Exploring opportunities to build a climate resilient economy
Climate adaptation policy has traditionally been framed as an approach to managing risk and avoiding loss, but this framing is changing. Across Scottish and European policy, adaptation is increasingly recognised as an economic opportunity that can support resilience, innovation and new markets.
This report provides evidence on potential economic opportunities links to climate adaptation in Scotland, how these markets are likely to evolve over time, and where Scotland has – or could build – a competitive advantage.
Key findings
- Climate adaptation could create economic opportunities across 14 sectors of Scotland’s economy.
- The strongest opportunities are likely to come from goods, services and expertise that help organisations manage climate risks such as flooding, overheating, water shortages and supply chain disruption.
- Three sectors stand out as priorities:
- the built environment, including building retrofit, flood resilience, drainage, climate-informed design, risk analytics and nature-based solutions.
- food and agriculture, including climate-resilient crops, water management, digital farming technologies, advisory services and landscape-scale land management.
- finance and insurance, including climate risk analytics, new insurance products, support for climate reporting, and place-based lending and investment.
- Scotland’s strongest opportunities will likely come from combining technical expertise, reliable data, skilled workers and coordinated local action.
The opportunities across the sectors, and within the prioritised sectors, are illustrated in this visual summary.
Recommendations
- Improve data, standards and independent assurance so resilience measures are recognised in planning, insurance and financial decision-making.
- Develop the workforce needed for long-term adaptation, including technical, analytical and local delivery skills.
- Provide clear, consistent and long-term policies that support investment in climate resilience.
- Shift incentives away from short-term, lowest-cost decisions towards long-term climate resilience.
- Support larger-scale, place-based projects to reduce risk and attract investment.
- Strengthen collaboration between government, businesses, investors and local partners to grow Scotland’s adaptation economy.
For further information, please read the full report.
If you require the report or annex in an alternative format, such as a Word document, please contact info@climatexchange.org.uk or 0131 651 4783.