The report, Economic Opportunities of Climate Adaptation for the UK, examines how growing demand for climate adaptation goods and services could support economic growth, strengthen resilience and position UK businesses to compete in a rapidly expanding global market.
Climate change is already affecting the UK. During the record-breaking heatwave of 2022, temperatures exceeded 40°C for the first time, causing disruption to transport networks, pressure on healthcare services and wider impacts across the economy. As climate risks continue to increase, demand for products and services that help communities, infrastructure and businesses adapt is expected to grow significantly.
The report estimates that cumulative global spending on climate adaptation could be around £3.5 trillion over the next decade. This presents a growth opportunity for innovative solutions prepared to meet the complex challenges of building resilience.
Importantly, as the new report highlights, the UK is not starting from scratch. It identifies 648 adaptation-related solutions already being provided by UK firms across sectors including infrastructure, engineering, data and analytics, finance, insurance and professional services.
Government Chief Scientific Adviser, Professor Dame Angela McLean said
As climate impacts become more frequent, adaptation is becoming a necessity. This report shows that it can also be an economic opportunity. The UK already has world-leading expertise in areas such as climate-risk analytics, insurance, engineering and advisory services. With the right ambition and investment, we can build resilience at home while helping UK businesses capture a share of a rapidly growing global market.
The report concludes by highlighting the key challenge areas for the UK to realise the upper bounds of the market sizing forecast. These include establishing clear standards, mobilising capital, building evidence in what interventions work, and strengthening routes to export markets for UK products.
