Section 3 (“Climate Change: The state of policy today”) describes how a prudent response to climate change involves a two-pronged approach: ambitious mitigation policies2 to reduce further climate change, as well as timely adaptation3 policies to limit damage by climate change impacts that are inevitable. Mitigation and adaptation policies are essential, and they are complementary. Most countries have begun to respond through actions at the international, national and local levels, drawing on a mix of policy instruments that include carbon pricing, other energy-efficiency policies, information-based approaches and innovation.