As floods, fires and heatwaves grow more frequent and destructive, new research shows that climate adaptation isn’t just urgent. It’s also one of the smartest investments governments can make.
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.
“This research has pried open the lid on what resilience is truly worth – and even that first glimpse is staggering,” said Sam Mugume Koojo, co-chair of the Coalition of Finance Ministers for Climate Action from Uganda.
Climate impacts are no longer distant threats
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.
“One of our most striking findings is that adaptation projects aren’t just paying off when disasters happen – they generate value every day through more jobs, better health and stronger local economies,” said Carter Brandon, senior fellow at WRI.
“That’s a major mind shift: policymakers don’t need a disaster to justify resilience – it’s simply smart development.”
New approaches and new urgency
Europe has made progress.
Breda in the Netherlands recently became the EU’s firstNational Park City in recognition of its work to restore wetlands, green its streets and adopt a whole-of-society approach to embracing eco-minded urban development.
Twenty-two cities in Europe, including Copenhagen, Milan and Stockholm, earned an A grade from the non-profit CDP in 2023 for theirclimate leadership.
Experts still say that Europe lacks a clear, unifiedgreen 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.
Could COP30 offer a turning point?
As global leaders prepare for COP30, the WRI and others argue that climate adaptation should no longer be treated as a side project but rather as a central part of policy.
“This evidence gives leaders and non-state actors exactly what they need heading into COP30: a clear economic case for scaling adaptation,” said Dan Ioschpe, a high-level champion for COP30, the global climate conference taking place in Belém, Portugal, in November.
“Belém must become a turning point [in] mainstreaming resilience into national and local priorities and unlocking the full potential of non-state actors’ leadership.”