WRI Study Finds Climate Adaptation Investments Yield Massive Returns — Over $10 for Every $1 Spent

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 analyzed 320 adaptation and resilience investments across 12 countries totaling $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 recognize 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 monetized 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 centers 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 analyzed 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 stabilizing 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 standardized 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.” 

About World Resources Institute 
WRI is a trusted partner for change. Using research-based approaches, we work globally and in focus countries to meet people’s essential needs; to protect and restore nature; and to stabilize the climate and build resilient communities. We aim to fundamentally transform the way the world produces and uses food and energy and designs its cities to create a better future for all.  Founded in 1982, WRI has nearly 2,000 staff around the world, with country offices in Brazil, China, Colombia, India, Indonesia, Mexico, the United States, and regional offices in Africa and Europe.