How adaptation drives development and growth

This brief provides on overview of work that addresses key socioeconomic vulnerabilities and that addresses key socioeconomic vulnerabilities and contributes to resilient economic growth. contributes to resilient economic growth. It is often assumed that climate adaptation investments yield economic benefits by reducing the impacts of extreme events – such as flooding and drought. While this is true, with an overwhelming return of investment in terms of damage avoided, climate adaptation investments also bring wider economic, social and environmental benefits.

These combined benefits often drive return of investment much more than the avoided losses. Economic benefits include, for example, increased efficiency and productivity, higher incomes, and new investments motivated by the reduced level of physical risk in the local economy. Socio-environmental benefits include increased well-being, health improvements and community cohesion (Brandon et al, 2025).