Adapting to a warmer planet: why climate change adaptation is crucial

As the impacts of climate change become increasingly evident, it’s clear that mitigation alone won’t be enough. We need to adapt to the changes that are already happening and those that are yet to come. ​

Proactive adaptation measures are urgently needed to reduce our exposure and vulnerability.

Extreme weather, increased humidity, heavy rainfall, prolonged droughts, and rising sea levels are impacting our infrastructure, ecosystems, and human wellbeing. ​Even with ambitious mitigation efforts, some climate risks are unavoidable. ​ ​

The Intergovernmental Panel on Climate Change identifies three key areas where the risks from global warming are most pronounced: cities and settlements, the natural environment, and human health and wellbeing. ​

Cities are particularly vulnerable due to their dense populations and built-up environments.

Risks include extreme weather events, the urban heat island effect, and forced migration.​ By 2050, around 970 cities could experience summer temperatures above 35°C, compared to just 350 cities in 2018. ​

Adaptation solutions for cities include infrastructure improvements such as air conditioning, cool surface treatments, and climate-responsive buildings. Transport systems also need to be resilient, with a focus on low-cost, low-tech solutions like cycling and walking, as well as the integration of technology into transport infrastructure. ​

Ecosystems underpin economies and provide essential services. ​

However, they are at risk from extreme heat, natural disasters, water scarcity, and biodiversity loss. ​Adaptation in this area includes climate-smart agriculture, agroecology, and bio-based solutions from agricultural chemical companies. ​

Preserving natural capital is crucial for industries like forestry, construction, and tourism. ​For example, one billion people rely on fish as their primary source of protein, but fish stocks are in severe decline. ​Biodiversity loss also threatens drug production and discovery, with 11% of essential medicines derived from flowering plants. ​

Climate change poses significant health risks.

From extreme weather and natural disasters to the spread of vector-borne diseases like malaria and dengue. ​

Adaptation solutions include air pollutant warnings, telehealth, and resilient hospital infrastructure. ​These efforts are crucial for maintaining labour productivity and overall wellbeing. ​For instance, heat exposure led to 470 billion potential labour hours lost globally in 2021. ​

Current planning and investments are inadequate to meet the accelerating impacts of climate change.

This is according to recent United Nations Environment Programme’s Adaptation Gap Reports. Progress on climate adaptation is slowing when it should be accelerating to keep up with increasing climate change impacts. Adaptation investment can deliver a “triple dividend” by avoiding future losses, generating economic gains through innovation, and providing social and environmental benefits. ​

Increased financing is essential for scaling up adaptation solutions. ​

Public-private partnerships and green bonds targeting climate resilience are emerging as key routes to increased investment. Locally we have seen Auckland Council issue $3.6 billion in green bonds, with proceeds invested in clean transportation, sustainable water management, and renewable energy. ​

Adapting to climate change is not just about survival; it’s about thriving in a warmer world.

By investing in adaptation solutions, we can build more resilient cities, protect our natural environment, and safeguard human health. ​Early investment in these areas can provide long-term returns and help transform industries to be more innovative and resilient. ​The time to act is now. ​Let’s start building a climate-resilient future today.

This is an excerpt of an article published for clients only. Craigs Investment Partners clients can view the full version of this article by logging in to the client portal.

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