Developing countries require hundreds of billions of dollars in investment every year to help them adapt to the rising threat of climate change.
Without this investment, more extreme floods, fires and hurricanes will place many more lives at risk and millions of people in the global south will be pushed into extreme poverty.
Yet, as it stands, there are major gaps in global adaptation finance.
In the new Adaptation Finance Gap Update, part of the UN Environment Programme (UNEP) Adaptation Gap Report 2023, we examine recent trends in adaptation funding.
Specifically, we focus on the flow of public adaptation funds from the governments of developed countries to developing countries, since the implementation of the Paris Agreement.
In this article, we identify three major gaps in adaptation finance and explain why these gaps have emerged even as nations commit to scaling up these funds.
Financial shortfall
Adaptation costs for developing countries are estimated at between $215bn and $387bn annually this decade, according to the latest Adaptation Finance Gap Update report.
Spending from the public funds of developed nations, while not the only source of adaptation finance, remains a crucial source, especially for low-income countries.
As it stands, people in the least developed countries (LDCs) and small-island states are often more exposed to climate hazards and more likely to be killed by climate-related disasters. This is despite the fact that these nations bear very little responsibility for causing climate change.
Under the Paris Agreement, developed countries agreed to achieve a balance in the amount of climate finance to adaptation and mitigation. However, far more funds have been channelled towards cutting emissions than preparing for climate impacts.
The commitments made by developed countries so far fall drastically short of the costs and needs expressed by developing countries.
Observed flows of public adaptation finance from these nations have been well below $30bn each year.
At the COP26 climate summit in Glasgow, developed countries pledged to double their adaptation finance contribution by 2025. However, as the chart below shows, progress towards this goal has fluctuated since the baseline year of 2019 (figures are not yet available for 2022 and 2023.)

In 2019, adaptation finance was estimated in our analysis at $19.2bn. To meet the commitment of doubling this amount by 2025, developed countries should aim to contribute at least $38.4bn per year toward developing countries.
However, a promising 31% increase in funding observed in 2020 was followed by a subsequent 15% decrease in 2021, complicating the path to achieving the target. It is noteworthy that while adaptation finance declined, finance for mitigation – that is, cutting emissions – continued to grow.
To reach the goal of doubling the finance, a consistent 16% average annual increase is required going forward.
Lack of local finance
Local organisations, people and communities are at the forefront of experiencing climate change impacts. Often, they are the most engaged and innovative in developing sustainable solutions to navigate these challenges.
Therefore, it is critical that these local entities are meaningfully involved in funded adaptation projects. However, there has been a lack of clarity on how much adaptation funding is intentionally directed to benefit local communities.
Our analysis provides comprehensive estimates of adaptation finance that mainly focuses on local communities, which cover both bilateral and multilateral sources.
Previous assessments have only covered dedicated climate funds such as the Green Climate Fund (GCF), the Adaptation Fund and the Global Environmental Facility (GEF). Despite their significance, these sources still only constitute a minor share – roughly 9% – of total public adaptation finance.
Our assessment reveals that less than 17% of total international public adaptation finance was allocated to projects with a specific focus on local communities.
Even though this represents an increase from a previous estimate of about 10%, it underscores a persistent and pressing need to increase financial support to local communities.
Struggling to reach the ground
Effective use of funds is essential to ensure that they serve their intended purpose, rather than inadvertently creating new challenges.
However, our research reveals that a significant portion of funding does not even reach its target.
Between 2017 to 2021, we estimate that only 66% of the allocated funds were successfully disbursed to their recipient countries. The remaining funds have not reached developing countries, for various reasons including project delays and lack of capacity.
In contrast, 98% of general development finance, covering other issues such as education and healthcare, was successfully disbursed within the same period.
This highlights the unique barriers in disbursing funds for adaptation projects. These include inadequate understanding of local markets during project planning, limited climate policy knowledge among decision-makers and bureaucratic delays in fund approval and disbursement.
The adaptation disbursement gap varies regionally. South Asia received merely 51% of allocated funds, whereas sub-Saharan Africa, home to most LDCs, had a higher disbursement ratio of 79%.
This discrepancy is likely due to sub-Saharan Africa receiving a higher amount of grants, which tend to have better disbursement ratios.

It is essential to note that these figures predominantly represent data from bilateral sources, meaning funding provided country-to-country.
Comprehensive data on disbursements from multilateral organisations, including the World Bank and other development banks, remains limited. This is significant as most (61%) international public adaptation finance for the global south comes from these sources.
Moving forward
Our analysis shows that adaptation finance goes beyond being a single aggregate number and requires alignment with local situations.
It also indicates that a collaborative approach involving both finance providers and recipients is required to identify and solve existing gaps.
Bridging these gaps could drive a shift towards climate justice, wherein vulnerable, developing countries are not excessively burdened by climate change. Conversely, neglecting them could exacerbate loss and damage in those countries.
