The Growth Of The Global Adaptation Economy

Around the world, there is a rapidly growing need for solutions to tackle the physical impacts of climate change. In response, we are seeing an emergence of innovative start-ups and micro, small and medium enterprises (MSMEs), particularly in the Global South, providing a wide range of products and services aimed at tackling different climate threats across different communities and sectors of the economy, tailored to local contexts and needs. Examples of these include:

• Low-cost climate risk mapping tools, combining open-source earth observation data with cheap drone technology,

• New crop types, seed treatments and smart irrigation equipment that perform better under adverse conditions,

• Nature-based cooling solutions for buildings and urban areas,

These businesses represent a significant component of the new ‘adaptation economy’ that is steadily growing around the world and providing an exciting opportunity for investors.

At the same time, the adaptation economy is a tiny fraction of the size of…