A call to action

Climate adaptation is essential to address the growing impacts of climate change, which disproportionately affect vulnerable populations and developing countries. Adaptation actions provide a “triple dividend”: avoiding losses, unlocking economic benefits, and enhancing social and environmental resilience. Investing $1.8 trillion globally in adaptation from 2020 to 2030 could generate $7.1 trillion in net benefits, with benefit-cost ratios as high as 10:1. Key recommendations include integrating climate risks into decision-making, improving governance, and increasing public and private financing.

Food security and livelihoods of small-scale producers

Climate change is projected to reduce global agricultural yields by up to 30% by 2050, with small-scale farmers most affected. Boosting agricultural research and development to develop climate-resilient crops, supporting farmers with improved seeds, and leveraging digital technologies for weather forecasting are key actions. For instance, drought-tolerant maize in Zimbabwe increased yields by 600 kilograms per hectare. Diversifying incomes, strengthening social security systems, and implementing weather-based insurance schemes protect livelihoods. Addressing gender inequities by improving women farmers’ access to resources could enhance yields by 20–30%.

Natural environment

Nature plays a critical role in resilience by regulating water flows, mitigating floods, and supporting biodiversity. However, one in four species faces extinction, and ecosystem degradation is accelerating. Protecting and restoring ecosystems like mangroves, forests, and wetlands can deliver significant cost savings. For example, mangrove restoration is 2 to 5 times cheaper than building engineered flood defences. Governments are urged to adopt participatory planning, embed nature-based solutions in policy, and invest in large-scale restoration efforts, such as the Bonn Challenge goal of restoring 350 million hectares of degraded land by 2030.

Water

By 2050, over 5 billion people will experience water shortages for at least one month annually. Climate change exacerbates water scarcity, flooding, and pollution. Key actions include investing in watershed restoration, modernising irrigation systems, and implementing efficient water allocation policies. For example, reallocating 25% of water to higher-value uses could mitigate GDP losses in water-scarce regions. Cities should adopt water-smart approaches such as wastewater recycling and reducing leaks. Improved water monitoring and collaboration across jurisdictions are essential to address transboundary water challenges.

Cities and urban areas

Urban areas face significant risks from rising seas, heatwaves, and flooding. Without adaptation, costs to coastal cities alone could exceed $1 trillion annually by 2050. Cities should integrate climate risk data into planning, upgrade infrastructure, and invest in nature-based solutions such as green roofs and urban tree planting. For instance, China’s “sponge cities” programme aims to absorb up to 80% of stormwater runoff. Upgrading informal settlements and engaging communities in decision-making are critical to ensuring equitable resilience.

Infrastructure

Much of the world’s infrastructure is ill-prepared for climate impacts. Upgrading and climate-proofing assets can yield significant economic returns, with benefit-cost ratios of 4:1 for resilient infrastructure projects. Governments must revise technical codes, assess risks, and prioritise resilient infrastructure systems. Public-private partnerships can mobilise financing, while innovations such as modular infrastructure and decentralised energy systems can enhance resilience in underserved areas. Strategic planning is necessary to avoid locking in vulnerabilities.

Disaster risk management

The intensity and frequency of climate-related disasters are increasing. Early warning systems, combined with community-based disaster planning, can save lives and reduce damages by up to 30%. Investments in flood defences and cyclone shelters have proven highly effective, as seen in Bangladesh, where improved systems have drastically reduced fatalities during cyclones. Governments and private insurers should expand risk-pooling mechanisms and climate-contingent financing to manage the growing risks.

Financing adaptation

Significant investment is required to accelerate adaptation. Public financing must support infrastructure, agriculture, and vulnerable communities, while private sector investments should focus on resilient supply chains, insurance, and innovative solutions. International climate finance is critical for developing countries, with concessional funding needed to bridge resource gaps. Mechanisms such as resilience bonds and blended finance models can attract additional investment, while public policies should ensure transparent and equitable distribution of funds.

The immediate imperative: A year of action

The report calls for urgent implementation of adaptation strategies. Governments, businesses, and civil society must prioritise initiatives such as integrating climate risks into financial planning, doubling agricultural research funding, and scaling up investments in resilient infrastructure. Collaboration across sectors and international borders is essential to achieve systemic resilience and ensure a sustainable future.