UK ranked second in the world for climate change adaptation technologies, study finds

The UK is ranked second in the world for comparative advantages in climate change adaptation technologies (CCATs) and services, according to a new study published today (14 May 2026) by the London School of Economics and Political Science and Imperial College London.

In ‘Catalysing Climate Resilience’, the authors find that the UK also ranks fifth globally on specialisation in adaptation technologies related to engineering, second for life sciences and third for ‘indirect’ technologies, such as weather forecasting, climate simulation, assessing water resources and monitoring invasive species.

Climate change adaptation technologies and services are vital for building resilience in the UK and around the world against current and future climate-related shocks. They are designed to protect lives, livelihoods, infrastructure and natural resources from the impacts of climate-related hazards.

In the report, the authors state that “the UK is well placed to compete in global markets for adaptation technologies, and that targeted industrial policy support could help translate existing technological leadership into commercial and export advantage”.

The UK’s innovation ecosystem for climate change adaptation technologies and services is growing, but with many small firms operating in these markets, policy is likely to play a role in creating commercialisation pathways and enabling their scale-up. Sustained market growth will depend heavily on regulatory and policy action to create demand, highlighting the key role for the UK government to capitalise on this strength.

Globally, there is an urgent need for substantial investment in climate change adaptation. By 2030, the global investment required to adapt to the impacts of climate change is expected to reach up to US$1.3 trillion annually, with the UK projected to need to invest over £10 billion each year.

The authors point out that “the UK is strategically positioned to meet growing demand, leveraging existing strengths across relevant sectors, including the life sciences, engineering, climate science, and financial and professional services”.

The authors recommend domestic policymakers highlight climate change adaptation as a key aspect of resilience in the UK’s Modern Industrial Strategy, develop a dedicated adaptation investment strategy, and support scale-up for innovators in adaptation technologies and services.

This report is a partnership between the Centre for Economic Transition Expertise (CETEx), the Grantham Research Institute on Climate Change and the Environment and the Centre for Economic Performance (CEP), all at the London School of Economics and Political Science (LSE), and the Grantham Institute – Climate Change and the Environment at Imperial College London. 

Daisy Jameson, Senior Policy Fellow at the Centre for Economic Transition Expertise (CETEx) at the London School of Economics and Political Science, said: 

“The UK is experiencing increasing impacts from climate change, including more frequent and severe floods, heatwaves and storms.

“There is an economic, social and environmental imperative to scale up and innovate in adaptation-related goods and services, especially in those areas where the UK has an existing and potential comparative advantage.

“The UK is well-placed to become a world leader in climate change adaptation technologies and services but realising that potential will require deliberate and sustained policy intervention.”

Raffaele Della Croce, Visiting Professor at the Department of Civil and Environmental Engineering at Imperial College University and Grantham Institute Associate, said:

“There is an opportunity in the UK to safeguard critical domestic supply chains and infrastructure from cascading global shocks, while simultaneously exporting financial resilience to other countries.

“Our research shows that the UK is a world leader on adaptation technologies, it just needs harnessing through coordinated investment.  

“The UK’s services strengths are also highly relevant. In particular, the UK’s professional and business services, insurance and wider adaptation financial services sectors are well-positioned to respond to the growing demand for climate adaptation advisory work.“

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