Electric vehicles (EVs) now account for more than one-in-four car sales around the world, but the next phase is likely to depend on government action – not just technological change.
That is the conclusion of a new report from the Centre for Net Zero, the Rocky Mountain Institute and the University of Oxford’s Environmental Change Institute.
Our report shows that falling battery costs, expanding supply chains and targeted policy will continue to play important roles in shifting EVs into the mass market.
However, these are incremental changes and EV adoption could stall without efforts to ensure they are affordable to buy, to boost charging infrastructure and to integrate them into power grids.
Moreover, emerging tax and regulatory changes could actively discourage the shift to EVs, despite their benefits for carbon dioxide (CO2) emissions, air quality and running costs.
This article sets out the key findings of the new report, including a proposed policy framework that could keep the EV transition on track.
A global tipping point
Technology transformations are rarely linear, as small changes in cost, infrastructure or policy can lead to outsized progress – or equally large reversals.
The adoption of new technologies tends to follow a similar pathway, often described by an “S-curve”. This is divided into distinct phases, from early uptake, with rapid growth from very low levels, through to mass adoption and, ultimately, market saturation.
However, technologies that depend on infrastructure display powerful “path-dependency”, meaning decisions and processes made early within the rollout can lock in rapid growth, but equally, stagnation can also become entrenched, too.
EVs are now moving beyond the early-adopter phase and beginning to enter mass diffusion. There are nearly 60m on the road today, according to the International Energy Agency, up from just 1.2m a decade ago.
Technological shifts of this scale can unfold faster than expected. Early in the last century in the US, for example, millions of horses and mules virtually disappeared from roads in under three decades, as shown in the chart below left.
Yet the pace of these shifts is not fixed and depends on the underlying technology, economics, societal norms and the extent of government support for change. Faster or slower pathways for EV adoption are illustrated in the chart below right.

Internal combustion engine (ICE) vehicles did not prevail in becoming the dominant mode of transport through technical superiority alone. They were backed by massive public investment in roads, city planning, zoning and highway expansion funded by fuel taxes.
Meanwhile, they faced few penalties for pollution and externalities, benefitting from implicit subsidies over cleaner alternatives. Standardisation, industrial policy and wartime procurement further entrenched the ICE.
EVs are well-positioned to follow a faster trajectory, as they directly substitute ICE vehicles while being cleaner, cheaper and quieter to run.
Past transitions show that like-for-like replacements – such as black-and-white to colour TVs – tend to diffuse faster than entirely novel products.
Late adopters also benefit from cost reductions and established norms. For example, car ownership took 60 years to diffuse across the US, but just 20 years in parts of Latin America and Japan.
In today’s globalised economy, knowledge, capital and supply chains travel faster still. Our research suggests that the global EV shift could be achieved within decades, not half a century.
Yet without decisive policy, investment and coordination, feedback loops could slow, locking in fossil-fuel dependence.
Our research suggests that further supporting the widespread deployment of EVs hangs on three interlinked actions: supporting adoption; integrating with clean electricity systems; and ensuring sustainability across supply chains and new mobility systems.
Closing the cost gap
EVs have long offered lower running costs than ICE vehicles, but upfront costs – while now cost-competitive in China, parts of Europe and in growing second-hand markets – remain a major barrier to adoption in most regions.
While battery costs have fallen sharply – lithium-ion battery packs fell by 20% in 2024 alone – this has not fully translated into lower retail vehicle prices for consumers.
In China, a 30% fall in battery prices in 2024 translated into a 10% decline in electric SUV prices. However, in Germany, EV retail prices rose slightly in 2024 despite a 20% drop in battery costs.
These discrepancies reflect market structures rather than cost fundamentals. Our report suggests that a competitive EV market, supported by transparent pricing and a strong second-hand sector, can help unlock cost parity in more markets.
Beyond the sale of EVs, government policy around running costs, such as fuel duty, has the potential to disincentivse EV adoption.
For example, New Zealand’s introduction of road-pricing for EVs contributed to a collapse in registrations from nearly 19% of sales in December 2023 to around 4% in January 2024.
