Innovative financial instruments and their potential to finance climate change adaptation in Developing Countries

Private sector investment is expected to play an important role in closing the current gap between available financing for adaptation and that which is required by developing countries. To date, however, the level of private sector financing in adaptation, particularly in developing countries, has been quite low. Innovative financial instruments have been cited as a means of overcoming this situation, but what is their real potential to spur greater investment in climate change adaptation?