Despite a growing acknowledgement of the importance of philanthropy stepping up to combat climate change, relatively little spending is devoted to adaptation and resilience, and even less to initiatives in the Global South.

As deadly weather-related events become far too common across the world, climate change impacts are not evenly distributed, with many countries across Latin America, Africa, and Asia bearing the brunt despite contributing far less to greenhouse gas emissions. For some of these countries, climate change poses an existential threat. Entire communities in Pacific Island nations risk becoming uninhabitable due to rising sea levels, high temperatures and drought are devastating North African farms, and hurricanes in the Caribbean are wiping out infrastructure and tourism.

While the fight to address the root causes of climate change could not be more urgent, investment in resilience and adaptation is crucial to protect lives and decades of development gains. Funding also makes financial sense, with every dollar given to adaptation saving more down the line in recovery costs. A report from the Global Commission on Adaptation found that investing $1.8 trillion globally this decade in five specific areas could generate $7.1 trillion in net benefits. The areas include early warning systems, climate-resilient infrastructure, and building resilient water resources.

This year, ahead of New York Climate Action Week, ClimateWorks Foundation, with support from a coalition of global funders including the Rockefeller Foundation and Howden Foundation, launched a fund to support locally led adaptation and resilience projects. The fund’s first grants will focus on helping cities in South Asia, Southeast Asia, and sub-Saharan Africa build resilience to extreme heat.

In conversation with The Conduit, Jessica Hitt, Associate Director of the Adaptation & Resilience programme, explains why funding adaptation is an essential part of combating the climate crisis.

Why is funding adaptation in the Global South so important?

The communities hit hardest by climate change have contributed the least to the problem, yet they are driving some of the most powerful solutions.

Urban areas are highly vulnerable to climate risks and shocks such as heatwaves and flooding, while local governments often lack capacity and direct access to climate finance. Informal urban settlements house over a billion people worldwide and are often excluded from formal financing or social protection.

When local governments and grassroots groups lead on adaptation, solutions are more effective as they are rooted in local insight and trusted by communities.  Adaptation plans also strengthen national finances by protecting public budgets from climate risks and governments from expensive emergency responses.

Our Fund supports the growing international recognition that climate adaptation must be bold, people-centered, and locally led.

In the philanthropy world, how much funding has gone to climate resilience and adaptation?

We are beginning to track funding flows through our pilot Adaptation and Resilience landscape analysis, which we’ll release this fall. Our 2024 survey showed that funders are on track to provide over $650 million in annual funding to adaptation and resilience. Momentum is building in the field, and a diverse set of funders are interested in climate adaptation and resilience.

Yet, Climate Policy Initiative’s report found that only 1% of $831 billion in climate finance is directed to adaptation and resilience, and only a fraction of that reaches the communities most impacted by climate change.

Our data on climate giving by foundations shows that 60% of regional funding goes to the U.S. and Europe. While climate action is still a high priority in all regions, the Global South holds a huge opportunity for growing climate adaptation and supporting local leaders.

Why is this new fund important?

Adaptation is no longer a question. Climate adaptation is essential to safeguarding lives, protecting livelihoods, and securing economic stability.

Vulnerable communities frequently adapt out of necessity, yet these efforts are not often recognized or supported by governments. Philanthropy is unique in its role to connect climate solutions with public health, human rights, and economic resilience. Funders can invest early in adaptive systems to lay the groundwork for sustainable growth and unlock larger flows of public and private capital.

Together with four major foundations, we support coordinated climate funding that protects those most affected by climate change, starting with extreme heat in climate-vulnerable regions.

We invest in people-centered solutions that reduce risk and strengthen local resilience. We’re helping local communities access the funding and tools they need to absorb shocks and build long-term economic resilience.

Have you seen an uptick in funding for climate over the past few years?

We project that climate giving by foundations will exceed $5 billion in 2024 for the first time ever. Over the past decade, we’ve seen a five-fold increase in climate giving. This commitment is a clear sign that funders are as a group holding firm to funding climate action, even as the global context becomes more complex.

Our latest data shows that climate funders are recalibrating, not retreating. They’re doubling down on local leadership to advance climate action that continues to deliver meaningful benefits for people, economies, and the planet.