T20 Policy brief: Pathways to integrating adaptation and resilience into financial transition plans for climate-resilient development
T20 Policy brief: Pathways to integrating adaptation and resilience into financial transition plans for climate-resilient development
Pathways to integrating adaptation and resilience into financial transition plans for climate-resilient development
As climate impacts accelerate, especially in the Least Developed Countries (LDCs) and Small Island Developing States (SIDS), economic and social losses are compounding, driven in part by insufficient attention to resilience planning.
In response to this, South African think tank initiative, T20 - who is providing guidance to South Africa’s G20 presidency - has published a short policy brief calling for a shift in transition finance priorities as part of its accelerating climate action and the just energy transition taskforce. The policy brief urges G20 leaders to overhaul financial transition architecture to ensure that adaptation to climate change is no longer neglected in favour of mitigation.
The brief is written by SSN programme leads Samson Mbewe and Phatsimo Rahman, Mairi Dupar, senior technical advisor for CDKN, based at ODI Global (UK), and SSN and CDKN director Dr Shehnaaz Moosa. It draws on their extensive experience, including work from CDKN’s gender equity and social inclusion action area and the gender equality in a low carbon world project.
Five systemic barriers are identified: an institutional bias favouring mitigation over adaptation; fragmented and unreliable climate‑risk data; financial incentives that prioritise short‑term returns; a lack of standard metrics for adaptation; and investment valuation models that ignore resilience co‑benefits. These gaps leave vulnerable countries exposed to worsening climate shocks at both macroeconomic and community levels.
Recognising G20 nations’ influence over global financial norms, the brief argues they are uniquely positioned to redress transition finance priorities.
Three major policy recommendations are made:
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Mandate adaptation‑inclusive transition plans: G20 finance ministries and regulators should require financial institutions and corporates to integrate adaptation metrics aligned with TCFD, national plans (NDCs and NAPs), and clearly assess sectoral risks and resilience outcomes.
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Strengthen institutional capacity and data systems in climate‑vulnerable countries: build local risk infrastructure, analytical tools, and frameworks.
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Align monitoring and disclosure with emerging global standards: Harmonise financial reporting systems with GGA‑compatible tracking frameworks to improve consistency, transparency, and accountability in adaptation finance.
The brief argues for a systemic reset. Without embedding adaptation into transition planning, inequity will be exacerbated, and global stability will be jeopardised. It urges the G20 to step up as leaders of a more inclusive, climate‑resilient financial system.
See the full policy brief on T20’s website: Pathways to integrating adaptation and resilience into financial transition plans for climate-resilient