EV-specific fees have also been introduced in a number of US states. Last month, the UK also announced a per-mile charge for EVs – but not ICEs – from 2028.
Addressing the loss of fuel-duty revenue as EVs replace ICE vehicles is a headache for any government seeking to electrify mobility.
However, to avoid slowing diffusion, new revenues could be used to build out new charging infrastructure, just as road-building was funded as the ICE vehicle was scaling up.
While subsidies to support upfront costs can help enable EV adoption, the best approach to encouraging uptake is likely to shift once the sector moves into a phase of mass diffusion.
Targeted support, alongside innovative financing models to broaden access, from blended finance to pay-as-you-drive schemes, could play a greater role in ensuring lower-income drivers and second-hand buyers are not left behind.
Mandates as engines of scale
Zero-emission vehicle (ZEV) mandates and ICE phase-out deadlines can reduce costs more effectively than alternatives by guaranteeing market scale, our research finds, reducing uncertainty for automakers and pushing learning rates forward through faster production.
California’s ZEV mandate was one of the first in the 1990s, a policy that has since been adopted by ten other US states and the UK.
China’s NEV quota system has produced the world’s fastest-growing EV market, while, in Norway, clear targets and consistent incentives mean EVs now account for nearly all of new car sales. These “technology-forcing” policies have proved highly effective.
Analyses consistently show that the long-run societal benefits of sales mandates for EVs far outweigh their compliance costs.
For example, the UK’s ZEV mandate has an estimated social net present value of £39bn, according to the government, driven largely by emissions reductions and lower running costs for consumers.
Benefits can also extend beyond national borders. For example, California’s “advanced clean cars II” regulations – adopted by a number of US states and an influence on other countries – have been instrumental in compelling US automakers to develop and commercialise EVs, which can, in turn, trigger innovation and scale to reduce costs worldwide.
Research suggests that, where possible, combining mandates and incentives creates further synergies: mandates alleviate supply-side constraints, making subsidies more effective on the demand side.
Public charging: a critical bottleneck
Public charging is one of the most significant impediments to EV adoption today.
Whereas EVs charged at home are substantially cheaper to run than ICE vehicles, higher public charging costs can erase this benefit – in the UK, this can be up to times the home equivalent.
While most homes in the UK, for example, do have access to off-street parking, there are large swathes of low-income and urban households without access to private driveways. For these households, a lack of cheap public charging has been described as a de facto “pavement tax”, which is disincentivising EV adoption and resulting in an inequitable transition.
Our research shows that a dual-track charging strategy could help resolve the situation. Expanding access to private charging – through cross-pavement cabling, “right-to-charge” legislation for renters and planning mandates for new developments could be combined with strategic investment in public charging, to overcome the “chicken-and-egg” problem for investors uncertain about future EV demand.
Meanwhile, “smart charging” in public settings – where EV demand is matched with cheaper electricity supply – can also help close the affordability gap, by delivering cheap off-peak charging that is already available to those charging at home.
The Centre for Net Zero’s research shows that drivers respond to dynamic pricing outside of the convenience of their homes, which reduces EV running costs below those of petrol cars.
The figure below shows that, while the level of discount being offered had the strongest impact, lower-income areas showed the largest behavioural response, indicating that they may stand to gain the most from a rollout of such incentives.

Our research suggests that policymakers could encourage this type of commercial offering by creating electricity markets with strong price signals and mandating that these prices are transparent to consumers.
Integrating with clean electricity grids
Electrification is central to decarbonising the world’s economies, meaning that sufficient capacity on electricity networks is becoming a key focus.
For the rollout of EVs, pressure will be felt most on low-voltage “distribution” networks, where charging is dispersed and tends to follow existing peaks and troughs in domestic demand.
Rather than responding to this challenge by just building out the grid – with the corresponding economic and political implications – making smart charging the norm could help mitigate pressure on the network.
Evidence from the Centre for Net Zero’s trials shows that AI-managed charging can shift EV demand off-peak, reducing residential peak load by 42%, as shown in the chart below.
Additionally, the amount of time when EVs are plugged in but not moving is often substantial, giving networks hours each day in which they can shift charging, targeting periods of low demand or high renewable output.

