McKinsey Global Institute: Climate adaptation could need $1.2 trillion a year by 2050. $690 billion of it is stuck

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After a sweltering summer on both sides of the Atlantic and a fall marked by storms in the Pacific, climate adaptation will be top of mind for many attending this year’s COP. Yet new research from the McKinsey Global Institute suggests that by 2050, the world could be leaving $690 billion in potential annual adaptation spending on the table. The problem is neither a lack of solutions nor economic value. Cooling systems can protect people from heat, irrigation can safeguard crops, and flood defenses can protect homes and businesses. On average, adaptation measures deliver benefits in avoided losses worth three times their cost. The question is how to turn that economic value into protection for those who need it. For adaptation to be “deployment ready,” someone must want and be able to implement it, and someone must be willing to finance it. Yet what makes economic sense for society does not always make financial sense for those expected to act. At 2°C of warming, which current…

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