• Adaptation finance needs of developing countries projected to exceed US$310 billion annually by 2035
• Global goal to double adaptation funding by 2025 unlikely to be met
• Report urges urgent action as climate impacts intensify
The United Nations Environment Programme (UNEP) has warned that slow progress in climate adaptation is putting millions of lives, livelihoods, and entire economies at risk, particularly in developing countries.
According to the Adaptation Gap Report 2025: Running on Empty, released ahead of COP30 in Belém, Brazil, developing countries will require over US$310 billion annually by 2035 to meet adaptation needs — more than 12 times current international public finance levels.
UN Secretary-General António Guterres described the situation as a “lifeline issue,” stressing that adaptation is essential to protect vulnerable populations.
“Climate impacts are accelerating, yet adaptation finance is not keeping pace,” Guterres said. “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.”
UNEP Executive Director Inger Andersen echoed this urgency, noting that every region is already facing the devastating effects of climate change — from wildfires and floods to rising living costs.
“We need a global push to increase adaptation finance from both public and private sources,” Andersen said. “If we do not invest in adaptation now, we will face escalating costs every year.”
A widening finance gap
The report estimates that developing countries’ adaptation needs could reach US$365 billion annually when based on national plans and climate pledges. However, in 2023, only US$26 billion flowed from international public adaptation finance — down from US$28 billion in 2022.
This leaves an annual funding gap of US$284–339 billion, making it increasingly unlikely that the Glasgow Climate Pact’s goal of doubling adaptation finance to about US$40 billion by 2025 will be met.
Progress and Persistent Challenges
UNEP notes that 172 countries now have national adaptation policies or plans, though many are outdated. While over 1,600 adaptation projects have been reported globally — focusing on agriculture, water, biodiversity, and infrastructure — few countries are assessing the real-world outcomes and impacts of these measures.
Despite some positive signs, including an 86% rise in support from major climate funds to US$920 million in 2024, UNEP warns that financial constraints could stall progress in the coming years.
Public and Private Finance Must Scale Up
Under the New Collective Quantified Goal for climate finance agreed at COP29, developed nations are expected to provide at least US$300 billion per year by 2035 for climate action in developing countries. However, this figure covers both mitigation and adaptation, leaving adaptation efforts underfunded.
The report projects that with inflation, adaptation costs could climb to US$440–520 billion per year by 2035.
UNEP emphasizes that the Baku to Belém Roadmap, which seeks to raise US$1.3 trillion by 2035, could help close the funding gap — but only if new investments avoid deepening debt burdens for vulnerable nations.
It calls for more grants, concessional loans, and non-debt instruments, along with policies that encourage private sector participation. Private investment in national adaptation priorities could reach US$50 billion annually — up from the current US$5 billion — if supported by targeted policy reforms and blended finance solutions.
