Investments in disaster risk management also deliver high returns — nearly 36% on average — by safeguarding lives and infrastructure while minimizing economic disruption. Kenya’s project aimed to address these issues by offering cash transfers and nutritional counseling during droughts, or by deploying community health workers to remote areas affected by climate hazards. It also looked to expand access to healthcare services more broadly, which in turn would boost productivity and learning outcomes among poor and vulnerable households.
The path to reforming the climate finance architecture will not be linear, but the Compass points a clear path to navigating it. However, they face growing risks from rising sea levels, frequent natural hazards, and shifting trade dynamics, requiring strategic investment. With maritime trade set to double by 2050, ports must expand and enhance resilientinvestment.org efficiency to manage increased volumes and mitigate climate-related risks to both infrastructure and economic stability. Uniting global investors, private sector leaders, visionary changemakers, and resilient cities to drive Ukraine’s recovery, scale social impact, and foster inclusive growth — strengthening city-to-city cooperation as a foundation for a more united and resilient Europe.
Disaster risk management
- A new initiative will better equip highways and transportation professionals to determine their priorities and actions on climate change, says Mott MacDonald transport and mobility solutions project director, Annette Smith.
- However, investors, lenders, insurers and ratings agencies need this information to make informed decisions.
- For more than 30 years, his research and client work has focused on helping established organizations respond effectively and strategically to disruption and change.
- Examples include reinforcing bridges and highways to withstand more-intense storms and transitioning to drought-resilient agricultural practices in the face of climate-induced water stress.
He is also a Senior Research Fellow at the German Institute of Development and Sustainability (IDOS), Visiting Professor at the LSE, and a Honorary Professor of Economics at the University of Leipzig. He has taught internationally and has held advisory roles for governments, central banks, international organisations and development agencies on matters of macroeconomic policy, sustainable finance and development. Ulrich has a leading role in numerous international initiatives to promote sustainable macroeconomics and sustainable finance, for example as the academic director of the University Network for Strengthening Macrofinancial Resilience to Climate and Environmental Change. Collaborating for Climate Action was created to fund high-impact, multi-stakeholder projects that create equitable climate action solutions over the next five years.
Take, for instance, our multiyear modernization project to refurbish both tubes of the Tuscarora Mountain Tunnel—a massive undertaking with a US$110 million investment and a 30-year lifespan. This project, which began in 2019, not only presented typical civil engineering challenges but also introduced a myriad of cybersecurity risks linked to the intricate network of connected devices within the tunnel. This webinar is organised in collaboration with the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) global project on Policy Advice for Climate-Resilient Economic Development (CRED). The EIB is also signing a €16.5 million grant from the German government with the Ministry for Development of Communities and Territories of Ukraine to promote renewable energy. The grant comes through the EIB’s International Climate Initiative Fund and is part of the Ukraine Energy Rescue Plan announced by the EIB in October 2024.
Designed to enhance the financial valuation of investments, instead of minimising losses, PCRAM uses new methodology that gives infrastructure owners and operators the means to evaluate physical climate risks to infrastructure and analyse their long-term impact on asset performance. His capability ensures climate risk assessment is integral to adapting infrastructure assets – from asset design and through the entire life cycle of the project – leading to significant reductions in the cost of future climate adaptation measures and improvement in the quality of revenue streams. Infrastructure owners and operators have an increasingly good understanding of their role in decarbonisation to limit global temperature increases – and many have plans in place to drive down their carbon emissions. Most asset owners do not integrate physical climate change risks into asset planning and development, which is crucial if we are to embed climate resilience in our infrastructure to protect the communities which depend on it. Without identifying and quantifying such risks over the long term, there is also a potential value dislocation in infrastructure assets which could have very significant implications for the financial industry, governments and ultimately the users of such assets.
Asset owners should assess how external managers’ approaches to climate adaptation and resilience align with their own approach during due diligence and as part of ongoing monitoring. Looks at the scenarios, methods and data the financial sector needs to assess the physical impact of climate change on the economy and identifies finance and insurance solutions. Using influence (for example, through board seats and management teams) with investments to build understanding and action on adaptation and resilience as appropriate. The Climate Resilience Investment Framework (CRIF) 1.0 is the first of its kind, an investor-specific and comprehensive resource to help develop individual climate adaptation and resilience plans.
We’re Not Adapting to Climate Change Fast Enough. Behavioral Science Could Help.
As such, any climate adaptation and resilience commitments in the climate policy should be built into the investment strategy. Evidence is growing of the impact of climate change on asset values and long-term portfolio performance. The GI Hub is also intended to continue CCRI’s Systemic Resilience Metrics program, which aims to demonstrate the positive impact that integrating physical climate risks in decisionmaking should have for key sovereign quality metrics. The ADS workstream includes 34 private and public sector organisations, collaborating to deliver outcomes in engineering, revenue impact, insurability, cost of capital and asset valuation. CCRI has also achieved impressive cross-collaboration between industries where engineers, climate data providers, credit rating agencies, asset owners and asset managers come together to bring their own views and intellectual property into discussions to advance CCRI outcomes.
