This article argues that a paradigm shift is required in order to engage the private sector in identifying climate change risks, response measures, and adaptation needs to be a much higher priority in developing countries. It states that successful private sector engagement in adaptation will catalyze greater investment in vulnerability reduction, which will in turn accelerate the replication of climate-resilient technologies and services in core development sectors, especially in developing countries where investment in long-lived infrastructure is growing rapidly. The article concludes that private sector companies should integrate adaptation into their strategies and investments and that public policy should provide appropriate incentives for such investments through communication of risks, incentives for resilience enhancing measures, and where necessary regulation to avoid shifting risks onto the public.