The financial case and how to access the opportunity
This report — produced jointly by IFC, AXA Climate, and Scientific Climate Ratings — makes a compelling business case for embedding adaption and resilience (A&R) into infrastructure development and asset management with a focus on private operators and investors.
Natural hazards cost low- and middle-income countries approximately $390 billion annually — equivalent to 1–2 percent of GDP. Without action, such climate risks could result in 43 million lost jobs across 49 countries by 2050. Drawing on detailed case studies across three sectors — transmission and distribution, water supply and sanitation, and roads—the report demonstrates that targeted A&R measures protect asset value, generate high benefit-cost ratios and strong internal rates of return.
The report also identifies gaps in A&R investments and outlines a range of financial mechanisms that can be deployed to mobilize private capital, with actionable recommendations for governments, infrastructure operators, and financiers.
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