As the impacts of climate change intensify, adaptation is gaining recognition and establishing itself as a key area of action for local authorities and investors.

The start of 2026 has been marked by a series of events highlighting climate change. February was the fifth warmest on record globally, with an estimated temperature anomaly of +1.49 °C compared to the pre-industrial period¹. This warmer climate encourages the formation of low-pressure systems and rainfall, whilst gusts of wind are becoming more frequent and intense. The examples are numerous. Over the last three months, western and south-western France experienced an exceptional spell of rain lasting 35 consecutive days, followed in January by a series of storms that swept across Europe: Gorreti in north-western France, Harry in Spain and Italy, and then Joseph in Portugal².

A need to adapt European infrastructure

This increase in extreme weather events is putting pressure on European infrastructure. A European Commission report published in January³ highlights that to reduce its exposure to the effects of climate change, Europe will need to mobilise €70 billion a year until 2050. Investment needs are concentrated mainly in the building and agricultural sectors: on the one hand to improve home insulation and adapt our cities, and on the other to develop agricultural systems that are more resilient to drought. The report also emphasises the crucial role of private finance and states that “projects such as building renovation or water-saving technologies can generate sufficient private returns to justify their implementation by businesses”.

Mitigation: real but still incomplete progress

This growing need for adaptation funding highlights the persistent difficulty our economies face in sufficiently reducing their greenhouse gas emissions. Whilst Europe is moving closer to its 2030 target of a 55% reduction⁴ (with a current trajectory of 54% and a 37.2% decrease in domestic emissions by 2024 compared to 1990)⁵, a significant proportion of its unaccounted-for indirect emissions continues to be imported from high-emitting countries. However, companies are making rapid progress in mapping out their pathways. More than 10,000 companies now have commitments validated by the Science Based Targets Initiative⁶, representing 40% of global market capitalisation. A significant proportion of these companies are based in Europe, particularly in France, as 85% of the CAC 40 have already had a reduction strategy validated by the initiative.

Adaptation driven by cities

Whilst the recent revision of European ambitions regarding the Green Deal⁷ suggests a certain retreat on social and environmental issues, local elected representatives are not letting up in their efforts. This is demonstrated by a recent study by the Shift Project⁸, which surveyed 109 French mayors from a range of political backgrounds, representing municipalities of very different sizes, demographic profiles and geographical contexts. The energy and climate transition is a central concern, regarded as one of the priority issues for the 2026 term of office. Among the adaptation measures deemed most relevant by mayors are taking future climate conditions into account in new construction, renovations and urban planning, accelerating the renovation of water networks, and raising public awareness and engagement.

One of the key findings of this consultation is that commitment to the transition depends neither on political affiliation nor on the type of area. 85% of elected representatives identifying as left-wing and 88% of those identifying as right-wing state that they have incorporated the transition into their term of office. The differences are just as small between different types of local authority: 86% of rural mayors, 87% of those in peri-urban areas and 91% of urban mayors say they are taking action in this regard.

Whilst the mayors surveyed are unanimous on the importance of climate adaptation policies, not all have the resources to match their ambitions. Indeed, small municipalities struggle to fund their adaptation efforts: 89% of elected representatives in municipalities with fewer than 500 inhabitants consider the renovation of water networks to be relevant, but only 59% of them have been able to carry it out. It is therefore on these municipalities that funding efforts, both public and private, should be focused.

Towards a more resilient economy

In this context, where local authorities are taking action despite sometimes limited resources, the role of financial actors becomes crucial in amplifying and supporting these regional initiatives. Investors thus have a key role to play in channelling capital towards projects that help strengthen the resilience of regions and infrastructure. In the face of intensifying climate impacts, adaptation is gradually emerging as a strategic pillar in its own right, complementing mitigation efforts, in the construction of a more robust and sustainable economy.