The study is focused on assessing the fiscal implications of climate change adaptation within the EU. In the first step of the project, the theoretical framework for analysing adaptation will be developed. In the second step, the targets-instruments nexus in socio-economic policy-making is considered, in particular, the trade-off between regulation and economic incentives. In that context, an in-depth assessment of adaptation strategies already implemented or planned in selected EU countries will be made. The principal output of the study will then be assessments of fiscal sustainability issues (fiscal gap) implied in different scenarios and of policy issues with respect to the public finance dimension of adaptation options.