Masterclass on Climate Adaptation Finance

Adaptation Need

Across Africa, financial institutions are underprepared to assess and respond to the growing threats of climate change. Despite increasing exposure to extreme weather events and long-term climate stressors, adaptation finance remains largely driven by the public sector, with limited private sector involvement. Barriers such as high perceived risk, poor climate data, and uncertainty around financial returns limit private sector engagement. Many FIs lack the capacity to assess sector-specific climate risks and structure bankable projects, making adaptation seem costly and complex. Without clear insights into the financial implications of climate risks, and expected benefits of resilience-aligned investments, FIs are unable to build credible adaptation investment pipelines or price risk appropriately. 

GCA’s Added Value

The CAF Masterclass is designed to introduce adaptation finance as not only a matter of managing risk, but also a strategic imperative for protecting portfolios, capturing new market opportunities, and sustaining long-term value creation in an increasingly volatile world. The training equips FIs with the tools, frameworks, and investment logic needed to make adaptation finance both practical and profitable. The masterclasses will reference the Body of Knowledge (BoK) that translates complex climate science into actionable financial strategies. Delivered through structured modules, a comprehensive handbook, online tools, and in-person training, the Masterclass equips FIs to identify material climate risks, assess adaptation investment opportunities, and navigate financing instruments. The Masterclass is co-developed through extensive engagement (Figure 1) with FIs, DFIs, and MDBs (Component 4). The content is tailored to the operational realities of FIs and their staff, with a focus on practical application. Delivery will include a conceptually grounded handbook with applied case studies (Component 1), interactive online modules (Component 2), and in-person sessions for selected FIs (Component 3).