The (in)coherence of adaptation taxonomies

Abstract

Adaptation taxonomies are a key tool in the sustainable finance toolkit, creating clarity and coherence around what constitutes an adaptation-aligned investment. Twenty-four adaptation taxonomies have been published in the last 4 years, forcing us to ask the question-clarity or chaos? We compare these taxonomies based on their underlying principles, definitions of adaptation, and sector coverage and reveal major differences; potentially jeopardising the much-needed clarity they seek to provide.