Climate Adaptation Finance Gap Stretches – UNEP

Forecast climate adaptation finance needs for developing countries are now ten to 18 times larger than existing international public flows – over 50% higher than previous estimates. The UN Environment Programme’s (UNEP) 2023 ‘Adaptation Gap Reportwarned that the modelled costs of adaptation in developing countries are estimated at US$215 billion per year this decade, with an additional US$387 billion a year needed to implement domestic adaptation priorities. Despite these needs, public multilateral and bilateral adaptation finance flows to developing countries declined by 15% to US$21 billion in 2021, the report said, noting that the finance gap stands at between US$194-US$366 billion a year. The report has outlined seven ways to increase financing, including increasing and tailoring finance to SMEs, ensuring the Loss and Damage fund moves towards more innovative financing mechanisms, and reforming global financial architecture as proposed by the Bridgetown Initiative. In the foreword of the report, Inger Andersen, UNEP’s Executive Director, wrote: “Even if the international community were to stop emitting all greenhouse gases today, it would take decades for the climate to stabilise. Climate disruption is here to stay for the long haul. I urge policymakers to take heed of this report and make COP28 the moment that the world is committed fully to insulating low-income countries and disadvantaged groups from damaging climate impacts.” 

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