New Delhi, Nov. 3 -- According to a McKinsey Global Institute report, more than half of the climate adaptation projects that are difficult to implement by 2050 will need technological and financial innovation to lower costs. Such innovation could make measures worth USD 440 billion annually commercially viable.

McKinsey estimates that global annual spending on climate adaptation could reach USD 1.2 trillion by 2050 under a scenario of 2 degrees Celsius warming. However, measures worth USD 690 billion, or 60 per cent of the total, are currently not deployment-ready because of demand and financing barriers.

"Innovating to reduce costs could address by far the largest challenge," the report said, adding that innovation could make USD 440 b...