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The macroeconomic case for investing in climate adaptation

Author

Listed:
  • Rising, James
  • Godfrey, Nick
  • Watkiss, Paul
  • Surminski, Swenja
  • Baeza Breinbauer, Daniela
  • Gutiérrez-Hurtado, Maria Paula
  • Pimenta, Maria João

Abstract

This report provides a groundbreaking new synthesis of the economic and fiscal risks arising from physical climate change and the economic case for investing in adaptation to climate impacts. The report combines the results of nearly 300 studies and more than 6,000 unique estimates of the consequences of climate change and adaptation investment, and includes case studies from six countries. The report shows that the macroeconomic and fiscal consequences of climate impacts are already significant, growing, and likely to continue and intensify without further efforts to adapt and increase resilience. The evidence shows that early and strategic adaptation investments can bolster economic stability, reduce debt levels and borrowing costs, and accelerate development.

Suggested Citation

  • Rising, James & Godfrey, Nick & Watkiss, Paul & Surminski, Swenja & Baeza Breinbauer, Daniela & Gutiérrez-Hurtado, Maria Paula & Pimenta, Maria João, 2026. "The macroeconomic case for investing in climate adaptation," LSE Research Online Documents on Economics 137972, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:137972
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    File URL: https://researchonline.lse.ac.uk/id/eprint/137972/
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    JEL classification:

    • N0 - Economic History - - General
    • F3 - International Economics - - International Finance
    • G3 - Financial Economics - - Corporate Finance and Governance

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