Adaptation

Overview

As underlined in the Intergovernmental Panel on Climate Change (IPCC)’s sixth Assessment Report, our planet is already approaching a level of warming in which climate related disasters such as droughts, extreme storms, heat waves and rising sea levels are increasingly harder to manage. The risks from climate change will remain even if mitigation actions are taken to reduce greenhouse gas emissions. Hence, climate adaptation is critical and its financing is a strategic issue.  

The NGFS set up the Task Force on Adaptation in 2024, as a follow-up of the Blended Finance Initiative in 2023, which laid the first NGFS works on the topic. The objective of the Adaptation Task Force is to explore the interlinkages and relationships amongst the topics of adaptation finance, insurance protection gaps and the prudential risks that adaptation (or the lack thereof) could pose to the financial sector.  

It has a multi-phase work program:

• In the first phase, the TF published  a Conceptual Note (launched at COP 29) on Adaptation which provides a reasoning on the relevance of adaptation to central banks and supervisors, and contains foundational definitions, as well as key considerations for central banks and supervisors;
• It now aims to delve deeper into key areas of interest identified in the Conceptual Note.

Chairs’ institutions

The Task Force Adaptation is co-chaired by Ms Shelagh Kahonda (National Bank of Rwanda) and Mr Sean Carmody (Australian Prudential Regulation Authority).

Recent publications