The Opportunity in Digital Finance for Climate Resilience (DF4CR)

Current estimates suggest that at least 3.3 billion people are already vulnerable to the negative effects of climate change, namely those who depend on natural resources for their livelihoods, those who are poor and vulnerable, and those in particular geographies such as coastal areas and urban settlements. This magnitude suggests that the total addressable market for climate resilience solutions — those that can help people anticipate and recover from natural disasters, adapt to long-run changes in weather, and build resilience in markets and communities — is almost 50 percent of the world’s population. Even though there is significant need for solutions that can help vulnerable people build climate resilience, and there is growing willingness among investors and governments to take action, there remains significant uncertainty about how to get these solutions to the people who need them most. This brief by BFA Global outlines the opportunity in the DF4CR space for early-stage investors, incubators and accelerators, with a focus on models and products that the Catalyst Fund team believe are ripe for scale and replication.