Analysts at Citigroup have highlighted a growing financing gap in climate adaptation efforts, saying that as this gap grows and steps to mitigate climate change remain at a pace considered too slow, there will be a need for increasing amounts of capital and catastrophe bonds are a useful structure that can be used in support.
In a recent report, the Citigroup analyst team explained that as action to limit climate change is not at the pace required to slow its effects, increasing amounts of private capital may be needed to help in adapting and protecting assets and people.
The pressure to adapt increases as the pace of adaptation remains slow, driving an increasing need for capital, which Citigroup notes can be viewed as an opportunity for investors.
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