Climate adaptation is as imperative as mitigation

Debates about climate policy tend to focus on reducing greenhouse gas emissions. This makes sense, given that they are the primary cause of climate change. But global warming is expected to continue under even the most optimistic scenarios, implying that there is an urgent need for comprehensive strategies to minimize the economic costs, public safety risks, and health threats associated with the escalating climate crisis.
While some experts argue that full climate adaptation is impossible, owing to the significant risks posed by global warming, this view is misleading. Admittedly, adaptation alone cannot offset the worst effects of climate change, and current efforts to reduce global greenhouse gas emissions must be ramped up. But overlooking the need to develop, implement, and invest in strategies aimed at protecting businesses, households and communities from the inevitable consequences of a warming planet would be profoundly irresponsible.
Flood protection is a prime example. As inundations become more frequent and severe, the restoration of floodplains and other proactive measures have become increasingly important. Long-term adaptation should also play a central role in post-disaster reconstruction projects. Instead of repeatedly repairing houses damaged by floods, for example, it might be more prudent to rebuild them in areas less prone to flooding.
Adaptation efforts are only as effective as the mechanisms to finance them. While many taxpayers understandably support the funding of reconstruction efforts, doing so can create incentives for construction in vulnerable areas. Instead, these funds would be better spent on measures that protect communities against future flooding; not just building new houses in safer areas, but also investing in targeted research and innovation aimed at helping the sectors affected by climate change, particularly agriculture, adapt to the threats.
Increasingly dangerous heatwaves also underscore the urgent need for adaptation measures. Although record-breaking temperatures pose significant health risks, particularly to the elderly, pregnant women, and people with preexisting conditions, some countries, such as Germany, are still reluctant to invest in air-conditioning systems and other cooling methods. Yet such systems do not require fossil fuels; they can be powered by solar energy, which is abundant during hot periods.

By placing adaptation measures at the heart of climate policies, alongside mitigation efforts, we can create a future that is both resilient and equitable. 

Clemens Fuest and Maria Waldinger

Extreme heat is especially risky for outdoor workers, highlighting the need to update occupational health and safety laws. There must be a requirement on companies to put measures in place to protect their employees, such as provision of shaded areas and access to drinking water at all times.
Given that people on low incomes often work in high-risk conditions, climate adaptation offers far-reaching social benefits. The ability to implement such measures is, however, largely restricted to households, municipalities, regions, and countries with sufficient financial resources and technical expertise.
Without adequate adaptation strategies and financing mechanisms, impoverished individuals and communities will disproportionately bear the brunt of climate change, further deepening economic and social disparities locally and globally.
In principle, households and businesses should approach adaptation like any other investment decision. Instead of pursuing every available option, they should focus on those that offer the greatest value, similar to how an entrepreneur would evaluate various expenditures.
Certainly, adaptation efforts face numerous obstacles, including uncertainty about the future trajectory of climate change and the high costs associated with modifying existing structures and processes. Moreover, the scarcity of information about effective adaptation measures, and how they might be implemented within existing legal frameworks, could drive up costs.
All of this could depress investment in adaptation, especially since the benefits might only be realized in the medium-to-long term.
Nevertheless, governments and the private sector must ensure climate adaptation is a top priority. By anticipating the risks and taking proactive steps to adjust their operations, companies could reduce implementation costs. Meanwhile, policymakers must invest heavily in building resilient infrastructure, supporting research and innovation, and disseminating vital information to households, businesses, and local authorities to help them prepare for various climate-related challenges, including floods, heat waves and other extreme weather events.
Adaptation is not only a practical necessity, but it is also a moral imperative. While the reduction of greenhouse gas emissions is necessary, adaptation is equally important to ensure that the world’s most vulnerable populations do not bear the brunt of the most devastating effects of climate change.
By placing adaptation measures at the heart of climate policies, alongside mitigation efforts, we can create a future that is both resilient and equitable.

• Clemens Fuest, the president of the Ifo Institute, is a professor of economics at the University of Munich // Maria Waldinger is a climate economist at the Ifo Institute in Munich. ©Project Syndicate