Climate Change Adaptation Funding Gap Exceeds $284 Billion Annually

A new UN report, Running on Empty, has revealed a significant funding gap in climate change adaptation for developing countries. The report estimates that these nations will require between $310 and $365 billion annually by 2035 to adapt to climate-related impacts. This is 12 times the current international public adaptation finance flows, which stood at $26 billion in 2023. The report emphasizes that the gap will widen if greenhouse gas emissions continue to be cut at a slower pace.

Key Takeaways:

• The estimated annual adaptation funding gap for developing countries is between $310 and $365 billion by 2035, based on modelled costs and extrapolated needs.
• The current international public adaptation finance flows are only $26 billion, which is a significant underfunding of adaptation needs.
• Around 172 countries have at least one national adaptation policy, strategy, or plan in place, indicating improving adaptation planning and implementation.
• Only four countries have not started developing a plan, and over 1,600 implemented adaptation actions are reported, primarily in biodiversity, agriculture, water, and infrastructure.
• The report highlights the need for more transparency in adaptation efforts, with only a few countries reporting on actual outcomes and impacts.

Statistics:

• $284 billion: The annual funding gap in adaptation for developing countries, as estimated by the UN report.
• $310 billion: The estimated annual adaptation funding need by 2035, based on modelled costs.
• $365 billion: The estimated annual adaptation funding need by 2035, based on extrapolated needs.
• $26 billion: The actual international public adaptation finance flows in 2023.
• 172 countries: The number of countries with at least one national adaptation policy, strategy, or plan in place.
• 4 countries: The number of countries that have not started developing a plan.
• $300 billion: The agreed climate finance target, intended for all climate action, including mitigation and adaptation.

Sources:

• UN Environment Programme's report, Running on Empty.