The system value of this flexible charging is significant. In the UK, managed charging could absorb 15 terrawatt hours (TWh) of renewable electricity that would otherwise be curtailed by 2030 – equivalent to Slovenia’s entire annual consumption.
For these benefits to be realised, our research suggests that global policymakers may need to mandate interoperability across vehicles, chargers and platforms, introduce dynamic network charges that reflect local grid stress and support AI-enabled automation.
Bi-directional charging – which allows EVs to export electricity to the grid, becoming decentralised, mobile storage units – remains underexploited. This could allow EVs to contribute to the capacity of the grid, helping with frequency and providing voltage support at both local and system levels.
The nascency of such vehicle-to-grid (V2G) technology means that penetration is currently limited, but there are some markets that are further ahead.
For example, Utrecht is an early leader in real-world V2G deployment in a context of significant grid congestion, while Japan is exploring the use of V2G for system resilience, providing backup power during outages. China is also exploring V2G systems.
Our research shows that if just 25% of vehicles across six major European nations had V2G functionality, then the theoretical total capacity of the connected vehicles would exceed each of those country’s fossil-fuel power fleet.
Mandating V2G readiness at new chargepoints, aligning the value of exports with the value to the system and allowing aggregators to pool capacity from multiple EVs, could all help take V2G from theory to reality.
A sustainable EV system
It is important to note that electrification alone does not guarantee sustainability.
According to Rocky Mountain Institute (RMI) analysis, the total weight of ore needed to electrify the world’s road transport system is around 1,410mtonnes (Mt). This is 40% less than the 2,150Mt of oil extracted every year to fuel a combustion-based system. EVs concentrate resource use upfront, rather than locking in fossil-fuel extraction.
Moreover, several strategies can reduce reliance on virgin minerals, including recycling, new chemistries and improved efficiency.
Recycling, in particular, is progressing rapidly. Some 90% of lithium-ion batteries could now be recycled in some regions, according to RMI research. Under an accelerated scenario, nearly all demand could be met through recycling before 2050.
Finally, while our report focuses largely on EVs, it is important to highlight that they are not a “silver bullet” for decarbonising mobility.
Cities such as Seoul and New York have demonstrated that micromobility, public transport and street redesign can cut congestion, improve health and reduce the number of overall vehicles required.
Better system design reduces mineral demand, lowers network strain and broadens access.
The ‘decision decade’ ahead
Policy decisions made today will determine whether EVs accelerate into exponential growth or stall.
Our research suggests that governments intent on capturing the economic and environmental dividends of electrified mobility are likely to need coherent, cross-cutting policy frameworks that push the market up the steep climb of the EV S-curve.
The post Guest post: How to steer EVs towards the road of ‘mass adoption’ appeared first on Carbon Brief.
Guest post: How to steer EVs towards the road of ‘mass adoption’
Climate Change
Fossil fuel expansion threatens COP31 hosts’ credibility, experts warn
Türkiye and Australia risk losing their credibility as hosts of this year’s COP31 UN climate summit if they keep betting on fossil fuels at home, climate policy experts have warned.
As governments are expected to continue fraught talks over how to advance the global transition away from oil, coal and gas in Antalya this November, both of the co-host countries are pursuing fossil fuel expansion at home, without a national timeline to phase out their use.
Türkiye has accelerated its rollout of wind and solar energy in recent years. But that progress has yet to make a dent in the country’s dependence on fossil fuels for power, as demand growth has outpaced the renewables build-out, new analysis by Climate Action Tracker (CAT) has found.
The share of electricity generated by burning coal and fossil gas – 56% in 2025 – has barely changed since 2019, and total fossil fuel use in the power sector, and the emissions it produces, are still rising, according to the report released on Friday.
The Turkish government has also signalled that fossil fuels will remain a central component of its energy mix and has outlined plans to expand the country’s burgeoning domestic gas production in the Black Sea.
‘Need to demonstrate seriousness’
Australia, which will chair the Antalya negotiations, relies on fossil fuels for over 60% of its electricity, with coal alone still supplying 45%. According to experts, it lacks an ambitious plan to shift away from fossil fuels at home, relying heavily on carbon offsetting to reach its climate targets.