Negotiations at the upcoming COP28 in the United Arab Emirates (UAE) present an opportunity for world leaders to establish measures to address these gaps.
The post Guest post: Three major gaps in climate-adaptation finance for developing countries appeared first on Carbon Brief.
Guest post: Three major gaps in climate-adaptation finance for developing countries
Climate Change
Big fishing nations secure last-minute seat to write rules on deep sea conservation
As a treaty to protect the High Seas entered into force this month with backing from more than 80 countries, major fishing nations China, Japan and Brazil secured a last-minute seat at the table to negotiate the procedural rules, funding and other key issues ahead of the treaty’s first COP.
The Biodiversity Beyond National Jurisdiction (BBNJ) pact – known as the High Seas Treaty – was agreed in 2023. It is seen as key to achieving a global goal to protect at least 30% of the planet’s ecosystems by 2030, as it lays the legal foundation for creating international marine protected areas (MPAs) in the deep ocean. The high seas encompass two-thirds of the world’s ocean.
Last September, the treaty reached the key threshold of 60 national ratifications needed for it to enter into force – a number that has kept growing and currently stands at 83. In total, 145 countries have signed the pact, which indicates their intention to ratify it. The treaty formally took effect on January 17.
“In a world of accelerating crises – climate change, biodiversity loss and pollution – the agreement fills a critical governance gap to secure a resilient and productive ocean for all,” UN Secretary-General António Guterres said in a statement.
Julio Cordano, Chile’s director of environment, climate change and oceans, said the treaty is “one of the most important victories of our time”. He added that the Nazca and Salas y Gómez ridge – off the coast of South America in the Pacific – could be one of the first intact biodiversity hotspots to gain protection.
Scientists have warned the ocean is losing its capacity to act as a carbon sink, as emissions and global temperatures rise. Currently, the ocean traps around 90% of the excess planetary heat building up from global warming. Marine protected areas could become a tool to restore “blue carbon sinks”, by boosting carbon absorption in the seafloor and protecting carbon-trapping organisms such as microalgae.
Last-minute ratifications
Countries that have ratified the BBNJ will now be bound by some of its rules, including a key provision requiring countries to carry out environmental impact assessments (EIA) for activities that could have an impact on the deep ocean’s biodiversity, such as fisheries.
Activities that affect the ocean floor, such as deep-sea mining, will still fall under the jurisdiction of the International Seabed Authority (ISA).
Nations are still negotiating the rules of the BBNJ’s other provisions, including creating new MPAs and sharing genetic resources from biodiversity in the deep ocean. They will meet in one last negotiating session in late March, ahead of the treaty’s first COP (conference of the parties) set to take place in late 2026 or early 2027.
China and Japan – which are major fishing nations that operate in deep waters – ratified the BBNJ in December 2025, just as the treaty was about to enter into force. Other top fishing nations on the high seas like South Korea and Spain had already ratified the BBNJ last year.
Power play: Can a defensive Europe stick with decarbonisation in Davos?
Tom Pickerell, ocean programme director at the World Resources Institute (WRI), said that while the last-minute ratifications from China, Japan and Brazil were not required for the treaty’s entry into force, they were about high-seas players ensuring they have a “seat at the table”.
“As major fishing nations and geopolitical powers, these countries recognise that upcoming BBNJ COP negotiations will shape rules affecting critical commercial sectors – from shipping and fisheries to biotechnology – and influence how governments engage with the treaty going forward,” Pickerell told Climate Home News.
Some major Western countries – including the US, Canada, Germany and the UK – have yet to ratify the treaty and unless they do, they will be left out of drafting its procedural rules. A group of 18 environmental groups urged the UK government to ratify it quickly, saying it would be a “failure of leadership” to miss the BBNJ’s first COP.
Finalising the rules
Countries will meet from March 23 to April 2 for the treaty’s last “preparatory commission” (PrepCom) session in New York, which is set to draft a proposal for the treaty’s procedural rules, among them on funding processes and where the secretariat will be hosted – with current offers coming from China in the city of Xiamen, Chile’s Valparaiso and Brussels in Belgium.
Janine Felson, a diplomat from Belize and co-chair of the “PrepCom”, told journalists in an online briefing “we’re now at a critical stage” because, with the treaty having entered into force, the preparatory commission is “pretty much a definitive moment for the agreement”.
Felson said countries will meet to “tidy up those rules that are necessary for the conference of the parties to convene” and for states to begin implementation. The first COP will adopt the rules of engagement.
She noted there are “some contentious issues” on whether the BBNJ should follow the structure of other international treaties such as the Convention on Biological Diversity (CBD), as well as differing opinions on how prescriptive its procedures should be.
“While there is this tension on how far can we be held to precedent, there is also recognition that this BBNJ agreement has quite a bit to contribute in enhancing global ocean governance,” she added.
