As climate hazards like floods and wildfires intensify — and global financial resources grow tighter — a new study by World Resources Institute (WRI) presents powerful evidence that bolstering funding for adaptation and resilience is not only urgent but also one of the smartest development investments available today.

The study, which analyzed 320 adaptation and resilience investments across 12 countries totaling $133 billion, finds that every $1 invested in adaptation and resilience generates more than $10 in benefits over ten years. This translates to potential returns of over $1.4 trillion, with average returns of 27%.

Some sectors record even greater returns. Health sector investments, for example, are projected to deliver returns of over 78%, driven by the high benefits of protecting lives from climate-related impacts like heat stress, malaria and dengue fever. Investments in disaster risk management, such as early warning systems, also showed exceptionally high returns derived from safeguarding lives and infrastructure.

The study defines adaptation investments as those aimed at reducing or managing physical climate risks, such as climate-smart agriculture, expanded health services and urban flood protection. However, in many cases, the resulting development and social benefits matched or exceeded the avoided losses from climate impacts.