Adaptation Finance Shortfall: Bridging the Climate Gap
A UN report highlights a significant gap in climate adaptation finance for developing countries. Despite increasing needs, finance flows from wealthy nations have declined, jeopardizing efforts to protect vulnerable communities from worsening climate impacts. Urgent action is required to meet adaptation goals and avoid deepening inequalities.
- Country:
- India
Developing countries face a significant shortfall in climate adaptation funding, requiring up to USD 365 billion annually by 2035, as reported by a recent UN Environment Programme (UNEP) study. While climate impacts intensify, finance from affluent nations has dwindled, with only USD 26 billion provided in 2023, compared to USD 28 billion in the previous year.
Despite 172 countries establishing adaptation plans, the adaptation finance gap has reached alarming levels, about 12 to 14 times the current funding. Climate activist Harjeet Singh emphasized that this financial gap directly results in lost lives and damaged livelihoods. Without a sharp increase in public and private funding, doubling adaptation finance by 2025 seems unattainable, casting doubt on the goals set in the Glasgow Climate Pact.
The UNEP report advises that both public and private sectors must boost contributions, with the private sector potentially adding USD 50 billion annually by 2035. It cautions against over-reliance on loans, as they may exacerbate inequalities and financial burdens on developing nations. Increasing global adaptation finance is essential to mitigate impacts on vulnerable communities that contribute the least to global emissions.
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