturdier corn to creating disease-resistant cacao trees that are able to withstand drought and disease. (MIT Technology Review)

Global Tipping Points Report 2025 (Global Systems Institute, University of Exeter)

Financing climate adaptation: Mobilising investment at scale (OECD)

Climate-linked escalation of societally disastrous wildfires (Science)

Urban boundaries are an underexplored frontier for ecological restoration (Scientific Reports)

Climate hazard experience linked to increased climate risk perception worldwide (Environmental Research Letters)

Mainstreaming nature into country climate development reports: A preliminary assessment of opportunities and needs (CLEAN Helpdesk)

What role can food vouchers play in strengthening climate resilience? (Agence Française de Développement)

Thanks for reading!

Louie Woodall
Editor