Australia is also the world’s third-largest fossil fuel exporter and has plans to expand its coal and gas production, which is backed by significant government subsidies. It recently upset climate groups by approving an extension of the Saraji open-cut coal mine in Queensland.
Türkiye says it has “final decision” at COP31 despite Australia running negotiations
Jennifer Morgan, a senior fellow with the Fletcher School of Law and Diplomacy at Tufts University and former climate envoy for Germany, said Türkiye and Australia need to demonstrate their seriousness about their COP presidency roles by leading by example on the energy transition.
“They have made progress in renewable energy,” she told reporters this week. “But I think their credibility – and their ability to therefore bring momentum and good outcomes to the COP – will depend on their taking further action at home.”
Türkiye’s electrification homework
The co-hosts’ fossil fuel policies are being scrutinised in the run-up to the annual UN climate summit, with much riding on the signal climate diplomacy sends on the energy transition.
Türkiye has so far stopped short of putting any overt political capital behind the fossil fuel transition itself. It has instead been rallying support for a new global electrification target of 35% by 2035, seen as the centrepiece of this year’s non-negotiated Action Agenda put forward by Ankara.
COP31 president Murat Kurum said last week the push to electrify economies – through measures like electric vehicles and heat pumps – will “automatically” lead to a reduction in the use of fossil fuels.
Türkiye’s own energy plan projects the country’s electrification rate would fall short on the global target and only hit 25% by 2035, according to the CAT report, which called for a “substantial step-change” in electrification policies and the deployment of more renewable power and grid infrastructure.
Coal still dominant
CAT’s analysts also warned that, without a parallel phase-out of fossil fuels, rising electricity demand risks being met in part by coal and gas, failing to deliver the emissions reductions the electrification target is meant to achieve.
Türkiye has had some success in its clean energy build-out: the share of electricity generation from wind and solar rose to 22% in 2025, up from 12% in 2020, according to the CAT report.
But coal’s role in Türkiye’s electricity mix has also grown, in both its share and absolute terms, over the past decade. And while reliance on fossil gas has declined overall, it still plays an important role in Ankara’s energy policy, which is pushing to boost domestic gas production in the Black Sea.
Dr Niklas Höhne from the NewClimate Institute said the government could demonstrate leadership as COP31 president by building on its recent successes in increasing its renewable energy capacity and announcing targets and plans to phase out coal and gas ahead of the summit.
According to CAT, Türkiye should phase out coal by 2040 and fossil gas by 2045 at the latest to align its power sector with global efforts to limit the rise in global temperatures to 1.5C above preindustrial times.
Türkiye quiet on fossil fuel roadmap
Ümit Şahin, coordinator of climate change studies at the Istanbul Policy Center (IPM), said Türkiye’s strategy is to approach the fossil fuel debate exclusively from the “end-use point of view”.
“I don’t expect any push from the Turkish presidency to the producer countries in terms of fossil fuel production,” he told reporters.
Neither does Şahin believe the Turkish presidency will throw its political weight behind another big-ticket item for COP31: a new global roadmap to transition away from fossil fuels.
Brazil took on the responsibility to voluntarily draft this document outside of the formal negotiations as a way to break the deadlock at last year’s UN summit in Belém when governments clashed over whether to develop one.
The outgoing COP30 presidency will deliver the roadmap in early November – but it will be up to Türkiye and Australia to guide countries towards a decision on how the blueprint will be taken forward, either inside or outside the negotiations.
Leadership needed
Australia’s Chris Bowen, COP31’s president of negotiations, promised to lobby producing countries to deliver a “meaningful step forward” on the fossil fuel transition in an interview with The Guardian earlier this year. But he has been quiet on the role Australia sees for the fossil fuel transition roadmap.
Natalie Jones, senior policy advisor at the International Institute for Sustainable Development (IISD), said the COP31 co-presidents “must provide clear leadership” on this process.
“This roadmap cannot be left in a dusty drawer,” she told journalists. “Rather, it must be translated into action, with all countries identifying what elements they can adopt or develop in their own national roadmap.”
