Initial grants from the A&R Fund will go toward efforts to combat urban extreme heat in South Asia, Southeast Asia, and sub-Saharan Africa, Photo illustration AI
A new Adaptation and Resilience Fund (A&R Fund) will help deliver over $50 million to locally led adaptation solutions that support communities facing the most acute climate risks, including extreme heat, floods, and droughts.
The Fund, launched by ClimateWorks Foundation in partnership with Howden Foundation, Laudes Foundation, Quadrature Climate Foundation, and The Rockefeller Foundation, seeks to address a critical financing gap in climate adaptation.
The goal is to boost community resilience in low- and middle-income geographies, with projects ranging from early warning systems to innovative financial tools tailored to local realities.
“Adaptation is where local innovation meets global momentum. With bold investments in climate adaptation, philanthropy can help connect the dots to strengthen collaboration, pilot scalable solutions, and build resources for community resilience,” said Jessica Brown, senior director of adaptation and resilience at ClimateWorks Foundation.
The new funding fulfills a $50 million pledge made by philanthropies in 2023, in response to the UN Secretary-General’s Call to Action on Extreme Heat.
The announcement reflects growing recognition that while decarbonisation remains essential, adaptation efforts must be accelerated, particularly in regions already experiencing the harshest impacts of climate change.
According to the announcement, more than 2.4 billion people face severe heat each year.
For many of these individuals and communities, philanthropy can serve as a critical lifeline, helping reduce health and economic risks while supporting systems that protect livelihoods.
Initial grants from the A&R Fund will go toward efforts to combat urban extreme heat in South Asia, Southeast Asia, and sub-Saharan Africa areas where rising temperatures, heat-related illnesses, and economic disruptions are increasingly intersecting.
“We can’t win on decarbonisation if we don’t invest in resilience, and yet adaptation remains chronically underfunded. The Adaptation and Resilience Fund represents a turning point: by directing more than $50 million to locally led solutions, we are shifting power and resources directly to communities facing extreme heat and other climate shocks,” said Jess Ayers, CEO of Quadrature Climate Foundation.
“This isn’t just about survival, it’s about catalysing equitable, systems-level change where it’s needed most.”
Adaptation has historically been one of the most underfunded areas of climate action. Public financing currently covers just 10% of adaptation needs in low-income countries.
This shortfall has left many vulnerable communities without the tools, infrastructure, or financial buffers needed to cope with accelerating climate threats.
In contrast, business investments in adaptation and resilience are increasingly seen as both a moral imperative and an economic opportunity.
According to data referenced in the Fund’s announcement, returns on adaptation investments can range from $2 to $42 per dollar spent.
These investments can help build climate resilience at a local scale using people-centered solutions that also enhance long-term economic stability.
The launch of the A&R Fund also reflects a broader shift among funders who are recognizing the need to back climate resilience at scale.
In 2024 alone, over $650 million in funding went to adaptation efforts — a notable increase, though still far short of global needs.
“In the U.S. and around the world, people, especially vulnerable people, know that extreme heat, fueled by climate change, is not a future threat it is here, and getting worse,” said Elizabeth Yee, executive vice president of programs at The Rockefeller Foundation.
“This fund fills a critical need, helping cities take the steps they need to prepare for and protect their residents against extreme weather, starting with heat. We are proud to be working alongside a diverse group of partners who share a common goal: protecting people’s health and economic security.”
Similarly, Claire Harbron, CEO of Howden Foundation, emphasized the importance of collaboration and local empowerment.
“We’re proud to be a partner of the Adaptation and Resilience Fund, which demonstrates how philanthropy can work together to support locally-led adaptation solutions, ensuring our resources reach the places and communities that need them the most. Extreme weather events, driven by climate change, are the biggest risk the world faces over the next decade. Philanthropy has a critical role to play in supporting those most impacted to access the information and resources that they need to respond,” she said.
Later this month, ClimateWorks will issue a call for proposals from local organizations and initiatives working to address extreme heat and strengthen economic stability, workers’ rights, and health outcomes in vulnerable countries.
“Investing in climate adaptation is not just a moral imperative; it has clear business benefits,” said Amol Mehra, director of industry programmes at Laudes Foundation.
“Supporting innovative solutions that strengthen resilience can help address industry challenges, including protecting supply chains, reducing long-term risk, and creating long-term business value.”
As climate shocks intensify, the A&R Fund represents a coordinated philanthropic step to not only respond to today’s crises but to lay the groundwork for equitable and durable climate resilience tomorrow.
