Investing in climate adaptation yields substantial economic, environmental and social benefits, with an average return of $10.50 for every $1 invested, according to a new working paper released Thursday by the World Resources Institute.

The report, titled Strengthening the Investment Case for Climate Adaptation: A Triple Dividend Approach, analyzed 320 adaptation projects across 12 countries and found that adaptation is not only a climate imperative but also a strategic development investment.

The study applied the “Triple Dividend of Resilience” framework to assess benefits across three dimensions: avoided losses from disasters, induced economic growth, and socioenvironmental gains.

Notably, two-thirds of the monetized benefits arose independently of climate-related disasters, thereby bolstering the case for proactive, rather than reactive, adaptation.

“These findings confirm that good adaptation is good development,” said Carter Brandon, lead author of the report. “Adaptation investments help build economic resilience and foster long-term sustainability, even in the absence of climate shocks.”

$133B in Investments Could Generate $1.4T in Benefits

The evaluated projects, spanning agriculture, infrastructure, water, and health sectors, had a combined cost of $133 billion. These investments are projected to generate up to $1.4 trillion in benefits over a decade, with an average economic internal rate of return of 27 percent.

Health and disaster risk management projects yielded the highest returns, driven by the avoidance of mortality and reduced emergency costs.

Meanwhile, sustainable agriculture and forestry investments scored highly due to their poverty-reduction effects and mitigation co-benefits.

Despite high projected returns, the report notes that nearly half of the evaluated projects failed to quantify even one of the three dividends.

Only 8 percent fully monetized all three. The lack of standardized economic appraisals, especially in developing nations, continues to limit transparency and investor confidence.

However, projects that did assess all dividends revealed balanced benefit streams, approximately one-third each, demonstrating adaptation’s robust economic case even under uncertainty.

Mitigation Synergies Create New Financing Pathways

Notably, 45 percent of adaptation investments also yielded climate mitigation benefits, particularly in energy, agriculture and forestry sectors. This dual impact opens doors to innovative financing, including carbon credits and blended finance models.

“Framing adaptation as an enabler of broader development and emissions goals is critical,” said co-author Aarushi Aggarwal. “It’s time to move beyond the outdated view that adaptation is a cost—it’s a strategic investment.”

The WRI team calls on multilateral development banks, governments, and donors to:

  • Adopt the TDR framework in project appraisals to capture full value.
  • Develop a common reporting standard for adaptation benefits.
  • Incentivize private investment by aligning benefits with investor profiles.
  • Emphasize cross-sectoral synergies between adaptation and mitigation.

With adaptation financing needs estimated between $187 billion and $359 billion annually, the current $70 billion in tracked public finance is far from sufficient. But the data makes a compelling case for scaling up.

“Climate resilience must be central to all development planning,” said Harald Heubaum, co-author. “We have the data, the methodology, and now a stronger business case. What we need next is a bold investment.”

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