The Adaptation Imperative
The investment landscape is shifting. While the focus has long been on climate change mitigation—reducing carbon emissions to prevent warming—a new reality is emerging in financial markets: adaptation is now essential. A recent Financial Times article notes that fund managers increasingly recognize that “climate change is already happening.” We need solutions that address the impacts already locked in.
This isn’t defeatism; it’s pragmatism. The rise of climate adaptation funds represents a mature understanding that we must simultaneously pursue mitigation and adaptation strategies. As Convective Capital founder Bill Clerico told the FT: “There’s been this perception that working on resilience and adaptation [rather than emissions reduction] is giving up. It has to be ‘and’ not ‘or’.”
The Market Opportunity
The market is responding accordingly. Several major funds have launched with adaptation-specific mandates:
- Mazarine Climate is raising $25 million for early-stage companies developing digital technology to address climate change-related water risk
- Invesco is targeting $500 million for its Climate Adaptation Action Fund, with $200 million already committed
- Gawa Capital is raising €300 million to help vulnerable communities, particularly smallholder farmers, build climate resilience
- Convective Capital, after its initial $25 million wildfire-focused fund, is now targeting $75 million for its second fund
These investments aren’t just about defensive positioning—they recognize significant market opportunities. Convective has already invested in 18 companies, including those developing AI systems for rapid fire detection that could “save billions in fire costs.”
Moreover, it is not just venture funds and private equity. Corporations, investment banks, and regional and global authorities demand climate intelligence for adaptation, business continuity, strategic decision-making, and more. The bottom line is that business needs tools to quantify, predict, and address adaptation, risk, and resilience. These insights are required not just for owned and operated assets but also for critical dependencies (e.g., utilities, logistics, etc.) and competitive assets (e.g., REITs) to give a complete picture of an entity’s future.
Where ClimaTwin Fits In
This is precisely where ClimaTwin’s capabilities become essential. As fund managers, investors, and others pivot toward adaptation, they need robust, granular data and analytics to:
- Identify physical risks with precision across assets, infrastructure, and supply chains
- Model scenarios with sophisticated climate analytics that account for both gradual changes and extreme events
- Quantify financial impacts in ways that translate climate science into actionable investment metrics
- Track resilience improvements to measure adaptation ROI and effectiveness
ClimaTwin’s advanced technology creates virtual representations of physical assets integrated with advanced climate modeling. This approach provides the critical data backbone that adaptation-focused investors need to make informed decisions.
Cross-Sector Applications
A recent piece in the Financial Times highlighted how recent adaptation funds span multiple sectors—from wildfire detection technology to water risk management. ClimaTwin’s platform is designed to work across these diverse domains, providing customized insights for:
- Infrastructure protection: Identifying vulnerabilities in power grids, transportation networks, and urban environments
- Water resource management: Modeling flood and drought scenarios that affect water security
- Supply chain continuity: Analyzing cascading climate risks across global business operations
- Utilities/Telecom
- Logistics
The Path Forward
As John Robinson of Mazarine noted in the FT piece, there has been a “not-so-subtle shift” in the investment community toward adaptation. Companies and communities “have to deal with a world that’s going to be significantly disrupted because of our inability to decarbonize” quickly enough.
ClimaTwin is positioned at the forefront of this shift, providing the technological foundation for the growing adaptation economy. Turning climate data into actionable intelligence empowers investors, businesses, and communities to build resilience in a warming world. The message is clear: adaptation investment is not about giving up on climate action—it’s about facing reality and creating solutions that work in the world we have. At the same time, we continue fighting for the world we want.
ClimaTwin® is a B2B SaaS solution that empowers stakeholders to assess the physical and financial impacts of future weather and climate extremes on infrastructure assets and the built environment.
Ready to get started? To learn more about how ClimaTwin can help you assess the physical and financial impacts of future weather and climate extremes on your infrastructure assets and investment portfolios, please visit www.climatwin.com today.
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