Like Türkiye, Australia has yet to produce a national blueprint for winding down coal, gas and oil. Rather than moving toward a phase-out, state and federal governments have kept expanding fossil fuel licensing over the past year, according to a new analysis published this month by Climate Analytics.
Under existing policy, both coal and gas are on track to remain in Australia’s power system as late as 2050 – a trajectory the report defines as incompatible with the 1.5C limit the country says it’s committed to.
No binding end dates for the Netherlands
Analysts are watching out for national transition roadmaps as a bellwether for governments that claim to be leaders in the global shift away from fossil fuels.


The Netherlands, which co-hosted the first fossil fuel transition conference in Santa Marta this year, published its own domestic roadmap earlier this week. The document followed through on a pledge that “leadership on transitioning away from fossil fuels must be backed by concrete action, not just ambitious words”, said a spokesperson for Stientje van Veldhoven, the Dutch minister for climate policy.
But experts criticised the plan for failing to set a binding end date for the country’s fossil fuel production and use. While targeting a rapid increase in renewables capacity, the Dutch government only commits to phasing out oil, gas and coal “in the energy and feedstock system to eventually zero, and to minimise fossil use” by 2050.
Yvo de Boer, a former Dutch diplomat and executive secretary of the UN climate body, said the Dutch roadmap falls short of what’s needed to give industry the confidence to deploy capital in support of the energy transition with greater predictability.
“Ultimately, a roadmap without deadlines is nothing more than a footpath paved with good intentions,” he added, writing on LinkedIn.
The post Fossil fuel expansion threatens COP31 hosts’ credibility, experts warn appeared first on Climate Home News.
Fossil fuel expansion threatens COP31 hosts’ credibility, experts warn
Climate Change
How clean energy can boost business for Africa’s food producers
Despite millions of dollars in grants and technical help for African businesses to power farming and other food production activities with renewable energy, most efforts remain stuck at the early stages because they struggle to find the investors, markets and expertise they need to grow.
This was the message from a coalition of global institutions working on energy, water and agriculture at this month’s Africa Food Systems Forum in Kigali, Rwanda.
“Energy, agriculture, water and nutrition actors rarely design solutions together,” the Agri-Energy Coalition said in a Call to Action on powering food systems with clean energy.
Using more renewables – especially solar power – to drive food systems would reduce food losses, ensure year-round availability and affordability of healthy foods, and improve productivity, income and resilience among farmers, food processors and other small enterprises, the coalition added.
In an interview with Climate Home News at the forum, Olamide Niyi-Afuye, CEO of the Africa Minigrid Developers Association (AMDA) – a body representing private-sector developers of small-scale, off-grid electricity systems across the continent – said its members are starting to recognise this interdependence and are increasingly considering businesses that combine energy with agricultural activities.
This, Niyi-Afuye added, could lead to greater supply and use of clean power for key processes like irrigation, food processing and storage, creating new sources of revenue for both sectors.
CHN: Conversations at the Africa Food Systems Forum highlighted how organisations working in energy and agriculture often operate in silos. What has hampered their collaboration, and how has that affected Africa’s economic development?
A: Most mini-grid companies in Africa were primarily incentivised to achieve connections. If you look at some ongoing projects, you see a cost-per-connection model [of revenue]. When a subsidy is tied to achieving a connection, regardless of whether it is a productive connection, you might not notice the problem until five years down the line, when you realise the cash flows are not what you projected.
Despite African walkout, fractious land COP ends without drought deal
So now we’re in a “come-to-Jesus moment” as an industry, where we’re righting the wrongs and adjusting our business models to make sure companies do not go bust and there is some level of sustainability over the long term.
The saying is not wrong that we’ve been working in our own silos because we’ve focused on the smaller things instead of the helicopter view. There needs to be cross-pollination [between the energy and agriculture sectors] because, if we are thinking about industrialisation, energy is a key driver of industrialisation. We will not achieve that if we’re not in the room and part of those conversations.
CHN: Productive use of energy is intended to ensure electricity access goes beyond lighting homes to improving livelihoods, creating jobs and powering equipment. But what happens when farmers cannot afford the equipment they need to do that? How can energy, agriculture and equipment players work together to make the transition more accessible?
