Even under the most ambitious scenarios for reducing greenhouse gas emissions, climate change will affect human well-being for generations, with the severity of impacts varying across mitigation pathways.[3] Adaptation to climate change is therefore a necessary complement to mitigation.[3] Individuals, businesses and communities benefit directly from their adaptation decisions, so their motivation to adapt is stronger than the motivation to reduce emissions.[3] However, evidence to date shows that communities are not systematically adapting to recent climate changes.[3] Policymakers can support adaptation by designing and regulating markets, which in many cases motivate the economy to effectively adapt to complex and large-scale impacts.[3] The article builds on the growing economic research on climate adaptation and identifies when and how markets can serve as a tool for effective and efficient adaptation.[3]