IIGCC
The EIB Group has been supporting Ukraine’s resilience, economy and efforts to rebuild since the very first day of Russia’s full-scale invasion. In 2024, we supported projects aimed at securing Ukraine’s energy supply, repairing critical infrastructure that has been damaged, and ensuring that essential services continue to be delivered across the country. This brings the total amount of aid we have disbursed since the start of the war to over €2.2 billion. This funding has played a crucial role in ensuring that vital services continue to be delivered to people in Ukraine. For example, this year we inaugurated the water supply facility in Bucha that was rebuilt, and which provides clean water to residents.
To create meaningful research outcomes, CCRI worked with a diverse pool of infrastructure assets representing different classes, geographies and climate hazards. A requirement for full access to engineering studies and financial data has led to confidentiality concerns of case study data providers. To mitigate such concerns, the initiative developed a MOU signed by all participants specifying how data can be used and the legal terms for breach of confidentiality. Piyush Pandey is a managing director at Deloitte’s Risk and Financial Advisory practice and Smart Cities Cybersecurity leader. Discover the pivotal role of ports in global trade and the urgent need for strategic investment to mitigate climate risks. The grant will help integrate renewable energy systems into public buildings undergoing renovation works under EIB municipal loans.
Aims to develop solutions for investors to integrate physical risk and resilience considerations into portfolio management and drive more investment into adaptation solutions. For investment managers, the strategy will largely be executed through integrating climate adaptation and resilience factors into the investment process and through their post-investment stewardship and value creation activities, covered in the following sections. Government efforts to address climate risk have also to date focused on mitigation in the wake of the 2015 Paris Agreement. The Agreement’s objective to limit the increase in the global average temperature to well below 2°C above pre-industrial levels also advocated a 1.5°C target due to significantly higher risk above that level. This guide introduces the topics of adaptation and resilience and how investors can integrate them into investment decisions, stewardship and disclosure practices. The Coalition said on its launch that it is vital for society to develop new sources of data and analytical tools that enable it to better understand the risks posed by climate change to society and the wider economy.
Central to this is CCRI’s commitment to the development and testing of solutions that address a recognised mispricing of physical climate risk in investment decision making and asset valuation processes. It takes a bottom-up, component-based risk assessment approach that links climate projections, engineering and asset management with infrastructure financial models. The methodology can be applied to any physical asset or portfolio of assets, for any set of climate hazards. It is designed to enable owners and investors alike to develop their level of maturity in managing climate risks over time. The methodology recognises that climate science is improving all the time, while localised climate impacts and the use and condition of assets can change over time.
Our research challenges the mindset that adaptation is a financial burden, pulling limited funds from other priorities. It proves that it is often much more profitable to adapt than not to do so — and that good adaptation is, in fact, good development. Adaptation returns in the agriculture and forestry sector average over 29%, largely driven by developmental gains like higher yields and productivity, as well as environmental benefits. Moreover, many of the benefits expected from these investments were neither monetized nor included in the projected returns because they are difficult to model and quantify. Researchers found that only 8% of investment appraisals estimated the full monetized values of these dividends — suggesting that the $1.4 trillion and the average rate of return are likely substantial underestimates. Cumulatively, the investments we analyzed cost over $133 billion and are expected to generate $1.4 trillion in benefits over 10 years.
Although adaptation investments are primarily designed to avoid climate-related losses, their economic, social and environmental benefits accrue even when climate disasters don’t strike. In fact, over 65% of the monetized benefits in our study were unrelated to expected climate shocks — from job creation and productivity gains to healthier communities and environments. These may support investor efforts to enhance industry awareness and practice on adaptation and resilience, as well as help to develop policy, regulation and standard-setting on the issue.
“The conditions for success are ripe, the coalition will be able to harness a unique combination of the rapid advancement of climate risk analytics coupled with ambitious regulatory and investor-led initiatives. In parallel, CCRI’s exhibition Art + Resilience, developed in partnership with the COP26 Presidency, combines art, data and technology to deliver a powerful and timely visual message about climate risk and resilience. The exhibition includes a custom commissioned data sculpture Machine Hallucination – Nature Studies by new media artist Refik Anadol and an interactive augmented reality art ‘trail’. The exhibition will be at The Resilience Hub, Pavilion 70 and other partner pavilions in the blue zone throughout COP26.
We also opened five new schools in Vinnytsia, Dnipropetrovsk, and Ternopil Oblasts, helped build a department for children’s infectious diseases at a hospital in Zhytomyr Oblast, and significantly improved sanitation through the upgraded sewerage collector in Vinnytsia Oblast. Furthermore, our investments have helped modernise street lighting in Dnipro, benefitted the reclamation of the Hrybovychi landfill in Lviv, and helped to upgrade water infrastructure in Mykolaiv. We have also strengthened Ukraine’s transport networks to ensure resilient and sustainable mobility for businesses and residents. With our support, cities such as Lviv, Kyiv, Mykolaiv, Ivano-Frankivsk, Odesa, and Sumy have purchased new buses, trolleybuses, and trams. In addition, we have funded the reconstruction of the M01 Kyiv-Chernihiv-Novi Yarylovychi section of road that had been damaged in the war.