A: That’s why we’re having conversations with companies set up to de-risk the agriculture sector. By leveraging that connection, we’re able to aggregate potential energy needs and develop instruments that make equipment more affordable through bulk procurement.
We can have arrangements that make it easier for farmers and food producers to lease equipment and eventually own it over a period. There’s no real pressure to recover the capital very quickly because you’re looking at scale.


There is a whole lot across the agricultural value chain that needs energy, from farming and harvesting to food processing and value-addition. We need to understand the energy needs across the value chain and bring our members in to provide solutions.
Developers do not necessarily need to provide every productive-use solution themselves. They can partner with equipment suppliers, financiers, agribusinesses and other service providers to enable customers to use electricity productively. The objective is simple: do not just electrify communities; enable economic activity that uses that electricity.
CHN: When Africa’s industrialisation is discussed, you hear things like renewables cannot provide enough baseload, while some food processors are sceptical about switching to renewable energy because of these concerns about reliability. What is your response?
A: It’s not a controversial statement to say that a typical baseload is usually from the grid, and it’s usually from multiple sources including renewable energy. For large-scale operations, we can look at blending multiple sources of energy. But how do we solve the problem of a mid-sized farmer? We can solve it with a mini-grid using renewable energy.
Comment: Every country needs a model to help optimise its energy transition
If you go to a small farmer in a rural area, they don’t care about what source of energy they’re getting. They just want something that can help them get from A to B. If you look at the direct energy needs of farmers and food processors, I’m sure 90 percent of their consumption can be solved by renewable energy. Let’s start with that problem first. Then, as they scale, they might need to ramp up, and we can start talking about a bigger baseload.
CHN: How much agricultural value is lost because farmers and food businesses lack reliable, affordable electricity?
A: If you look at, for example, the fact that we need to maybe plant tomatoes or strawberries in Jos before it gets to Lagos [Nigeria], which most likely is by road, I can assure you that a good chunk, if not stored properly, would be bad by then. So the fact that we do not have energy is in itself a lost opportunity to maximise the potential of the agriculture sector. So until we’ve solved the energy problem, we will not salvage waste – and for me that is a lost opportunity.
CHN: AGRA, an institution focused on scaling agricultural innovations to help smallholder farmers, estimates a massive shortfall between current investments in the continent’s food systems and what is actually needed to build a resilient, profitable agricultural economy – to the tune of $180 billion per year. Can integrating energy into food systems help bridge that gap?
A: Yes – if energy can help unlock the potential to earn more money, investors will follow the money. Investments go where there is certainty, and until there is certainty around cash flow and revenue, investment will be limited.
My vision is to see more Power Purchase Agreements (PPAs) being signed between energy players and the agriculture sector. We can start by getting people into the room, understanding their pain points, crafting a framework and documentation that works for both parties, and then seeing deals happen.
This interview was shortened and edited for clarity.
The post How clean energy can boost business for Africa’s food producers appeared first on Climate Home News.
How clean energy can boost business for Africa’s food producers
Climate Change
Human security relies on adapting to the world’s new climate reality
Cristina Rumbaitis del Rio is a senior advisor on adaptation and resilience with the United Nations Foundation and Mattias Söderberg is global climate lead at Danish NGO DanChurchAid.
Recent extreme events – from wildfires and heatwaves in Europe to flash flooding following a glacier collapse in Nepal – have shocked and devastated communities, bringing years of warnings about such climate impacts to the doorstep of communities around the world.
One thing is certain: the new climate reality is here – and the adaptation strategies designed for yesterday’s world are no longer sufficient.
Attribution science has since shown that the hotter and more frequent heatwaves we’re experiencing around the world would have been virtually impossible without today’s high concentrations of greenhouse gases in the atmosphere. Climate shocks are now so severe that they reverberate through supply chains, food and water systems, financial markets and the movement of people.
They must be a catalyst for a new way of thinking about adaptation and resilience, and how we finance solutions that work. A failure to invest in adaptation in one region can create costs far beyond it, which is why the concept of shared resilience is critical for leaders to grasp.
