Lisbon, Feb. 2, 2026 (Lusa) - Portugal invests around US$200 million (€171 million) annually in climate change adaptation measures, which corresponds to 43% of the amount needed to protect against extreme weather events, according to the McKinsey Global Institute.
"Portugal currently invests around $200 million per year in climate change adaptation measures, an amount that corresponds to only 43% of the investment needed to protect the country from the impacts of extreme weather events in line with developed economies," concluded the McKinsey Global Institute (MGI) in its study “Advancing adaptation: Mapping costs from cooling to coastal defences”.
Even so, as it pointed out in a statement, the amount invested by Portugal is 10 percentage points above the global average.
A quarter of the country is currently exposed to climate risks such as floods, forest fires and drought, covering around 7% of the Portuguese population.
According to this analysis, 22% of the coastline is protected in areas exposed to flooding and 30% of power lines are buried in areas at risk of fire.
In a scenario of global warming of 1.5°C predicted for 2030, around 95% of the population could be exposed to climate risks.
This percentage rises to 96% in 2050, in a scenario of global warming of 2°C.
"To respond to this level of exposure, the current cost of adaptation in Portugal could increase to around $2 billion (around €1.7 billion) per year by 2050, equivalent to ten times the current investment," warned the institute.
A large part (68%) of this amount is related to adaptation to heat waves and drought.
Even if protection levels remain unchanged, Portugal's investment will cover just over half (52%) of future needs.
This study is based on a geospatial analysis and the evaluation of 20 adaptation measures, such as cooling and irrigation solutions and protective infrastructure.
Globally, around $190 billion (€160.315 billion) is invested annually in climate adaptation to protect 1.2 billion people.
However, 4.1 billion people are currently exposed to climate risks, which would require an annual investment of $540 billion (around €456 billion).
Given the same scenario of 2°C warming by 2050, adaptation costs could reach $1.2 trillion per year, six times the current investment.
Founded in 1990, the McKinsey Global Institute produces independent research and analysis, i.e. it is not commissioned or funded by companies, governments or institutions.
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