Climate mitigation involves preventing the harmful effects of climate change by reducing greenhouse gas emissions (GHG) into the atmosphere. To prevent or minimize the negative effects of climate change, emissions from factories, power plants, transportation, and more need to be reduced. Mitigation is achievable through approaches like the adoption of renewable energy or leveraging low-carbon solutions.
Adaptation revolves around analyzing data and anticipating the negative effects of climate change to guide solutions that will prevent or minimize the negative impacts. It aims to adjust systems, infrastructure, and practices to account for current and future negative effects of climate change. This can involve building infrastructure that protects against rising sea levels or implementing agricultural practices that enhance food security in the future.
Private and public entities can conduct local, national, or cross-national financing in order to support climate mitigation and adaptation. Regarding investments, it is often discussed whether it is more important to finance solutions directed towards mitigation or adaptation. Both are essential in the fight against climate change as they aim to take on different roles while still addressing similar challenges. Financial investments are crucial to support the adoption of renewable energy sources that reduce greenhouse gas emissions. They can also help island nations like Tuvalu and Kiribati, which face the risk of being fully submerged due to rising sea levels.
According to Climate Policy Initiative’s report “Global Landscape of Climate Finance 2025”, climate financing grew to a staggering $1.9 trillion in 2023. While mitigation financing more than doubled between 2018 and 2023, growing from $757 billion to $1.78 trillion, adaptation financing was estimated at $65 billion in 2023.
Why does climate mitigation seem to attract more investors? The challenges of anticipating future negative effects of climate change may be one answer. The report also indicates that delays in current mitigation finance may increase the future needs of adaptation financing.
The disparity between mitigation and adaptation financing highlights a deeper challenge: balancing investments that reduce greenhouse gas emissions and deliver long-term benefits with those that address immediate climate risks. This means deciding whether to prioritize solutions for future prevention or adjusting systems and infrastructure to cope with escalating impacts today.
Sources
https://unfccc.int/topics/introduction-to-climate-finance
https://www.climatepolicyinitiative.org/publication/global-landscape-of-climate-finance-2025/
https://earth.org/data_visualization/sea-level-rise-by-2100-kiribati/
