Global public debt levels have increased dramatically since the COVID-19 pandemic, and the growing need to finance climate change adaptation and address the fiscal impacts of climate-related events poses critical challenges for emerging markets and developing economies. Adaptation investments are essential for resilience. However, constrained fiscal space and rising borrowing costs hinder their ability to meet these needs. While adaptation investments yield high returns and foster growth, strategies like the ‘Big Push’ to accelerate spending can risk increasing debt distress without adequate concessional financing. Financing adaptation requires a multi-faceted approach that includes fiscal support from advanced economies, establishing a global carbon credit market, sustainability-linked bonds, and a debt restructuring framework that explicitly accounts for the challenges posed by climate change.