According to a new report from the World Resources Institute (WRI), every €1 spent on climate adaptation will yield roughly €10 in benefits over a decade.
That figure comes from analysing 320 projects across 12 countries, including infrastructure upgrades, health system improvements and disaster risk management schemes. All told, they amounted to more than €1 trillion in projected returns.
Glaciers are disappearing from the Alps, and record heatwaves and flash floods are costing lives and destroying livelihoods. Scientists warn that even if warming reverses, much of the damage, such as Arctic melting, won’t be undone in our lifetimes.
As climate change intensifies, the need to protect lives, economies and ecosystems is no longer a distant concern. But this research suggests that adaptation is not only a necessity – it pays off.
The WRI defines adaptation investments as those aimed at reducing or managing physical climate risks, such as climate-smart agriculture, expanded health services and urban flood protection.
The research found that some sectors generate bigger gains than others.
While the WRI projects 27 per cent returns on average, health-focused initiatives, such as expanding services to cope with rising malaria and heat stress, could deliver average returns of 78 per cent. Investments in risk management projects, from early warning systems to flood defences, also stand out for their high impact and cost-efficiency.
And they didn’t just pay off in times of crisis.
The WRI report found that over half of the benefits from adaptation projects occur even if climate shocks don’t happen. For example, irrigation systems can support crop diversity, and evacuation shelters can double as community centres.
Twenty-two cities in Europe, including Copenhagen, Milan and Stockholm, earned an A grade from the non-profit CDP in 2023 for their climate leadership.
Experts still say that Europe lacks a clear, unified green development strategy. Some warn that investment is not keeping pace with growing risks. In 2023 alone, disasters cost the continent more than €77 billion, according to the World Bank. Without action, the economic toll of climate change could reach seven per cent of EU GDP.
But countries around the world are exploring unconventional methods to prepare for the future and improve life in the present.
The Pacific island nation of Nauru has proposed a ‘golden passport’ scheme, offering citizenship to climate investors to help fund critical infrastructure – a controversial idea that underscores the urgency many nations face in bridging adaptation finance gaps.
A Guest Editorial