ABSTRACT
The problem with climate finance is that most of the funds are for GHG emissions reduction and thereby to mitigate climate change. For this, the underlying internal rates of return (IRRs) are expected to be sufficiently positive. Global capital markets will respond to such mitigation opportunities on their own. What capital markets are unwilling to finance is adaptation to climate change and to building resilience in face of it. These measures involve long-term, uncertain returns, dogged by problems of organising collective action.
This chapter focuses on adaptation and resilience (A&R). It delineates A&R interventions: strengthening societal and institutional capacity for A&R efforts; strengthening individuals’, households’ and livelihood enterprises’ capacity for A&R; regeneration of water commons; regeneration of forest commons and the regeneration of land commons
The chapter argues that A&R measures can be financed through carbon dioxide sequestration credits and GHG emission reduction credits resulting from A&R efforts. To generate billions of USD worth of aggregated microcredits for sequestration or emission reductions (AMSERs), the first investment has to be in social capital – organising people into cohesive climate action groups. The lead will have to be taken by civil society institutions to organise people effectively to address the adverse effects of climate change on their health and livelihoods. The chapter explains this process, necessary investment and potential benefits.
