Climate Adaptation Finance Gap Widens, Leaving Developing Countries at Risk

The United Nations Environment Programme (UNEP) has released a report warning that developing countries will need at least $310-365 billion per year by 2035 to take adaptation measures to protect lives, livelihoods, and economies from the impact of climate change. However, the current financing lags far behind at around $26 billion, which is 12-14 times less than what is actually needed. The report, released ahead of the annual UN climate conference (COP30), also highlights that the Glasgow Climate Pact goal of doubling international public adaptation finance to $40 billion by 2025 will not be achieved, leaving millions at greater risk from floods, heatwaves, and storms.

Key Takeaways:

• Developing countries need at least $310-365 billion per year by 2035 for adaptation measures, but the current financing is around $26 billion.
• The Glasgow Climate Pact goal of doubling international public adaptation finance to $40 billion by 2025 will not be achieved.
• The adaptation finance gap is due to a decrease in international public adaptation finance flows to developing countries, from $28 billion in 2022 to $26 billion in 2023.
• The report notes that adaptation financing is insufficient to close the finance gap, with the new goal for climate finance calling for developed nations to provide at least $300 billion for climate action in developing countries per year by 2035 being considered insufficient by developing countries.
• The report highlights that grants, concessional, and non-debt-creating instruments are essential to avoid increasing indebtedness, which would make it harder for vulnerable countries to invest in adaptation.
• The UNEP's "Adaptation Gap Report 2025" notes the progress in meeting climate pledges, with countries reporting on over 1,600 implemented adaptation actions, mostly on biodiversity, agriculture, water, and infrastructure.
• However, few countries are reporting on actual outcomes and impacts, which are needed to assess their effectiveness and adequacy.

Statistics:

• $310-365 billion per year: the estimated adaptation finance needed by developing countries by 2035 in 2023 prices.
• $26 billion: the current adaptation finance, which is 12-14 times less than what is actually needed.
• $28 billion (2022): the international public adaptation finance flows to developing countries in 2022.
• $40 billion (2025): the Glasgow Climate Pact goal of doubling international public adaptation finance, which will not be achieved.
• $300 billion per year: the new goal for climate finance calling for developed nations to provide at least $300 billion for climate action in developing countries per year by 2035.
• 1,600: the number of implemented adaptation actions reported by countries in their Biennial Transparency Reports submitted under the Paris Agreement.
• 172: the number of countries that have adaptation plans.

Sources:

• UN Environment Programme (UNEP), "Adaptation Gap Report 2025"
• UN secretary-general António Guterres
• Inger Andersen, executive director, UNEP
• Harjeet Singh, climate activist and founding director of the Satat Sampada Climate Foundation