115 Q UA RT E R _ 0 2 _ 2 0 2 6 The benefits of adaptation far outweigh its costs. Yet the world today spends just one-third of the amount needed to protect everyone exposed to hazards to developed-economy standards. What would it cost to adapt as the Earth warms, and how much will get spent? Advancing Adaptation: Mapping Costs from Cooling to Coastal Defenses - - - - Humans have adapted to their local climates for millennia. Today, many proven, cost- effective solutions exist to address extreme weather that affects roughly 40 percent of the Earth’s landmass. Research by the McKinsey Global Institute finds that the world spends $190 billion to deploy 20 tried-and-true adaptation measures ranging from fans and air conditioners to irrigation systems and sea dikes, which protect about one billion people exposed to heat, wildfire, drought, and flooding. Yet despite the benefits of adaptation exceed ing its costs, the world still has a resiliency gap, leaving three billion people with limited or no protection. Protecting these people at standards established in developed economies would cost an additional $350 billion a year, or roughly $120 per person. And going forward, as the global tempera ture climbs, the pattern and occurrence of hazards will shift, changing adaptation needs. These findings are based on a first-of-its-kind comprehensive, pixel-level, geospatial assess ment of adaptation today and through 2050, which is when current emissions trajectories suggest the world will have warmed to 2°C. The following selection of exhibits equips individuals, businesses, and policymakers with an understand ing of adaptation needs, as well as the associated costs and benefits, enabling informed action on resilience now and over the long term. by Mekala Krishnan, Olivia White, Sylvain Johansson, Sven Smit, Annabel Farr, and Kanmani Chockalingam