By Faridat Salifu
With just days to go before COP29 in Baku, Azerbaijan, the United Nations Environment Programme (UNEP) has issued a stark warning about a rapidly growing gap in global climate finance.
The agency’s latest report, Adaptation Gap Report 2024: Come Hell and High Water, projects that the global finance gap for climate adaptation could reach as high as $359 billion annually, a shortfall that could severely hamper efforts to help developing nations cope with escalating climate impacts.
The report emphasizes that, while adaptation funding has seen a modest rise, the current pace remains alarmingly insufficient given the surging costs driven by extreme weather events. UNEP Executive Director Inger Andersen underlined the pressing need for more substantial financial support, especially as the world’s most vulnerable communities bear the brunt of climate devastation.
“Raging storms are flattening homes, wildfires are wiping out forests, and land degradation is threatening livelihoods. People and nature are in immediate danger from climate change’s relentless impacts,” Andersen said.
International public adaptation finance to developing nations rose from $22 billion in 2021 to $28 billion in 2022, marking the largest increase since the Paris Agreement.
Yet, even if developed countries fulfill their Glasgow Climate Pact commitment to double adaptation funding by 2025, UNEP warns this would only close the gap by around five percent, leaving vulnerable nations far short of the funds they need to adapt effectively.
The report estimates that the annual adaptation finance gap could range from $187 billion to $359 billion. This shortfall poses severe risks for developing countries that are already struggling with increasing climate impacts and rising debt burdens.
UNEP’s call to action for COP29 is clear: the need for a “strong new collective quantified goal for climate finance” is urgent, alongside more robust adaptation strategies in countries’ nationally determined contributions (NDCs), which are due for submission by early 2025.
Beyond the financial gap, the report also highlights a troubling disparity in national preparedness.
While 171 countries have developed at least one National Adaptation Plan (NAP), 26 nations, many of them affected by conflict, still lack any such plans, leaving them highly vulnerable to climate risks.
UNEP notes that, even among countries with adaptation plans, implementation is often hindered by inadequate resources and infrastructure, slowing their response to mounting climate threats.
“The potential effectiveness of national adaptation plans from developing countries is mixed,” the report states, stressing that, despite progress, the scale and speed of adaptation fall short in light of growing risks. UNEP suggests that bridging this gap will require more than incremental increases in funding.
The report advocates for a shift from short-term, project-based solutions to more strategic, long-term planning that prioritizes resilience and sustainability.
UNEP’s report also emphasizes the role of innovation and collaboration in closing the adaptation finance gap, urging countries to foster partnerships between the public and private sectors.
Experts argue that without a significant increase in both funding and international cooperation, vulnerable nations will continue to face immense challenges in adapting to climate change, with severe consequences for global stability and security.
As COP29 opens, world leaders and climate negotiators will be under pressure to deliver actionable commitments that address both the urgency of climate adaptation and the need for a fair and equitable financial framework.
The stakes have never been higher, and UNEP’s call for an ambitious climate finance target reflects the critical crossroads the world now faces in its fight against climate change.