Adaptation, Mitigation and What's Between Them

This position paper explores the critical interplay between adaptation and mitigation as complementary strategies for effective climate risk management.

The paper distinguishes between adaptation (managing preparedness for climate impacts) and mitigation (reducing factors causing climate change), showing how businesses and governments must balance short-term resilience with long-term risk reduction.

Examining financing challenges, the analysis highlights how immediate climate impacts require emergency funds and public-private partnerships, while long-term transformation demands innovative financial instruments like green bonds and climate investment funds.

The paper identifies key stakeholders — governments providing regulatory frameworks, regulators ensuring financial stability, and institutional bodies directing capital flows — and demonstrates how their coordinated action integrates physical risk management with transition risk management, as evidenced by recent Israeli initiatives like the Green Taxonomy and Banking Directive No. 345.

By integrating these approaches, organizations can not only reduce climate risks but also unlock new economic opportunities within a sustainable green economy.

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