Abstract This article assesses the potential of cash transfer programmes to contribute to adaptation goals in developing countries. It argues that cash transfers are likely to contribute to adaptive capacity by (1) meeting basic needs; (2) helping the poor respond to climate-related shocks; (3) helping vulnerable households to manage risk and consider investment innovations that increase their adaptive capacity; (4) transferring money for investment in long-term adaptive capacity development; and (5) facilitating mobility and livelihood transitions. While the article acknowledges that cash transfers cannot address all areas of adaptation, these transfers may be a prerequisite for further adaptation to be equitable and effective. When compared with other adaptation options, cash transfers fare well as they are supported by a substantial evidence base, do not require much climate-related information, have a demonstrated potential for scaling up and are likely to gain local acceptance.