Developing countries need far more funding to prepare for the effects of climate change, according to the UN Environment Programme’s latest Adaptation Gap Report. The report estimates that adaptation will require $305 billion annually by 2035, while current financial support from industrialized countries remains well below that level.
Even if today’s funding were tripled by 2035, it would meet only 20% to 29% of the estimated need, the report says. Financial assistance is included in the Paris Agreement, reflecting the responsibility of industrialized nations for much of the climate crisis and the greater exposure of poorer countries to its impacts.
In 2024, funding from industrialized countries to developing nations totaled between $28.2 billion and $31.7 billion, an increase of $1 billion from the previous year. The report also notes that climate-related damage and losses continue to rise.
UNEP Executive Director Inger Andersen said the world is not prepared to adapt to current climate conditions, let alone the consequences of exceeding the 1.5-degree threshold. The report points to this summer’s heatwave in Western Europe and flooding in Nepal as examples of severe impacts. It also warns that the coming months could bring the largest El Niño event on record.
UN Secretary-General António Guterres said the funding gap is measured not only in money but also in lives and lost opportunities. He called for vulnerable people to receive support quickly and without unnecessary barriers, and urged governments to strengthen their political commitment to adaptation.
Andersen called for further funding pledges at this year’s UN climate conference, COP31, in Turkey. She said countries must step up efforts to meet the COP30 goal of tripling adaptation finance by 2035, while recognizing that even greater sums will be needed to save lives, limit losses and protect economies.
The report also highlights growth in financial cooperation among developing countries. Funding through multilateral development banks and direct South-South cooperation reached $9.6 billion in 2024, up from $3.8 billion in 2019. Private financial flows also increased, it says.
Sources: Handelsblatt.