UN: Developing nations face $284 billion climate funding gap

UN: Developing nations face 4 billion climate funding gap

New Delhi: As Hurricane Melissa hits Jamaica and Cuba, before moving on to the Bahamas and Bermuda, a new UN report has confirmed that there is a funding gap of at least $284 billion a year to help developing countries adapt to such devastating effects of climate change.

Actual financial flows to developing countries to assist with their adaptation needs in 2023 were only $26 billion. According to the Running on Empty report, developing countries will need $310 to $365 billion annually by 2035 to adapt to climate impacts. This is 12 times the current international public adaptation financing flow.

“As actions to reduce greenhouse gas emissions continue to be delayed, these impacts will worsen, harming more people and causing significant economic damage,” said UNEP Executive Director Inger Andersen.
UN Environment Program experts explain that the $310 billion annual figure is based on modeled costs.

Estimates based on estimated needs that countries include in their Nationally Determined Contributions and National Adaptation Plans suggest a higher requirement of $365 billion.

The report makes clear that the $300 billion climate finance target agreed in Baku is not enough. This $300 billion sum is used for all climate actions, namely mitigation and adaptation. On the other hand, countries’ adaptation planning and practices are improving. Approximately 172 countries have at least one national adaptation policy, strategy or plan in place; Only four countries have not begun to develop a plan.

The Biennial Transparency Reports submitted by countries under the Paris Agreement to summarize progress in meeting climate commitments include more than 1,600 implemented adaptation actions, mostly on biodiversity, agriculture, water and infrastructure.

The report finds that only a few countries report on actual outcomes and impacts, which is necessary to assess effectiveness and adequacy.

Adaptation financing, consisting primarily of public funds and grants, will be a key issue at COP30 in Brazil.