CIIP's Chii Fen Hiu was honoured to participate in the UN Climate Change Conference in Bonn, Germany, where the inaugural Veredas Dialogue convened experts and practitioners to discuss how financial flows can be better aligned with the goals of the Paris Agreement.

At the dialogue, she delivered an expert presentation on "Financial Sector Approaches to Climate Risk Management and Investing in Resilience – How to Enhance the Business Case for Adaptation and Mobilize Private Capital for Resilience", drawing on insights from the recently released Climate Adaptation and Resilience in Asia report and sharing perspectives from the private sector across Asia.

Some key takeaways from the presentation:

• Climate costs are increasingly material. Based on S&P estimates, climate-related costs for listed companies could exceed US$1.3 trillion by 2030. Yet climate risks remain difficult to price due to time horizon mismatches, data gaps, and modelling limitations.
• While direct physical climate impacts are beginning to be quantified, indirect impacts on operations, supply chains, and broader economic systems remain poorly understood. This leaves sectors such as agriculture and healthcare significantly underpriced from a risk perspective.
• Beyond risk mitigation, resilience investments can generate tangible commercial value. From cost savings and operational continuity to new revenue opportunities, better valuation of "resilience dividends"—including avoided losses, induced economic benefits, and broader social and environmental co-benefits—is critical to strengthening the business case for adaptation.
• The private sector cannot do it alone. Scaling climate adaptation and resilience requires stronger public-private-philanthropic partnerships, with each stakeholder playing distinct yet complementary roles. It is time to break down silos and work towards shared resilience outcomes.

The mood in the room was one of realistic optimism. There was broad recognition among seasoned experts that climate adaptation and resilience are urgent priorities, particularly for developing economies that have contributed minimally to global emissions.

Food and water security continue to lag behind energy in attracting investment attention, despite their critical importance. At the same time, participants acknowledged a fundamental truth: there can be no effective adaptation and resilience without mitigation. Both must advance hand in hand. We are pleased to have contributed to this important convening that will help inform the road to COP31.

Our gratitude to co-chairs Ralien Bekkers, Debbie Swanepoel, and Leonard Schmidt of the UNFCCC Secretariat. We look forward to continuing our work with partners to accelerate investment, collaboration, and action towards a more climate-resilient future.

All background materials and expert presentations are accessible on the UNFCCC Veredas Dialogue webpage: https://unfccc.int/event/first-meeting-of-the-veredas-dialogue-on-the-implementation-of-article-2-paragraph-1c-of-the-paris.