On March 11, a webinar titled "Growing Successful Adaptation Solutions: How to Build Effective Collaborations for Attracting Investment" took place, where participants explored real-world cases of successful partnerships leading to investment in adaptation solutions. 

Key Themes Discussed: 

• Bridging the Awareness and Language Gap in Climate Adaptation 
  Many start-ups struggle to position themselves due to complex climate terminology and a lack of awareness about how their solutions fit into adaptation frameworks. A shift toward clearer, investor-friendly language is essential. 
• The Need for Longer-Term Support in Climate Adaptation Programmes 
  Most climate adaptation programmes last only 1–2 years, which is too short for meaningful impact. Start-ups need sustained investment and mentorship to secure funding and scale their solutions effectively. 
• Rethinking the Entrepreneurship Model for Climate Adaptation 
  With fragmented and overlapping support systems, entrepreneurs often hop between programmes without a clear pathway. A more structured, long-term approach—involving governments, civil society, and entire ecosystems—is crucial for adaptation at scale. 

The effects of climate change are undeniable, and our current efforts and investments in mitigation are simply not enough. Faced with escalating environmental challenges, we must explore alternative solutions to protect the planet and all life on it. Adapting to climate impacts—such as droughts, floods, wildfires, and soil degradation—is no longer optional; it is a critical skill we must rapidly improve. Through the CAIL project, we aim to tackle these challenges by accelerating innovation and increasing private sector investment. 

Despite being among the most affected by climate change, the private sector currently contributes only 3% of total investment in climate adaptation. To bridge this gap, the CAIL project and its working community—dedicated to incubating and accelerating micro, small, and medium-sized enterprises (MSMEs)—held an insightful discussion with representatives from Climate KIC, UNDP, and GIZ, alongside around 80 participants from over 50 organisations across countries such as Tanzania, Kenya, Mexico, Austria, and Ecuador. The goal was to better understand how their programmes support entrepreneurs in developing innovative adaptation solutions and securing the funding they need. 

Lessons from adaptation investment programmes 

Denise Engel from GIZ’s Private Adaptation Investment Bootcamp (PrivABoo) highlighted a key insight on mobilising investment in private ventures: many SMEs are unaware that their products and services contribute to climate adaptation and, as a result, miss out on funding opportunities from local and international organisations. 

To bridge this gap, PrivABoo focused on raising awareness and providing investment readiness support, particularly for entrepreneurs in emerging economies who face barriers to scaling due to limited capital and technical assistance. At the same time, private investors received technical support to identify financing opportunities, ensuring a more effective matchmaking process between both parties. 

Similarly, the UNDP Adaptation Fund Climate Innovation Accelerator (AFCIA), led by Ekin Celikyay, encountered challenges such as low awareness, complex local contexts, funding gaps, and policy barriers. Their strategy had three key elements: first, empowering communities to create tailored solutions; second, enhancing resilience by boosting productivity and conserving ecosystems; and third, refining business models and exploring sustainable financing beyond grants. By integrating technical assistance, capacity building, and investment support, AFCIA helps develop more sustainable and scalable solutions.  

Climate KIC takes a comparable approach, explained Ayoub Derdabi, with its Adaptation and Resilience ClimAccelerator, initially supporting climate entrepreneurship in South Asia and East Africa before shifting its focus to Tanzania. Like AFCIA, it helps start-ups develop and validate business models while improving access to markets and capital. 

To build rural resilience, Climate KIC emphasises capacity building through partnerships with local organisations, ensuring long-term impact. It provides tools and methodologies, including a climate impact framework, to help start-ups measure and communicate their impact, while local partners ensure solutions are relevant and effective in their markets. 

One key lesson learned was the importance of strengthening connections between start-ups, local partners, and communities. These connections unlock additional resources, knowledge, and market opportunities. However, greater engagement with local NGOs and governments is still needed to maximise impact. 

Bridging the awareness and language gap in climate adaptation 

A key challenge for climate adaptation programmes is the complex, technical language used in the sector, which often alienates entrepreneurs and limits their access to funding. Many start-ups struggle to position themselves simply because they don’t recognise how their solutions fit within adaptation frameworks. 

