Washington, D.C. USA// — As climate hazards like floods and wildfires intensify — and global financial resources grow tighter — a new study by World Resources Institute (WRI) 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 study, which analysed 320 adaptation and resilience investments across 12 countries totalling $133 billion, finds that every $1 invested in adaptation and resilience generates more than $10 in benefits over ten years. This translates to potential returns of over $1.4 trillion, with average returns of 27%.
Some sectors record even greater returns. Health sector investments, for example, are projected to deliver returns of over 78%, driven by the high benefits of protecting lives from climate-related impacts like heat stress, malaria and dengue fever. Investments in disaster risk management, such as early warning systems, also showed exceptionally high returns derived from safeguarding lives and infrastructure.
The study 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. However, in many cases, the resulting development and social benefits matched or exceeded the avoided losses from climate impacts.
“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. “It’s time for leaders to recognise climate adaptation is not just a safety net but a launch pad for development.”
WRI evaluated projects based on three key types of returns (commonly referred to as the “triple dividend of resilience”): avoided losses from climate disasters; induced economic gains (e.g. job creation and increased crop yields); and broader social and environmental benefits (e.g. improved health systems, biodiversity). On average, benefits were fairly evenly distributed across all three types. Yet only 8% of investment appraisals estimated the full monetised values of these dividends, suggesting that actual rates of return are substantially underestimated in economic assessments of most adaptation investments.
Benefits beyond avoiding climate shocks
While adaptation investments have traditionally focused on reducing climate vulnerability and strengthening the resilience of investments, the study finds that over 50% of their documented benefits occur even if climate-related disasters do not happen.
Infrastructure built to better manage extreme weather events may provide year-round value: irrigation systems can support diverse cropping patterns, and evacuation centres may double as community hubs. Nature-based solutions — such as watershed, wetland and coastal protections — frequently provide added ecological and recreational benefits.
These findings demonstrate that investing in adaptation is not just a protective measure — it also helps advance countries’ broader development priorities and sustainable development goals.
“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, WRI. “That’s a major mind shift: policymakers don’t need a disaster to justify resilience — it’s simply smart development.”
Adaptation investments also cut carbon and protect nature
Nearly half of the analysed adaptation investments are also expected to cut greenhouse gas emissions, showing that adaptation and mitigation often go hand in hand. This overlap could open the door to greater climate finance from investors focused on lowering emissions.
The strongest examples of this win-win were found in energy, forestry, transport, cities and agriculture sectors. Many of these projects use nature-based solutions that sequester carbon and deliver ecological benefits, such as urban tree planting to reduce heat or stabilising hillsides to reduce erosion.
Recommendations for policymakers
Based on these findings, WRI recommends that government leaders treat adaptation as an engine for economic opportunity and fully integrate resilience into national development strategies. The paper also calls for a standardised approach to measuring and reporting adaptation outcomes, which would improve investments’ comparability, transparency and accountability.
The study builds on the Adapt Now report released by WRI and the Global Commission on Adaptation in 2019 and was prompted by the G20 and the government of Brazil’s interest in better evidence of economic benefits from investing in resilience.
“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, Climate High-Level Champion for COP30. “Belém must become a turning point – mainstreaming resilience into national and local priorities and unlocking the full potential of non-state actors’ leadership.”
Select Case Studies from the Report
WRI reviewed adaptation investments across four major sectors — agriculture, health, infrastructure, and water — highlighting projects with strong projected returns, well-quantified dividends and clear adaptation impacts.
Agriculture sector adaptation investments improve climate resilience, land productivity, carbon storage, and expand rural opportunities for income diversification. Example:
- China – Hubei Yichang Rural Green Development Project. Financed by the Asian Development Bank, this project supports small-scale farmers by improving climate-smart agricultural practices and installing agricultural waste and water treatment systems. Projected returns are nearly twice the original investment.
Health sector adaptation investments improve access to essential health services for vulnerable communities and strengthen health systems to cope with climate change and public health threats. Example:
- Kenya – Social and Economic Inclusion Project. This World Bank-backed initiative to prepare for climate shocks enhances community resilience through improved health, education, nutritional services, and social safety nets. It is projected to deliver benefits nearly three times greater than its estimated cost.
Infrastructure sector adaptation investments include resilient cities, energy, transport, and disaster relief systems. They help strengthen urban planning, enhance climate resilience in new or existing infrastructure, and improve disaster preparedness. Example:
- Brazil – Fortaleza Sustainable Urban Development Project. Designed to strengthen flood resilience and urban planning, this World Bank-funded project is projected to generate an estimated 2:1 return on investment.
Water sector adaptation investments provide sustainable water services, reduce flood risks and use nature-based solutions to protect green infrastructure in cities. Example:
- South Africa – Transformative Riverine Management (Durban). Funded by the C40 Cities Finance Facility, this project uses nature-based approaches, land tenure arrangements and new river management systems to reduce flood risks. It is expected to deliver returns nearly six times greater than the initial cost.
