NEW DELHI: Developing countries need substantial adaptation funds, amounting to over US$310 billion per year by 2035, according to a report from the United Nations Environment Programme (UNEP).
In the lead-up to COP30, UNEP urged nations to increase adaptation funding from the current US$26 billion to US$310 billion annually by 2035. This funding is crucial for developing countries to mitigate the impacts of climate change and implement essential adaptation actions, primarily focusing on biodiversity, agriculture, water, and infrastructure.
The Adaptation Gap Report 2025: Running on Empty highlights that the financial needs for adaptation in developing countries are twelve times greater than current international public adaptation finance flows. The report indicates that by 2035, the estimated financial requirement for adaptation could rise to US$365 billion if based on extrapolated needs outlined in Nationally Determined Contributions and National Adaptation Plans. These estimates reflect 2023 values and do not account for inflation.
In 2023, international public adaptation finance allocated to developing countries was US$26 billion, a decrease from US$28 billion the previous year. This signifies an adaptation finance gap of between US$284 billion and US$339 billion annually—12 to 14 times the current funding levels. A previous estimate for adaptation finance needs in 2030 was between US$194 billion and US$366 billion.
The report warns that if financing trends do not improve swiftly, the goal outlined in the Glasgow Climate Pact to double international public adaptation finance from 2019 levels - approximately US$40 billion by 2025- will remain unattainable.
The report also analysed national adaptation policies and plans, revealing that the majority of countries have established at least one national adaptation policy.
Specifically, 172 countries have implemented a national adaptation policy, strategy, or plan, while only four countries have not begun developing one. However, 36 of these 172 countries have instruments that are outdated or have not been updated in over a decade, which poses a risk of maladaptation.
Moreover, the Biennial Transparency Reports submitted under the Paris Agreement indicate that countries have reported on more than 1,600 implemented adaptation actions, mainly concerning biodiversity, agriculture, water, and infrastructure. However, few nations provide information on actual outcomes and impacts, which are essential for assessing the effectiveness and adequacy of these actions.
UN Secretary-General António Guterres has underscored the importance of adaptation funding, urging nations to close the existing gap. He stated, “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. Let us not waste another moment.”
