Financial support to help developing countries prepare for climate impacts has stalled since 2022, even as extreme weather risks grow, according to a new report from the UN Environment Programme (UNEP). Funding for adaptation remains far below the amounts countries need and the targets wealthy nations previously pledged to meet.
The report estimates that 155 developing countries will require $305 billion a year by 2035 to adapt to heatwaves, fires, floods, storms, droughts and rising sea levels. Adaptation measures include stronger infrastructure, early warning systems, flood protection and irrigation designed to withstand drought.
The latest available figures show that transfers from wealthy to poorer countries reached no more than $32 billion in 2024. That was about $1 billion more than in 2023, but below the 2022 peak. The report says the amount is also short of the target of $40 billion by 2025, although some of the gap may have been covered by multilateral development banks last year.
At the COP30 climate talks in Belém, Brazil, wealthy nations agreed to triple adaptation finance for developing countries by 2035. That would raise annual support to between $85 billion and $120 billion, but still cover only 20% to 29% of estimated needs, UNEP said.
The shortfall is especially acute for the least developed countries and small island states, which face high climate risks and have fewer resources to strengthen infrastructure. They need an estimated $40 billion to $50 billion annually for adaptation, equivalent to around 3% to 4% of their gross domestic product. Yet their adaptation funding in 2024 was 16% lower than in 2022.
A separate loss and damage fund is also under pressure. In its first round, 119 developing countries requested a combined $2.8 billion, compared with initial funding of $342 million. The report also notes that borrowing costs can more than double adaptation project budgets, strengthening calls for grants or concessional loans rather than high-interest financing.
UNEP Executive Director Inger Andersen said rising climate impacts made it urgent to deliver on funding commitments, describing adaptation finance as an investment in resilience, food security and the protection of communities facing the greatest risks.
Sources: The Guardian Business.