The post Big fishing nations secure last-minute seat to write rules on deep sea conservation appeared first on Climate Home News.
Big fishing nations secure last-minute seat to write rules on deep sea conservation
Climate Change
Climate at Davos: Energy security in the geopolitical driving seat
The annual World Economic Forum got underway on Tuesday in the Swiss ski resort of Davos, providing a snowy stage for government and business leaders to opine on international affairs. With attention focused on the latest crisis – a potential US-European trade war over Greenland – climate change has slid down the agenda.
Despite this, a number of panels are addressing issues like electric vehicles, energy security and climate science. Keep up with top takeaways from those discussions and other climate news from Davos in our bulletin, which we’ll update throughout the day.
From oil to electrons – energy security enters a new era
Energy crises spurred by geopolitical tensions are nothing new – remember the 1970s oil shock spurred by the embargo Arab producers slapped on countries that had supported Israel during the Yom Kippur War, leading to rocketing inflation and huge economic pain.
But, a Davos panel on energy security heard, the situation has since changed. Oil now accounts for less than 30% of the world’s energy supply, down from more than 50% in 1973. This shift, combined with a supply glut, means oil is taking more of a back seat, according to International Energy Agency boss Fatih Birol.
Instead, in an “age of electricity” driven by transport and technology, energy diplomacy is more focused on key elements of that supply chain, in the form of critical minerals, natural gas and the security buffer renewables can provide. That requires new thinking, Birol added.
“Energy and geopolitics were always interwoven but I have never ever seen that the energy security risks are so multiplied,” he said. “Energy security, in my view, should be elevated to the level of national security today.”
In this context, he noted how many countries are now seeking to generate their own energy as far as possible, including from nuclear and renewables, and when doing energy deals, they are considering not only costs but also whether they can rely on partners in the long-term.
In the case of Europe – which saw energy prices jump after sanctions on Russian gas imports in the wake of Moscow’s invasion of Ukraine – energy security rooted in homegrown supply is a top priority, European Commission President Ursula von der Leyen said in Davos on Tuesday.
Outlining the bloc’s “affordable energy action plan” in a keynote speech at the World Economic Forum, she emphasised that Europe is “massively investing in our energy security and independence” with interconnectors and grids based on domestically produced sources of power.
The EU, she said, is trying to promote nuclear and renewables as much as possible “to bring down prices and cut dependencies; to put an end to price volatility, manipulation and supply shocks,” calling for a faster transition to clean energy.
“Because homegrown, reliable, resilient and cheaper energy will drive our economic growth and deliver for Europeans and secure our independence,” she added.
Comment – Power play: Can a defensive Europe stick with decarbonisation in Davos?
AES boss calls for “more technical talk” on supply chains
Earlier, the energy security panel tackled the risks related to supply chains for clean energy and electrification, which are being partly fuelled by rising demand from data centres and electric vehicles.
The minerals and metals that are required for batteries, cables and other components are largely under the control of China, which has invested massively in extracting and processing those materials both at home and overseas. Efforts to boost energy security by breaking dependence on China will continue shaping diplomacy now and in the future, the experts noted.
Copper – a key raw material for the energy transition – is set for a 70% increase in demand over the next 25 years, said Mike Henry, CEO of mining giant BHP, with remaining deposits now harder to exploit. Prices are on an upward trend, and this offers opportunities for Latin America, a region rich in the metal, he added.
At ‘Davos of mining’, Saudi Arabia shapes new narrative on minerals
Andrés Gluski, CEO of AES – which describes itself as “the largest US-based global power company”, generating and selling all kinds of energy to companies – said there is a lack of discussion about supply chains compared with ideological positioning on energy sources.
Instead he called for “more technical talk” about boosting battery storage to smooth out electricity supply and using existing infrastructure “smarter”. While new nuclear technologies such as small modular reactors are promising, it will be at least a decade before they can be deployed effectively, he noted.
In the meantime, with electricity demand rising rapidly, the politicisation of the debate around renewables as an energy source “makes no sense whatsoever”, he added.
The post Climate at Davos: Energy security in the geopolitical driving seat appeared first on Climate Home News.
Climate at Davos: Energy security in the geopolitical driving seat
Climate Change
A Record Wildfire Season Inspires Wyoming to Prepare for an Increasingly Fiery Future
As the Cowboy State faces larger and costlier blazes, scientists warn that the flames could make many of its iconic landscapes unrecognizable within decades.
In six generations, Jake Christian’s family had never seen a fire like the one that blazed toward his ranch near Buffalo, Wyoming, late in the summer of 2024. Its flames towered a dozen feet in the air, consuming grassland at a terrifying speed and jumping a four-lane highway on its race northward.
A Record Wildfire Season Inspires Wyoming to Prepare for an Increasingly Fiery Future
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