McKinsey on Climate Adaptation: The Global Resilience Gap

Climate adaptation is emerging as one of the most critical—and least understood—challenges in the climate transition. Mekala Krishnan, Partner at the McKinsey Global Institute, joins Climate Rising to discuss McKinsey’s new research assessing adaptation needs, costs, and gaps around the world. The conversation explores why the world is already underinvesting in resilience, and how climate risks are distributed unevenly across geographies and income levels. Mekala explains the concept of the “resiliency gap,” highlighting that billions of people remain under-protected despite the existence of cost-effective solutions. The episode also examines how climate risks will evolve in the coming decades, why adaptation spending needs could rise to over $1 trillion annually, and what barriers—beyond finance—are preventing action. The discussion concludes with insights into how businesses, governments, and financial institutions are beginning to respond, and what it will take to scale adaptation globally.