The Compelling Investment Case for Climate Adaptation

You can dowload a PDF version of this article here.

Extreme weather events like floods and droughts are becoming more frequent and intense around the globe, disrupting communities and the infrastructure they rely on. In 2024 alone, the world endured 58 disasters that wreaked over a billion dollars in damages each. Yet finance to cope with and respond to these impacts falls persistently short: The gap between funding needed to adapt to climate change and what is currently available is as high as $359 billion per year.

Part of the reason is that adaptation measures, such as strengthening early warning systems or making infrastructure more resilient, are seen only as a way to avoid potential losses — not as a broader investment opportunity. But this underestimates the true value of adaptation and the returns it can bring.

New WRI research finds that investing $1 in adaptation can yield more than $10.50 in benefits over 10 years. This reflects not only the avoided losses from climate impacts, but also a wide range of economic, social and environmental benefits that are generated even when disasters don't occur.

In other words, adaptation is not just a crucial response to the climate crisis; it is also one of the smartest investments of our time.