While the debate around climate protection measures (mitigation) continues to dominate, the need for climate adaptation is becoming increasingly urgent. Adaptation doesn’t protect us decades from now—it protects us immediately, and it opens up enormous market opportunities. Singapore’s sovereign wealth fund (GIC) refers to it as an inevitable investment opportunity worth up to 9 trillion USD by 2050.
In the Handelsblatt webinar ADAPT to WIN, three experts joined moderator Daniel Schmitz-Remberg and numerous participants to discuss the urgency, business case, and innovation dynamics of climate adaptation:
- Kai Karolin Wunsch, Senior Manager Strategic Product Development at Munich Re Risk Management Partners
- Anja Rath, Managing Director at PT1, with over 20 years of venture capital experience and analysis of more than 4,000 startups for the current “Infrastructure, Energy and Buildings” VC fund
- Felix Kaiser, Founder of ResistVC, the first angel syndicate focused on climate adaptation
Key message: Adaptation is no longer optional—it’s a necessity. And it’s a growth market that companies and investors must tap into now.
1. Recognizing risks: Why adaptation matters in Europe now
“Many say adaptation takes away the hope that we can still succeed with climate protection. For me, it’s the opposite: adaptation is the hope—because we can adapt,” said moderator Daniel Schmitz-Remberg as he opened the webinar.
This set the tone: In addition to decarbonization, we urgently need strategies to protect people, businesses, and value chains from the impacts of climate change.
Kai Karolin Wunsch painted a clear picture: “We now see virtually all relevant climate risks here in Europe.” These include:
- Heatwaves over 40°C affecting German cities
- Flooding and heavy rainfall, as recently seen in Bavaria
- Droughts threatening agriculture and energy supply
- Wildfires increasingly affecting Central Europe
- Rising sea levels, for example in the Netherlands
- Glacier melt and Glacial Lake Outburst Floods—sudden flood waves from bursting glacial lakes
Her message: These risks are measurable and tangible today. They threaten assets, infrastructure, and supply chains. “It’s not just about economic damage—it’s also about biodiversity and human lives.”
For companies, this means: Ignoring risks doesn’t just lead to operational disruptions—it can also result in reputational and legal consequences. At the same time, a market for solutions is emerging—from data platforms and cooling technologies to resilient materials.
2. Understanding the business case: Why adaptation pays off
The central question for many companies is: Is it worth it?
Anja Rath gave a clear answer: “Ultimately, it’s about reducing risks, seizing opportunities, and avoiding costs.” Early warning systems can prevent billions in damages, new materials can extend infrastructure lifespans, and resilient energy systems can secure supply.
Kai Karolin Wunsch summed it up: “Adaptation costs are often in the low millions, while damages from extreme weather events can be many times higher. We call this avoided losses—damages that are prevented through adaptation measures.”
Regulatory developments also strengthen the business case. Banks must account for climate risks in their balance sheets, and companies must report on physical risks. Adaptation is becoming not only economically sensible but also regulatory necessary.
Yet only a small fraction of capital currently flows into this area. “Only around three percent of VC funding goes into adaptation,” said Rath. Reasons include a lack of standards, unclear metrics, and low visibility.
Rath also pointed out that blended finance could be key: “When public funds or multilateral institutions take on part of the risk, private capital is mobilized. That way, we can scale much faster.” Public and private funding must be considered together to establish adaptation as an asset class.
Felix Kaiser added: “The business case is already here. Adaptation is cheaper than doing nothing. The technologies are market-ready, and the demand is huge. The question is: Why do so few see it?”
For investors, this presents a historic opportunity: Those who invest now are not only avoiding risks—they’re investing in a future market.
3. Innovation & Ecosystem: How startups and investors are shaping the market
Climate adaptation is also a field of innovation. Startups are bringing new solutions to market, but the framework conditions in Europe remain challenging.
Felix Kaiser shared insights from his experience: “We have fantastic research in Europe, but we often get stuck in pilot projects. In the U.S., I see things scaling much faster.” With ResistVC, he founded an angel syndicate that invests exclusively in adaptation—a first in Europe.
He highlighted two portfolio examples:
- N4EA (USA): A software that predicts supply chain disruptions—such as blocked ports or rivers that are no longer navigable. This allows companies to take timely countermeasures.
- Alganize (Germany): Microalgae-based biostimulants that make plants more resilient to heat and drought, while reducing the need for pesticides and fertilizers.
“These are real adaptation solutions: They make systems more robust—and they deliver immediate returns,” said Kaiser.
Anja Rath identified the greatest opportunities in three clusters:
- Data Collection & Monitoring – satellites, drones, IoT, AI
- Resilient Infrastructure & Energy Systems – decentralized grids, storage technologies
- New Materials – heat- and moisture-resistant innovations
But the ecosystem is key: “Adaptation is a cross-cutting issue. Startups need partners, pilot projects, and shared standards,” Rath emphasized.
Kai Karolin Wunsch also stressed the importance of data: “Data is the foundation of every risk analysis and decision. It enables us to understand, assess, and effectively manage climate risks. Without reliable data, successful adaptation is impossible.”
To turn pilot projects into scalable solutions, more capital, regulatory clarity, and collaboration between corporates, startups, and policymakers are needed.
Wrap-up: Three key messages for action
At the end of the webinar, moderator Daniel Schmitz-Remberg summarized the discussion with three core messages:
- Adaptation is a growth market, not just risk mitigation.
- There are enormous investment and innovation opportunities — but Europe suffers from a capital and awareness gap.
- Collaboration is crucial: Companies, startups, investors, and policymakers must work more closely together.
The closing statements from the panelists were clear:
- Kai Karolin Wunsch: “Adaptation is no longer optional — it’s a necessity. Companies should act now, not in ten years.”
- Anja Rath: “Adaptation is a huge opportunity, a market that’s just beginning. Those who get in early can shape real transformation.”
- Felix Kaiser: “Dare to invest in adaptation — whether as a company, investor, or startup. The demand is massive, and the solutions are already here.”
Conclusion
The Handelsblatt webinar ADAPT to WIN made one thing clear: Climate adaptation is no longer a niche topic — it’s a decisive factor for success. Companies that act now not only protect assets and employees but also open up new markets.
Germany and Europe have the chance to play a leading global role in adaptation — if they have the courage to invest in solutions that are already available today.
Or, as Schmitz-Remberg put it: “Climate risks are real and increasing. Adaptation is possible—and it pays off.”