Denise Engel from PrivABoo highlighted the need to move away from academic jargon and towards clearer, investor-friendly language. Engaging directly with entrepreneurs, simplifying application processes, and translating climate concepts into practical business terms proved essential. 

Ayoub from Climate KIC echoed this, noting that even climate professionals sometimes find adaptation classifications confusing. Climate KIC helps entrepreneurs identify where they fit within adaptation categories, ensuring they can communicate their impact effectively to investors. To make adaptation language more accessible, it refined its approach in the A&R ClimAccelerator in Tanzania—replacing the term "adaptation businesses" with clearer phrasing like "solutions that help communities prepare for, cope with, and recover from climate change-related threats. 

Beyond simplifying language, there is also a need for a shared framework that bridges the gap between climate experts, investors, and entrepreneurs. Standardising how adaptation benefits are communicated could make it easier for start-ups to access support and scale their impact. 

The need for longer-term support in climate adaptation programmes 

Building a successful start-up takes time, and so does market adoption. Yet, most climate adaptation programmes run for just one to two years—well-intentioned but ultimately too short to provide the sustained support that entrepreneurs need. As a result, start-ups often hop from one programme to another, struggling to secure long-term backing. 

PrivABoo’s experience stressed that practical support requires time, with 18 months being the bare minimum for meaningful progress. Even this timeframe can be limiting, as securing investments and scaling solutions takes much longer. 

Participants on the call joined the discussion, with Gustavo Gutierrez Thompson, a programme consultant at CAINCO in Bolivia, highlighting that the time required for start-up incubation, pre-acceleration, and acceleration varies, particularly between digital and hardware solutions. With capital already limited, short-term programmes risk leaving start-ups without the runway they need to succeed. 

To create lasting impact, climate adaptation initiatives must adopt a longer-term perspective, providing sustained mentorship, investment readiness development, and market integration beyond the typical programme cycle. 

Do we need to rethink the entrepreneurship model for climate adaptation? 

Alois Posekufa Mhlanga, Chief Climate Technology and Innovation at UNIDO, raised a critical question: Is the current entrepreneurship and innovation model truly suited to solving the complex challenge of climate adaptation? Do we need to fundamentally rethink our approach? Are we creating unrealistic expectations, leading people to lose hope in their ability to adapt? 

One of the biggest challenges is the fragmentation of support systems for climate adaptation start-ups. While many organisations and funders offer programmes, these initiatives are often disconnected, overlapping, or even duplicating efforts. In reality, they are variations of the same approach, just under different names. Without a clear mapping of available support, start-ups struggle to find the right programme for their stage of development, leading to inefficiencies and missed opportunities. 

A more structured and transparent system is needed—one where entrepreneurs can easily navigate available support, and funders can better coordinate their efforts. Instead of forcing start-ups to hop from one short-term programme to another, there should be a cohesive journey and collaboration across different organisations, ensuring sustained backing throughout their development. 

Yet, even with better coordination, the question remains: Is the start-up model alone enough to drive climate adaptation at scale? Only a tiny fraction of start-ups succeed. Are we funnelling vast amounts of energy into a system that helps only a few, while the majority of promising ideas struggle or fail? 

Ayoub from Climate KIC argued that entrepreneurs alone cannot solve this crisis. Local governments, civil society, and entire systems must be engaged. Adaptation challenges go beyond individual start-ups; they require systemic change. Entrepreneurs must first understand the specific climate vulnerabilities they are addressing and how to distribute solutions efficiently. Yet, even within the sector, there is no clear, proven strategy for tackling this complexity. As Ayoub pointed out, "We haven’t fully cracked the code on this yet." 

At the same time, he emphasised that entrepreneurs bring a unique advantage—their ability to adapt quickly and respond in real time to challenges. This flexibility is something supporting organisations, governments, and funders should embrace, shifting away from one-size-fits-all solutions and instead designing support systems that foster adaptability and continuous learning. 

If you’re interested in rethinking this approach with us, we invite you to get in touch. We are actively working on shaping a more effective, collaborative model for climate adaptation. 

Video of the webinar: