By Abbas Nazil & Abdullahi Lukman
The United Nations Environment Programme (UNEP) has warned that the global failure to adequately finance climate adaptation is putting millions of lives and entire economies at risk, especially in developing countries.
According to the Adaptation Gap Report 2025: Running on Empty, released ahead of COP30 in Belém, Brazil, developing countries will require more than $310 billion annually by 2035 to effectively adapt to worsening climate impacts—12 times higher than current international public adaptation finance flows.
UN Secretary-General António Guterres described adaptation as a “lifeline” rather than a cost, urging world leaders to close the financing gap immediately to save vulnerable populations from rising seas, deadly storms, and extreme heat.
UNEP Executive Director Inger Andersen emphasized that every person on Earth is already experiencing climate impacts, from floods and heatwaves to desertification and rising living costs.
She stressed the urgent need to boost adaptation finance without increasing the debt burden of developing nations.
The report revealed that adaptation finance to developing countries declined to $26 billion in 2023 from $28 billion the previous year, leaving an annual shortfall of $284–339 billion.
Without urgent action, the Glasgow Climate Pact goal of doubling adaptation finance by 2025 will not be achieved.
Despite financial challenges, progress in adaptation planning is notable.
Around 172 countries now have at least one national adaptation policy or plan, though 36 of these are outdated and require revision to prevent maladaptation.
Support from global climate funds, including the Adaptation Fund and the Green Climate Fund, rose to $920 million in 2024—an 86 percent increase compared to the previous five-year average.
However, experts fear this growth may not be sustained amid tightening fiscal conditions.
The report also noted that the new global finance target of $300 billion per year by 2035 remains insufficient, as it covers both mitigation and adaptation.
With inflation-adjusted costs projected between $440 billion and $520 billion, UNEP urged developed countries and private investors to contribute more.
Private sector participation, currently estimated at $5 billion annually, could potentially reach $50 billion with supportive policies and blended finance mechanisms.
UNEP concluded that without a major increase in adaptation funding, the world will face escalating human and economic losses each year, threatening global stability and reversing development progress in the world’s most vulnerable regions.
