A recent United Nations report has revealed a stark reality: the financial resources available for climate adaptation in developing countries are drastically insufficient, falling 12 to 14 times below what is actually needed. This significant shortfall jeopardizes the ability of vulnerable nations to protect their citizens, economies, and ecosystems from the escalating impacts of climate change.
The UN Environment Programme (UNEP)'s 2025 Adaptation Gap Report, titled "Running on Empty," highlights the widening disparity between the funds required for adaptation and the actual financial flows. The report, released ahead of the annual UN climate conference (COP30) in Belém, Brazil, estimates that developing countries will need between $310 billion and $365 billion annually by 2035 to implement adaptation measures. These measures are crucial for building resilience against climate-related disasters such as floods, heatwaves, storms, and rising sea levels. However, in 2023, international public adaptation finance flows to these countries amounted to only $26 billion, a decrease from $28 billion in 2022.
UN Secretary-General António Guterres emphasized the urgency of the situation, stating that "Climate impacts are accelerating. Yet adaptation finance is not keeping pace, leaving the world's most vulnerable exposed to rising seas, deadly storms, and searing heat". He stressed that adaptation is not merely a cost but a lifeline, and closing the adaptation gap is essential for climate justice and a sustainable future.
The report identifies several factors contributing to this critical funding gap, including geopolitical tensions and cuts to overseas development assistance. It also notes that the Glasgow Climate Pact's goal of doubling international public adaptation finance by 2025 from 2019 levels is unlikely to be met.
While a new collective goal set at COP29 in Baku aims to provide at least $300 billion per year for climate action in developing countries by 2035, the UNEP report suggests this amount is insufficient to bridge the adaptation finance gap. This is because the $300 billion target covers both mitigation and adaptation efforts, and it does not account for future inflation. Some developing countries, including India, had initially advocated for a much higher target of $1.3 trillion per year by 2035.
The UNEP report suggests that the private sector could play a more significant role in filling the adaptation finance gap, potentially contributing around $50 billion per year with targeted policy interventions and blended finance solutions. However, the report cautions that the overall contribution from the private sector is likely to be modest. UNEP Executive Director Inger Andersen called for a global push to increase adaptation finance from both public and private sources, without increasing the debt burden of vulnerable nations.
Despite the challenges, the report acknowledges progress in adaptation planning and implementation. Most countries have at least one national adaptation plan or strategy in place, and there is increasing integration of adaptation into national development planning. However, significant gaps remain in translating these plans into concrete action.
The upcoming COP30 in Belém is expected to be a crucial platform for addressing the adaptation finance gap. The Brazilian presidency of COP30 has called for a "mutirão global," a collective effort to achieve ambitious climate action. Recommendations include transitioning away from fossil fuels, engaging additional financial system stakeholders, and avoiding maladaptations such as seawalls that may be ineffective or harmful. The overarching message of the UN report is clear: increased and sustained investment in climate adaptation is essential to protect vulnerable populations and build a more resilient future.
