Climate change adaptation has become one of the most pressing global issues of our time, and its varied manifestations reflect the complex dynamics at play across different regions. From Africa's struggles for financial support to New Zealand's proactive frameworks, the paths taken to mitigate climate impacts reveal the multifaceted nature of this crisis.
Africa, often seen as one of the regions most vulnerable to the impacts of climate change, has faced devastating challenges without adequate support. Although wealthier nations pledged to mobilize $100 billion annually to help developing countries combat climate-related issues, these commitments have often fallen short. A 2023 report by Brookings highlights Africa's dire financial needs, estimating it requires approximately $580 billion for adaptation efforts between 2020 and 2030. Yet, the continent received just $29.5 billion on average between 2019 and 2020, with only $11.4 billion earmarked for adaptation purposes. To put this disparity in perspective, Africa's self-identified climate action targets, known as Nationally Determined Contributions (NDCs), call for staggering investments of $2.8 trillion over the same period, which amounts to more than 93% of Africa's total gross domestic product (GDP).
The impact of climate change is not merely statistical; for millions of people, it is a daily reality. Communities across the continent are grappling with severe droughts, rising sea levels, and extreme weather events—all of which are compounded by insufficient financial resources and institutional capacities to manage these changes. One notable voice, Kris Faafoi, chief executive of the Insurance Council of New Zealand (ICNZ), stated, "The continent’s institutional capacity to manage large-scale climate adaptation projects remains insufficient." This reality speaks volumes about the need for not just funding but also infrastructure and governance frameworks to effectively utilize financial assistance when it is available.
Meanwhile, as nations like New Zealand strive to tackle climate vulnerabilities, they are crafting comprehensive strategies to adapt effectively. The ICNZ welcomed the government's commitment to introduce legislation for a climate adaptation framework by 2025. Faafoi asserted, "New Zealanders need certainty about the way natural hazard risks from climate change are going to be managed. Government leadership in this area is welcome." This proactive stance recognizes the increasing natural hazard risks precipitated by climate change, which, as Faafoi notes, can severely impact housing stability and insurance markets. Such efforts signify how government actions can provide more strategic guidance on adaptation initiatives.
The care economy, often overlooked yet fundamentally significant to addressing climate change effects, also demands attention. This sector, which involves both paid and unpaid caregiving—predominantly conducted by women—plays a pivotal role. The importance of investing in care infrastructure cannot be understated; investing here builds resilience within communities, especially when disasters hit. Despite its significance, funding for care services remains alarmingly low. Reports indicate only 4% of committed climate adaptation finance has been allocated to health, and just 2% has gone to education. There is ample room for improvement, as research supports the notion, "Every dollar invested in adaptation brings substantial economic benefits," according to Faafoi.
Adaptation strategies are not confined to infrastructures or frameworks alone; businesses are also reevaluated their supply chain strategies amid growing climate risks. Research conducted on Indian firms shows how they diversify their sourcing to mitigate potential climate disruptions. The findings suggest nearly 96.5% of firms now source from multiple suppliers across different regions. This diversification is key to ensuring production continuity during localised climate shocks, like flooding or drought. Interestingly, when floods impact suppliers, those located in high-risk areas tend to lower their prices, which acts as an incentive for firms to maintain their supply chains, even amid challenges.
While these adaptations may bolster economic stability, they ironically deepen regional disparities. Firms diversifying their supply chains incur increased operational costs, which can constrain wage growth, particularly within climate-vulnerable regions. The research indicates these adjustments can decrease real wages by approximately 2% across affected areas, highlighting indirect consequences of climate change adaptation strategies.
If there is one takeaway from these scenarios, it is the pressing need for immediate, comprehensive action on climate finance. The overwhelming climate financing gap poses significant threats not just to Africa’s future but to the global climate system overall, emphasizing the interconnectedness of various efforts. Wealthy nations must now heed the call to fulfill their pledges and substantially increase funding to meet Africa’s financial needs. Concurrent investment in care services and actionable climate adaptation frameworks is equally imperative.
Finally, as the issues surrounding climate risk and adaptation grow more urgent, there lies great potential for collaborative efforts across multiple sectors. The alignment of public policies, private sector strategies, and community commitments is key. Only by fully recognizing the interconnected nature of care systems, climate finance, and local adaptation needs can we hope to forge lasting solutions. After all, the care of people and care for the planet are two sides of the same coin—and must be prioritized together.