Costs of Adaptation vs Costs of Inaction

The main objective of this report is to provide the EEA with scientific, theoretical and practical knowledge on two key concepts, namely adaptation costs and inaction costs, and how they influence adaptation finance in a domestic context. The report does not focus on methodologies at the project level, but rather looks at frameworks or programmes of measures, such as National Adaptation Plans (NAPs). This knowledge in the form of a background report also informs a briefing, to strengthen resilience to climate change and thus promote compliance with the 2021 EU Adaptation Strategy towards 2050. The EEA briefing focuses on domestic financing of adaptation, comparing the efficiency and effectiveness of adaptation measures versus the costs of inaction.

This report further elaborates on the types of risk, the ancillary impacts of adaptation, and how to integrate the knowledge in practical ways for European countries. This will help identify strategies for countries to operationalize the concepts of adaptation costs and inaction costs, and for readers to understand in a clear, concise and explanatory manner the different concepts surrounding adaptation finance. The study concludes by putting into perspective the costs of adaptation versus the costs of inaction, through describing the current state of knowledge, remaining gap