Significant changes in climate are already visible globally, and are expected to become more pronounced in the future. These will lead to wide ranging impacts on the natural and man-made environment across different sectors and regions, which in turn will lead to economic costs.
These economic costs of climate change are often known as the 'costs of inaction' and are increasingly helping to inform the policy debate. It is also evident that even if emissions of greenhouse gases stop today, changes in climate will continue for many decades. Therefore, in addition to mitigation, it is essential to develop adequate adaptive responses (adaptation) as a means of moderating damages or realising opportunities associated with climate change. To allow a fully informed debate on adaptation, there is a need to consider the economic aspects of adaptation.