Private sector investments in climate change adaptation

Tatiana Filatova (), Alessandro Taberna, Theodoros Chatzivasileiadis and Ignasi Cortés Arbués
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Tatiana Filatova: Delft University of Technology
Alessandro Taberna: Delft University of Technology
Theodoros Chatzivasileiadis: Delft University of Technology
Ignasi Cortés Arbués: Delft University of Technology

Nature Climate Change, 2025, vol. 15, issue 11, 1249-1256

Abstract: Abstract Amid escalating climate impacts, understanding private sector adaptation is critical. Here using data of actual adaptation expenditures from nearly 300,000 businesses in five coastal regions, we reveal variations in private sector adaptation across sectors and regions. The agriculture sector leads in adaptation efforts, while transport, construction and utilities—that is potential sources of system-wide cascading effects—lag. Small, medium and large businesses prioritize hard and soft measures, barely investing in ecosystem-based adaptations. Adding to the multifaceted discourse on adaptation effectiveness, our panel data reveal positive, although inelastic in the short run, relationships between private sector adaptations and aggregate regional economic performance. Business adaptations in the construction, transport and health sectors associate positively with regional economic performance, with the accommodation and food services sector yielding the highest return per euro invested in adaptation. Combining these findings with existing assessments of adaptation could support the development of societally effective adaptation strategies.

Date: 2025
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DOI: 10.1038/s41558-025-02423-w

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