Climate adaptation market projected to reach $1.3 trillion annually by 2030

Global demand for climate adaptation and resilience solutions is projected to reach between $0.5 trillion and $1.3 trillion annually by 2030. To address this, Schroders and the California Public Employees’ Retirement System (CalPERS) have launched a new investment framework. The framework evaluates 102 different activities, including resilient infrastructure, water systems, and early-warning technologies, to help investors distinguish between broad economic value and potential commercial returns.

In Europe, spending on climate resilience is expected to exceed €500 billion ($571 billion) through 2035. Bloomberg Intelligence reports that climate spending is shifting from reactive disaster repair to a structural adaptation cycle. This includes rebuilding after extreme weather and investing in defenses against future impacts. The European Commission has estimated that the EU requires approximately €70 billion in annual adaptation investment through 2050, while the UK’s Climate Change Committee estimates a requirement of £11 billion annually.

This shift is expected to drive demand across various sectors, including diversified industrials, flood protection, HVAC systems for cooling, and climate-smart agriculture.