Financing Adaptation and Resilience in London and the UK: Moving from Aspiration to Reality: Part I – Case Studies Analysis

Based on insights from the industry, this paper is part of the research project: “Financing Adaptation and Resilience in London and the UK.” The project identifies and discusses drivers and challenges for investing in adaptation and resilience and necessary changes for developing capital market solutions in London and the UK. This research has been conducted by the Centre for Climate Finance & Investment (CCFI) at Imperial College Business School and the Singapore Green Finance Centre, following papers focusing on adaptation and nature financing (Buhr, B. (2022); Holtedahl, P., Köberle, A. & Koci I. (2023); Whittaker, S. & Nguyen, T. (2023)). The research project, divided into three separate papers, takes a practical approach by focusing on the real estate and water sectors in London and the UK, ensuring the findings are directly applicable to the local context.

Part I Case Studies Analysis of the research project (this paper) highlights various adaptation and resilience investment and financing models, with eight case studies in London and the UK. The research includes an extensive review of regulations and relevant policy documents (see Annex 1). Data was collected from an  in-depth analysis of case studies focusing on real estate and the water sector in the UK (See Annex 2). This analysis responds to the following three questions: What is the investment proposition and the role of the private sector in adaptation and resilience? What are the main investment models and financing instruments for private investors in these areas? What are the major investment drivers for institutional investors such as pension funds and insurers? To achieve our objectives, we have developed a systematic methodology. This methodology analyses the case studies based on key factors influencing private sector investment. These factors include the valuing and pricing of resilience, revenue streams, and business models, as well as transparency and information to investors. We also consider skills, capacity, and financing capabilities, ensuring a comprehensive analysis.