UNEP Warns: Developing Countries Require $310 Billion Annually for Climate Adaptation as Financial Gap Grows

A recent United Nations report highlights a troubling shortage of funds to help developing countries cope with the growing effects of climate change. The UN Environment Programme (UNEP) warns that current financial support is drastically inadequate. By 2035, developing nations will need over $310 billion each year to adapt, which is 12 times more than what is currently available.

The 2025 Adaptation Gap Report, titled “Running on Empty,” reveals slow progress amid rising risks. It stresses that urgent action is essential to meet the Glasgow Climate Pact’s goal of doubling adaptation financing to about $40 billion by 2025. As UN Secretary-General António Guterres puts it, “Adaptation is not a cost – it is a lifeline.” Without proper funding, vulnerable populations face increased threats from rising seas, severe storms, and extreme heat.

The report estimates that funding needs could soar to $365 billion annually when considering national policies and climate pledges, while international financial support for adaptation fell from $28 billion in 2022 to $26 billion in 2023, revealing a staggering gap of $284 to $339 billion. Previous projections indicated a $194–366 billion gap by 2030, but that number is now even more concerning due to escalating temperatures and climate disasters.

At present, 172 countries have established at least one national adaptation strategy, but many are outdated. Roughly 36 plans haven’t been revised in over ten years, which heightens the risk of maladaptation. Floods, droughts, and changing weather patterns continue to pose significant threats, yet few countries accurately track the effectiveness of their adaptation actions.

Although support for initiatives from funds like the Adaptation Fund and Green Climate Fund increased to nearly $920 million in 2024, experts warn this may be short-lived. Emerging financial constraints cast doubt on future support. The New Collective Quantified Goal (NCQG), set at COP29, aims for developed nations to provide at least $300 billion annually for climate-related efforts. However, UNEP argues this figure falls short of what’s needed to bridge the gap.

Two main factors contribute to the funding gap. If inflation continues at its current rate, adaptation needs could rise to between $440 to $520 billion by 2035. Furthermore, the $300 billion target includes both mitigation and adaptation, which means adaptation would only receive a smaller share.

The Baku to Belém Roadmap aims to gather $1.3 trillion by 2035 to help close this financing gap, but UNEP emphasizes this must be in the form of grants and non-debt tools to avoid compounding existing financial burdens on developing nations.

UNEP Executive Director Inger Andersen notes that everyone is feeling climate change’s effects, from wildfires to rising costs. As the push to cut emissions falls short, these impacts will grow, leading to more economic turmoil. She stresses the urgent need for a global commitment to boost adaptation finances from all sources, without adding to the debt for vulnerable countries.

The private sector holds untapped potential, currently investing only about $5 billion annually in adaptation. However, with the right incentives, this could rise to $50 billion. Targeted policies and blended finance solutions could help achieve this increase.

As we approach COP30 in Belém, Brazil, the “Running on Empty” report serves as a stark reminder: progress is being made, but not quickly enough. Without immediate action, developing countries, which already face severe climate impacts, will continue to bear the brunt of these challenges.

As António Guterres starkly emphasizes, “Adaptation is not a cost – it is a lifeline.”

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