UNEP warns developing countries face widening climate adaptation funding crisis

NAIROBI, Kenya, Nov 4-Developing countries could meet less than a third of their climate adaptation financing needs even if wealthy nations deliver on a global commitment to triple funding by 2035, the United Nations Environment Programme (UNEP) has warned.

In its 2026 Adaptation Gap Report, titled Ready? Not, released Wednesday, UNEP said international public adaptation finance is growing too slowly to match the escalating costs of preparing vulnerable countries for climate change.

The report estimates that developing countries will require approximately US$305 billion annually by 2035 to adapt to worsening climate impacts, yet international public adaptation finance flows increased by only US$1 billion between 2023 and 2024.

Funding from developed to developing countries reached between US$28.2 billion and US$31.7 billion in 2024, leaving a substantial gap between available resources and the amount needed to strengthen climate resilience.

Even if countries fulfil the COP30 aspiration to triple international public adaptation finance by 2035, funding would reach only US$85 billion to US$120 billion annually, covering between 20 and 29 per cent of projected needs after accounting for inflation.

UNEP Executive Director Inger Andersen warned that the world was already struggling to prepare for existing climate conditions, even as global temperatures approach levels that could push warming beyond the 1.5°C threshold.

“The world is not ready to adapt to current climatic conditions, never mind what overshoot of 1.5°C will bring,” Andersen said.

She urged governments to intensify efforts to deliver on the COP30 Global Mutirão aspiration to triple adaptation finance, while recognising that substantially more resources would be required to protect lives, economies and livelihoods.

“At climate COP31 in Türkiye and beyond, nations must focus on intensifying efforts to achieve the COP30 Global Mutirão aspiration of tripling adaptation finance by 2035 – while understanding that they will need to go even higher to save lives, avoid losses and damages and protect economies,” she said.

The report identifies a growing mismatch between climate risks facing developing countries and the resources available to help them respond.

Least developed countries and small island developing states recorded increases in adaptation finance between 2019 and 2024, but funding has declined from its 2022 peak despite their heightened vulnerability to climate impacts.

UNEP also cautioned that the funding gap could be considerably larger when private-sector adaptation requirements are included, potentially almost doubling the estimated annual financing needs.

While private investment is increasing, the report estimates that it could reduce the funding gap for public-oriented adaptation measures by only 15 to 20 per cent, with much of the investment directed towards private-sector needs or ultimately financed by developing countries themselves.

Beyond the financing shortfall, UNEP identified institutional weaknesses as another major obstacle preventing countries from translating climate adaptation priorities into practical interventions.

The report noted that governments are making progress through climate change framework laws, improved coordination across government institutions, policy-learning platforms and dedicated mechanisms for mobilising and managing climate finance.

However, it stressed that stronger institutional arrangements are needed to ensure adaptation plans translate into implementation, particularly across sectors and different levels of government.

The report also raises concern over mounting climate-related losses and damages, warning that existing financing arrangements remain inadequate and difficult for affected countries to access.

The first funding round of the Fund for Responding to Loss and Damage attracted requests amounting to US$2.8 billion against an initial funding allocation of just US$342 million, highlighting the scale of unmet demand.

UNEP said affected countries continue to face complex application procedures and limited institutional capacity, restricting their ability to access available support.

It called for stronger assessment capacity, predictable financial and technical assistance, simplified access procedures, and greater involvement of affected communities in determining how responses to climate-related losses and damages are designed.

The findings come as countries prepare for the next round of international climate negotiations at COP31 in Türkiye, where adaptation finance and support for vulnerable nations are expected to remain central issues.

​Bruhan Makong is a Senior News Reporter for Capital FM in Nairobi, covering diplomacy, foreign policy, national security, climate, and human rights across East Africa and the wider region.