Article

Adaptation takes center stage at COP30: Exploring practical pathways to action

The challenge of financing and adapting to a changing climate was front and center at COP30 in Belém. As physical climate risks intensify across geographies, we invited stakeholders from the public and private sectors to share real-world adaptation challenges and explore solutions to address the deficit in our climate resilience.

The challenge of financing and adapting to a changing climate was front and center at COP30 in Belém. As physical climate risks intensify across geographies, we invited stakeholders from the public and private sectors to share real-world adaptation challenges and explore solutions to address the deficit in our climate resilience.

At each global COP meeting I have attended, the urgency to build climate resilience through adaptation has steadily risen on the agenda. At COP30, delegates agreed to tripling adaptation finance by 2035 — an essential step to address the gap between adaptation funding demand and available investment. But a critical question remains: how do we translate this commitment into real-world solutions that address climate risks and enhance resilience?

In partnership with TED Countdown House in Belém, Marsh hosted a dedicated event to explore practical, collaborative approaches to adaptation across sectors.

The importance of diverse adaptation strategies

While adaptation is not a new concept for businesses (according to our Climate Adaptation Survey, 78% of surveyed organizations are assessing their future climate risks), many companies initially focus on protecting their own assets — buildings, employees, and operations — and ensuring business continuity during emergencies. However, as climate-related risks become more apparent through tools like hazard modeling, businesses increasingly recognize that much of their exposure lies at the system level.

To support organizations in identifying both asset-level and system-level risks — and developing resilient solutions — the Marsh Adaptation Framework offers a holistic approach to understanding and preparing for future climate impacts. For instance, beyond the risk of extreme weather damaging business premises, organizations should consider system-level vulnerabilities such as dependence on energy infrastructure, supply-chain fragility, and resource depletion.

City-level collaboration: An important opportunity

System-level risks often manifest at the city level, where dependencies and vulnerabilities intersect. Given that cities generate 80% of global GDP, they represent a valuable opportunity for exploring system-level adaptation solutions. At Belém’s TED Countdown House, we brought together businesses and public-sector stakeholders to explore ways to unlock greater collaboration and accelerate climate resilience efforts.

Participants shared personal insights and experiences related to system-level risks, including the impacts of floods, droughts, heatwaves, and wildfires on supply chains and essential services, from water supplies to energy. They also highlighted concerns about political instability and community disempowerment.

Subsequent sessions revealed key challenges in implementing adaptation solutions. One key insight was the risk of systemic collapse if multiple system-level risks unfold in tandem. Participants emphasized the broad range of stakeholders involved — from local communities to corporations and public-sector leaders — and the need for coordinated action. Private-sector participants called for clear guidance and regulatory stability to confidently invest in adaptation, while public-sector participants stressed the importance of corporations and investors prioritizing people and communities alongside profits.

Interdependent risks require collaborative solutions

Both the public and private sectors agreed on the importance of data in informing decisions about investments in resilience, with payback timelines being a central concern. They also acknowledged the difficult balance between addressing immediate hazards and focusing on longer-term, chronic risks.

The workshop offered innovative ideas to incentivize collaboration, including the importance of effective storytelling to highlight future cost savings and promoting technological innovation. Finance remained a recurring theme, with companies emphasizing that investment decisions often hinge on the availability of subsidies, tax benefits, and insurance mechanisms tailored to resilience-building measures.

Developing innovative adaptation financing

COP30, billed as the “implementation COP”, underscored that beyond increasing financing, how funds are deployed is equally important. In the coming months, we will continue to build on the insights gained at Belém. While the climate resilience deficit remains a major challenge, the discussions revealed that public-private collaboration can be a decisive force in building a more resilient future.

Investing in urban resilience

Investors are increasingly partnering with cities to strengthen resilience against climate risks through innovative initiatives. A leading example is the Urban Infrastructure Insurance Facility (UIIF) project, which supports 10 cities across Latin America in managing climate-related threats by delivering tailored insurance solutions and facilitating access to financial resources for disaster recovery.

Led by ICLEI – Local Governments for Sustainability, a global network of over 2,500 local and regional governments committed to sustainable urban development and resilience, the UIIF project is financed by KfW Development Bank on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ).

The UIIF helps participating cities assess their unique risk profiles and develop customized insurance and disaster response strategies. This enables them to secure critical funding for rebuilding essential infrastructure and providing support to vulnerable communities in the aftermath of disasters.

Together, Marsh and Guy Carpenter applied their expertise in climate risk, disaster risk financing, and insurance to support the project. We offered advanced risk exposure modeling and created tailored insurance solutions suited to each city's specific needs, thereby strengthening urban resilience and financial readiness.

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