Climate change poses a serious challenge to social and economic development. Efforts to reduce greenhouse gas emissions need to move hand in hand with policies and incentives to adapt to the impacts of climate change. How much adaptation might cost, and how large its benefits might be, are issues that are increasingly relevant both for on-the-ground projects and in international development co-operation and negotiations contexts.
This report provides a critical assessment of adaptation costs and benefits in key climate sensitive sectors, as well as at national and global levels. It also moves the discussion beyond cost estimation to the potential and limits of economic and policy instruments - including insurance and risk sharing, environmental markets and pricing, and public private partnerships - that can be used to motivate adaptation actions.