The United Nations Environment Programme (UNEP) has warned that the widening gap in climate adaptation finance for developing countries poses serious risks to lives, livelihoods, and economies worldwide.
The warning is contained in the Adaptation Gap Report 2025, titled “Running on Empty,” released Wednesday ahead of the COP30 climate summit in Belém, Brazil.
The report states that while adaptation planning and implementation are improving, developing countries will require over $310 billion annually by 2035 to cope with worsening climate impacts—more than 12 times current international public adaptation finance flows.
UN Secretary-General António Guterres described adaptation as “a lifeline” for vulnerable nations, emphasizing that climate impacts are accelerating while finance is lagging.
“Adaptation is not a cost; it is a lifeline. Closing the adaptation gap is how we protect lives, deliver climate justice, and build a safer, more sustainable world,” Guterres said.
UNEP Executive Director Inger Andersen warned that inadequate adaptation finance is compounding global risks as temperatures rise and extreme weather worsens.
“Every person on this planet is living with the impacts of climate change: wildfires, heatwaves, desertification, floods, rising costs, and more. If we do not invest in adaptation now, we will face escalating costs every year,” Andersen said.
The report shows that international public adaptation finance to developing countries fell to $26 billion in 2023, down from $28 billion the previous year, leaving an annual funding gap of $284–339 billion. Current trends suggest the Glasgow Climate Pact goal of doubling international adaptation finance to $40 billion by 2025 will not be met.
Despite funding challenges, 172 countries now have at least one national adaptation plan or policy in place, though many require urgent updates to prevent maladaptation. Countries reported over 1,600 adaptation actions under the Paris Agreement, mostly in biodiversity, agriculture, water, and infrastructure, but few measured the actual outcomes of these initiatives.
Support for new projects through major climate funds—including the Adaptation Fund, Global Environment Facility (GEF), and Green Climate Fund (GCF)—rose to nearly $920 million in 2024, an 86% increase compared with the five-year average from 2019 to 2023. UNEP cautioned that this increase could be temporary due to emerging financial constraints.
The report noted that the New Collective Quantified Goal for climate finance, set at $300 billion per year by 2035, remains insufficient to close the adaptation finance gap, as it covers both mitigation and adaptation. Rising inflation and debt could further reduce the capacity of developing nations to invest in adaptation unless new, concessional, and non-debt-creating financing mechanisms are introduced.
The report also highlighted the need for greater private sector involvement, noting that current private flows for adaptation are about $5 billion per year, while potential annual flows could reach $50 billion with targeted policies and blended finance strategies.
UNEP called for urgent collective action to mobilize resources, prevent maladaptation, and integrate climate resilience into financial systems globally.
