Morphosis and Partners Launch Landmark Framework to Catalyse the Adaptation Economy
São Paulo, November 5, 2025 – Morphosis, in collaboration with the Paulson Institute, the Center for Sustainability Studies at Fundação Getulio Vargas, Itaúsa Institute, and Basilinna has released The Rise of the Adaptation Economy a first-of-its-kind integrated policy framework designed to accelerate investment and innovation in climate adaptation.
The world is on track for a temperature rise surging past the 1.5C target set by the Paris Agreement. Governments and businesses remain largely unprepared for this new reality. Adapting to intensifying climate impacts (responsible for over $300 billion in losses in 2024 alone) will require coordinated public and private action. But adaptation finance cannot scale without strong government leadership. Building inclusive prosperity in a climate-impacted world demands political will to put adaptation at the centre of national development strategies, mobilise public investment, and create the policy frameworks needed to secure investment capital.
To help guide governments in developing robust adaptation finance markets, Morphosis and its partners have developed the Adaptation Economy Framework. The framework provides a roadmap for how countries can design policies and incentives that attract investment, stimulate innovation, and mobilise capital toward adaptation-focused businesses and projects.
Simon Zadek, Managing Partner at Morphosis, said: “Policy action is needed to create markets that reward adaptation solution businesses, enabling them to attract private capital, innovate and scale, and drive down costs to ensure affordability.”
The report finds that adaptation frameworks could:
Generate over 100 million new jobs globally by 2030, particularly across sectors such as infrastructure, agriculture, and financial services
Enable more accurate pricing of climate risks and nature’s value
Unlock a private equity investment opportunity estimated at $1.3 trillion by 2030
While renewable energy has grown into a multi-trillion-dollar industry through targeted policies, adaptation markets remain fragmented and undervalued. Every $1 invested in adaptation can yield up to $5 in avoided losses and economic benefits, underscoring the strong return potential of adaptation-oriented investments.
Deborah Lehr, Chair & CEO of Basilinna and Vice-Chairman at the Paulson Institute, commented: “Adaptation is about building stronger, more competitive economies that can thrive in a changing world. This framework shows how smart investment and collaboration can transform climate risk into long-term growth. But it will require strong government leadership for success.”
Morphosis and its partners emphasise that advancing adaptation markets is not only critical for mitigating climate shocks, but also for driving job creation, innovation, and economic stability in both emerging and developed economies.
Marcelo Furtado, Executive Director of Itaúsa Institute and Head of Sustainability at Itaúsa Holding, concludes: “As the world moves beyond 1.5°C, adaptation becomes the defining imperative.”
The full report, The Rise of the Adaptation Economy: Investing in Adaptation and Resilience in a World Beyond 1.5°C and associated technical papers, including Brazil and China case studies, are available online at Morphosis.
Press & Media Enquiries:
Contact: media@morphosis.solutions
About Morphosis: Morphosis is an insight-led investment business for a climate-impacted world of 1.5°C and beyond. A lighthouse for the Adaptation Economy, Morphosis orchestrates a network of investors, policy stakeholders and adaptation solution businesses, to deliver inclusive transformative adaptation results at scale.
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