Investment not charity
At the UN General Assembly (UNGA 81) this month, leaders have an opportunity to translate today’s urgency into concrete commitments on adaptation and loss and damage finance ahead of COP31.
Those commitments are needed to underpin global stability, shared prosperity and human security. Governments should use this moment to show what a new response looks like: finance that reaches communities faster, supports locally grounded solutions, strengthens national systems, and helps countries prepare before the next shock arrives.
If we want sustained economic growth, food and water security, and resilient and prosperous societies across every region, adaptation must be at the heart of today’s development and security agenda. It cannot be just a future planning consideration or a narrow issue for climate ministries. Adaptation is now everyone’s business – and it must be financed fast and fair.
UN Secretary-General António Guterres has repeatedly framed climate finance as an investment rather than charity, warning that “a world in climate chaos cannot be a world at peace” and describing human security as freedom from the chronic and sudden disruptions that climate change multiplies.
What’s more, adaptation delivers a real return-on-investment, with researchers estimating that every dollar invested produces $10 in benefits, saving lives, protecting livelihoods, and reducing the costs of future disasters.
Hitting adaptation limits
The urgency to scale adaptation systematically is growing. The newly released “Limiting Overshoot” report from the UN Environment Programme (UNEP) confirms what scientists have long warned: exceeding global warming of 1.5C is now unavoidable under current policies. Yet, how high temperatures rise – and how long the world remains above the 1.5C threshold – will determine whether communities, economies and entire ecosystems can keep pace.
There are limits to adaptation. When we breach those limits, lives and livelihoods are lost, and people and ecosystems suffer greatly. We cannot simply build yesterday’s infrastructure a little stronger and assume it will be enough.
Nepal flood destruction shows “limits to adaptation”, scientists say
We need to fundamentally change the systems that determine how societies anticipate, absorb and recover from both immediate and evolving non-linear climate shocks. This includes transforming physical systems, such as infrastructure, and the governance systems that affect where and how we live to how we maintain our health and wellbeing.
Finance today is nowhere near the scale of the challenge.
The UNEP “Adaptation Gap Report 2025” estimates the shortfall in adaptation finance in developing countries at $284 billion–$339 billion a year – roughly 12 to 14 times current international public flows of around $26 billion. That gap is a development, economic and human security problem, especially for the most vulnerable populations who have contributed the least to causing the climate crisis.
Building resilience into financial systems
There are already signs of what a more systemic adaptation response could look like. Communities around the world are delivering practical solutions at local level, even as adaptation finance remains notoriously, and appallingly, difficult to access. Cyclone-resistant homes, local forecasting capacities, drought-resistant crops, heat insurance for pregnant informal workers and mangrove restoration are rooted in local knowledge and lived experience, while delivering benefits far beyond the communities where they originate from.
But local innovation alone is not enough; the systems around it need to be resilient too.
Jamaica offers one example. The country has built a multi-layered disaster-risk financing framework, including a catastrophe bond and contingency funds, through sustained fiscal discipline and proactive investment. Its debt-to-GDP ratio fell from around 147% in 2012 to around 62% in 202-25. That groundwork matters when disaster strikes.
Hurricane Melissa’s destruction shows need for climate resilience push
Following Hurricane Melissa, Jamaica was able to secure billions of dollars in reconstruction financing from multilateral banks – finance that might otherwise have been much harder to access. The lesson is clear: resilience can be built into the financial architecture of a country before a crisis arrives. That is the shift we now need to make at scale.
The foundations already exist – in Kingston’s fiscal reforms, in early-warning systems from the Sahel to the Pacific, and in every community that adapted before disaster struck. What is still missing is the political will, and the finance, to take what works and put it to work everywhere, at the speed our world’s new climate reality demands.
To hear more on this issue from high-level officials and experts, sign up for this event during Climate Week NYC, at 8am EDT on September 24 (in person or online), moderated by Climate Home News Editor Megan Rowling: Adapting to the New Climate Reality: Why Accelerating Impacts Demand New Responses.
The post Human security relies on adapting to the world’s new climate reality appeared first on Climate Home News.
Human security relies on adapting to the world’s new climate reality
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