Every $1 invested in climate adaptation and resilience will generate more than $10 in benefits over the coming decade, a new study by the World Resources Institute has found.
According to the WRI’s study, which examined 320 adaptation and resilience investments across 12 countries, which together totalled $133 billion, global returns of $1.4 trillion are possible from climate adaptation, with average returns of 27%.
‘Powerful evidence’
‘As climate hazards like floods and wildfires intensify — and global financial resources grow tighter, [this study] presents powerful evidence that bolstering funding for adaptation and resilience is not only urgent but also one of the smartest development investments available today,’ the WRI noted.
Some sectors are likely to see even higher returns, with health sector investments projected to deliver returns of more than 78%, due to a reduction in heat stress, malaria and dengue fever.
Elsewhere, investment in disaster risk management, including early warning systems, also showed ‘exceptionally high returns’ derived from safeguarding lives and infrastructure.
‘Launch pad for development’
“This research has pried open the lid on what resilience is truly worth — and even that first glimpse is staggering”, commented Sam Mugume Koojo, co-chair of the Coalition of Finance Ministers for Climate Action from Uganda. “It’s time for leaders to recognise climate adaptation is not just a safety net but a launch pad for development.”
Adaptation investments offer a ‘triple dividend’, according to the WRI – reducing losses linked to climate-related disasters, bolstering economic development through increased productivity and employment, and delivering broader environmental and social improvements.
“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,” added Carter Brandon, senior fellow, WRI. “That’s a major mind shift: policymakers don’t need a disaster to justify resilience — it’s simply smart development.”
The report also examines the benefits that have accrued from major adaptation projects in China (Hubei Yichang Rural Green Development Project), Kenya (Social and Economic Inclusion Project), Brazil (Fortaleza Sustainable Urban Development Project) and South Africa (Transformative Riverine Management, Durban). Read more here.
