Global spending on climate adaptation is running at roughly a third of what protecting everyone exposed today would require. At 2°C of warming, the gap widens further still. The economic case for closing it is strong, and yet investment remains far short of what the science demands

In this episode, host Debbi Cheong speaks with Mekala Krishnan, co-author of McKinsey Global Institute’s Advancing Adaptation report, and Yuito Yamada, Senior Partner at McKinsey. Together they examine where the adaptation gap is largest, why heat and drought account for more than three quarters of spending needs, and how Asia sits at the centre of the challenge.

The return on adaptation investment is clear: the spend on resilience today returns roughly three times its cost in avoided damage, rising to seven as hazards worsen. The long-term value is clear, so what will it take to translate that case into action at the scale the problem demands?

Read the report on the McKinsey Global Institute website here: https://www.mckinsey.com/mgi/our-research/advancing-adaptation-mapping-costs-from-cooling-to-coastal-defenses