A framework for mobilizing private finance and tracking the delivery of adaptation benefits

The paper introduces a three-step framework—enabling environments, mobilization, and delivery of adaptation benefits—to analyze how the private sector can be engaged in climate adaptation. Testing the framework in Kenya and Rwanda reveals that while both countries have established broad policy and regulatory frameworks, actual mobilization of private finance for adaptation remains limited and difficult to track. The authors find that private investments often lack explicit adaptation labeling and that a lack of awareness among private actors, combined with weak enforcement of existing policies, hinders progress. The study highlights the risk of maladaptation and 'climate-washing' and recommends integrating adaptation criteria into environmental impact assessments (EIAs) to better monitor outcomes and prevent counterproductive investments.

• The proposed framework consists of three interacting building blocks: enabling environments, mobilization, and the delivery of finance for adaptation benefits, suggesting a causal relationship where the first leads to the subsequent stages.
• In Kenya and Rwanda, broad institutional and regulatory frameworks for adaptation exist, but the creation of an enabling environment is hindered by barriers such as weak institutional capacity and limited private sector involvement.
• Private sector awareness of climate risks and adaptation options is low in both Kenya and Rwanda, which acts as a significant barrier to investment.
• Direct mobilization of private finance for adaptation is limited and often lacks transparency; for example, in Rwanda, a rooftop rainwater harvesting project was viewed by the participating bank as corporate social responsibility rather than a bankable investment.
• Foreign Direct Investment (FDI) in Kenya and Rwanda does not prioritize adaptation-relevant sectors, focusing instead on ICT, financial services, and renewable energy.
• There is a critical lack of indicators and monitoring systems to measure actual adaptation benefits, making it nearly impossible to determine if private investments contribute to the UNFCCC US$100 billion climate finance target.
• The absence of adaptation criteria in mandatory environmental impact assessments (EIAs) in Kenya and Rwanda increases the risk of maladaptation and 'climate-washing'.
• Private sector adaptation investments often fail to reach the most vulnerable populations, such as subsistence farmers, as investors prefer products with immediate economic benefits like index insurance for wealthier farmers.

APA

Dzebo, A., & Pauw, P. (2019). A framework for mobilizing private finance and tracking the delivery of adaptation benefits. Stockholm Environment Institute. https://www.sei.org/wp-content/uploads/2019/09/a-framework-for-mobilizing-finance-and-tracking-the-delivery-of-adaptation-benefits.pdf

Chicago

Dzebo, Adis, and Pieter Pauw. A framework for mobilizing private finance and tracking the delivery of adaptation benefits. Stockholm Environment Institute, 2019. https://www.sei.org/wp-content/uploads/2019/09/a-framework-for-mobilizing-finance-and-tracking-the-delivery-of-adaptation-benefits.pdf.

Wikipedia

{{cite report |last1=Dzebo |first1=Adis |last2=Pauw |first2=Pieter |title=A framework for mobilizing private finance and tracking the delivery of adaptation benefits |publisher=Stockholm Environment Institute |date=September 2019 |url=https://www.sei.org/wp-content/uploads/2019/09/a-framework-for-mobilizing-finance-and-tracking-the-delivery-of-adaptation-benefits.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{dzebo2019framework, author = {Dzebo, Adis and Pauw, Pieter}, title = {{A framework for mobilizing private finance and tracking the delivery of adaptation benefits}}, institution = {Stockholm Environment Institute}, year = {2019}, month = sep, url = {https://www.sei.org/wp-content/uploads/2019/09/a-framework-for-mobilizing-finance-and-tracking-the-delivery-of-adaptation-benefits.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }