What's Happening?
A recent report titled 'Returns on Resilience' highlights the significant economic and financial benefits of investing in climate adaptation. The report, developed by a consortium of research institutions and coordinated by Systemiq, was unveiled at the World
Bank Annual General Meetings. It suggests that targeted investments in climate and nature resilience could create over 280 million jobs in emerging markets by 2035, boost GDP, and unlock a trillion-dollar market opportunity. The report emphasizes that every dollar invested in climate adaptation could yield more than four dollars in benefits. Despite these findings, the report notes a disparity in capital allocation, with $87 spent on non-resilient infrastructure for every $1 on resilient infrastructure. The report also warns of potential economic losses due to climate change, projecting up to $1.2 trillion in losses for major companies by the 2050s if current trends continue.
Why It's Important?
The report underscores the critical need for strategic investments in climate adaptation to safeguard economic stability and promote sustainable development. By framing resilience as a strategic investment rather than a cost, the report aims to shift the global agenda towards proactive measures that protect vulnerable populations and stabilize economies. The potential job creation and GDP growth highlight the economic incentives for countries and businesses to prioritize climate adaptation. However, the current imbalance in infrastructure investment suggests a need for policy shifts to redirect capital towards resilience-enhancing projects. This could have significant implications for industries reliant on stable supply chains and for communities vulnerable to climate impacts.
What's Next?
The report includes a roadmap for action, proposing multilateral cooperation areas to be discussed at COP30. It identifies 15 scalable resilience investments across sectors such as food, water, health, and infrastructure. With the Brazilian COP30 Presidency focusing on adaptation and resilience, there is an opportunity to turn commitments into actionable strategies. The report calls for leaders to integrate resilience into core strategies, potentially influencing future policy decisions and investment priorities. The emphasis on resilience could lead to increased funding for climate-smart agriculture, mangrove restoration, and early warning systems, among other initiatives.
