Science 391(6786) , pp.662-664, 2026

Clare Balboni, Lint Barrage, Ian W. Bolliger, Judson Boomhower, Delavane Diaz, Hannah Druckenmiller, Teevrat Garg, Simon Greenhill, Miyuki Hino, Harrison Hong, Solomon Hsiang, Carolyn Kousky, Jeremy Martinich, Ishan Nath, Kimberly L. Oremus, R. Jisung Park, Toan Phan, Jonathan Proctor, Will Rafey, Marcus C. Sarofim, Wolfram Schlenker and Benjamin Simon

Published 12 February 2026

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This Science paper (2026) argues that climate adaptation needs to complement emissions reduction, as climate impacts will persist even under ambitious mitigation scenarios. The authors-including Clare Balboni (LSE)-highlight that while individuals and firms already have strong incentives to adapt to climate risks, actual adaptation remains uneven and insufficient. The article emphasises that markets can play a central role in enabling effective adaptation, by helping people respond to climate shocks through mechanisms such as migration, insurance, investment, and changing production decisions. Well-functioning markets can allocate resources efficiently, allowing households and firms to adjust more quickly to environmental changes. However, the authors stress that markets alone are not enough. Barriers such as lack of information, credit constraints, and weak institutions can limit adaptive responses, particularly in low-income settings. As a result, policy interventions are needed to support and strengthen markets-for example through improved data, financial access, and regulatory frameworks. Overall, the paper argues that combining markets with well-designed policy is key to building resilience, offering a framework for how governments can support long-term adaptation to climate change alongside mitigation efforts.