Abstract
Climate change is advancing, sea levels are rising, and peak river discharges are increasing. Accelerated sea level rise (SLR) may pose a significant threat to the long-term habitability of the Netherlands. In the short term, further reinforcement of flood defenses is required. However, the key long-term question is which adaptation strategy will most effectively manage flood risk in the Netherlands. As part of the SLR Knowledge Programme, research was conducted on various long-term strategies, focusing on the feasibility of three approaches: Protect, Advance, and Accommodate. The Protect and Advance strategies aim to reduce flood risk primarily through the prevention of flooding. The Accommodate strategy, particularly in its more extreme form, emphasizes Managed Retreat, following the precautionary principle, or seeks to mitigate flood consequences rather than invest in Prevention. This study examined the economic implications of two opposing cornerstone strategies, Protect and Managed Retreat, as well as hybrid strategies that integrate elements of both, across different sea level rise scenarios. Additionally, the study includes a forward-looking assessment of the potential impacts on the financial sector, with particular attention to catastrophe insurance and capital requirements aimed at mitigating default risk. The findings indicate that a Managed Retreat strategy represents a last-resort option and cannot be implemented effectively without concurrent protective measures. Furthermore, the annual flood risk is only marginally reduced under the Accommodate strategy, even when combined with protective interventions, while its associated costs significantly exceed those of the Protect strategy. A combined approach integrating protection with localized Accommodate measures that support multi-functional land use, such as nature-based solutions and water storage, appears to offer a more promising strategy, if these values cover the costs. The results can be used to evaluate the effectiveness of possible adaptation strategies to sea level rise.