A detailed plan of action, setting out how, when and by whom specific adaptation measures should be implemented is crucial to achieve adaptation on the ground. To develop this plan of action it is important to identify potential adaptation options (in this step) and narrow them down (see Step 4).

 This step assists local authorities and Covenant of Mayors signatory cities to identify potential adaptation options and collect relevant information for these options in a portfolio which will facilitate further prioritisation of the options.

Adaptation options are the potential adaptation actions that can address the previously identified climate challenges. Furthermore, adaptation options may allow taking advantage of any positive opportunities that arise from climate change and/or eventual further benefits these actions can create. Adaptation options can range from actions that build adaptive capacity (e.g. knowledge creation and sharing information, creating supportive institutional framework) or establish management systems and supportive mechanisms (e.g. better land management planning, insurance mechanisms) to adaptation actions implemented on the ground, often referred to as "grey" (infrastructure) or "green" (ecosystem-based) measures. This step facilitates an exploration of potential adaptation options and helps to identify relevant actions.

See also Chapter 3 of the EEA report Urban adaptation in Europe: how cities and towns respond to climate change for further information on the effectiveness of adaptation options for different climate impacts.

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