Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/311171 
Year of Publication: 
2024
Series/Report no.: 
ECB Working Paper No. 3005
Publisher: 
European Central Bank (ECB), Frankfurt a. M.
Abstract: 
Adaptation needs are vast, rising fast and difficult to determine in their entirety, especially with uncertain adverse scenarios due to climate inertia and implementation lags. Adaptation is hindered by a lack of a unified understanding of what it necessitates; the challenge in pointing out its costs, benefits, and residual risks; insufficiently prescriptive policy and legal frameworks; and the growing financing gap. Conversely, we now have better granular climate data to study the impacts of climate hazards and forecast climate risks; there is awareness that adaptation choices must be dynamic and reactive; and there is an increasing pool of case studies from which to learn. There is evidence that efficient adaptation investments can yield "triple-dividends" helping to close the financing gap. There is a need to absorb and smooth the impacts of rising extreme climate events. Innovative financial instruments, such as catastrophe bonds and climate bonds, might support challenged insurance coverages.
Subjects: 
climate change
environmental economics
climate disasters
climate adaptation
resilience
climate financing
JEL: 
E52
Q54
Persistent Identifier of the first edition: 
ISBN: 
978-92-899-6936-9
Document Type: 
Working Paper

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