Adaptive capacity relates to the capacity of systems, institutions, humans and other organisms to adjust to potential damage, to take advantage of opportunities, or to respond to consequences. In the context of ecosystems, adaptive capacity is determined by genetic diversity of species, biodiversity of particular ecosystems, heterogeneous ecosystem mosaics as applied to specific landscapes or biome regions. In the context of coupled socio-ecological social systems, adaptive capacity is commonly associated with following characteristics the ability of institutions and networks to learn, and store knowledge and experience; creative flexibility in decision making, transitioning and problem solving; and the existence of power structures that are responsive and consider the needs of all stakeholders. In the context of climate change adaptation, adaptive capacity depends on the inter-relationship of social, political, economic, technological and institutional factors operating at a variety of scales. Some of these are generic, and others are exposure-specific. Benefits Adaptive capacity confers resilience to perturbation, giving ecological and human social systems the ability to reconfigure themselves with minimum loss of function. In ecological systems, this resilience shows as net primary productivity and maintenance of biomass and biodiversity, and the stability of hydrological cycles. In human social systems it is demonstrated by the stability of social relations, the maintenance of social capital and economic prosperity. Building adaptive capacity is particular important in the context of climate change, where it refers to a latent capacity - in terms of resources and assets - from which adaptations can be made as required depending on future circumstances. Since future climate is likely to be different from the present climate, developing adaptive capacity is a prerequisite for the adaptation that can reduce the potential negative effects of exposure to climate change. In climate change, adaptive capacity, along with hazard, exposure and vulnerability, is a key component that contributes to risk, or the potential for harm or impact. Characteristics Adaptive capacity can be enhanced in a number of different ways. A report by the Overseas Development Institute introduces the local adaptive capacity framework (LAC), featuring five core characteristics of adaptive capacity. These include: Asset base: the availability of a diverse range of key livelihood assets that allow households or communities to respond to evolving circumstances Institutions and entitlements: the existence of an appropriate and evolving institutional environment that allows for access and entitlement to key assets and capitals Knowledge and information: the ability households and communities have