# Rich Nations Fail to Finance Climate Adaptation as Needs Soar to $310 Billion
**GENEVA, SWITZERLAND**—The world’s poorest nations face an overwhelming and rapidly widening funding gap to protect themselves from escalating climate change impacts, with developed countries falling severely short of their financial commitments, according to a stark new report from the United Nations Environment Programme (UNEP). The latest “Adaptation Gap Report” reveals that developing nations will require an estimated **more than $310 billion annually** by 2035 to prepare for climate disasters, yet received only $26 billion in international adaptation finance in 2023—a decline from the previous year.
The findings underscore a crisis of implementation and accountability, signaling that developed nations are on track to miss critical climate finance goals, potentially plunging vulnerable countries into an “adaptation investment trap” of rising climate-induced debt.
## Financial Disparity Threatens Global Climate Pacts
The UN analysis, titled “Running on Empty,” calculates a staggering shortfall, projecting that the developing world’s adaptation needs are currently **12 to 14 times greater** than the current flow of international public finance. This immense disparity casts serious doubt on the ability of low-income countries to implement essential protective measures, from building resilient infrastructure to developing heat-tolerant crops.
The $26 billion provided in 2023 marks a decrease from $27.9 billion in 2022, primarily attributed to reduced funding from multilateral development banks. This decline puts developed nations in jeopardy of breaching the Glasgow Climate Pact, agreed at COP26, which aimed to double 2019 adaptation finance levels by 2025.
“Even amid tight budgets and competing priorities, the reality is simple: if we do not invest in adaptation now, we will face escalating costs every year,” said Inger Andersen, UNEP Executive Director.
Furthermore, the report cautions that the recently agreed **New Collective Quantified Goal (NCQG)**, aiming to raise at least $300 billion annually by 2035 for both climate mitigation and adaptation, will be “insufficient” to meet adaptation needs alone. Factoring in inflation, the real cost of developing world adaptation by 2035 could climb to over $500 billion, severely outpacing the NCQG target.
## Debt Risks and Implementation Hurdles
The lack of grant-based funding is compounding the challenge. The report observes a concerning trend: although grants and concessional loans once dominated, non-concessional finance—loans provided at or near market rates—is on the rise. In 2023, non-concessional loans exceeded concessional ones for the first time.
This shift raises serious equity and affordability concerns, creating a plausible “adaptation investment trap.” As developing countries borrow more to finance climate defenses, rising climate-related disasters could further escalate their indebtedness, making it harder to invest in future adaptation. Analysis accompanying the report suggests many developing countries are already spending more on servicing existing debt than they receive in climate finance.
**Key Findings on Adaptation Progress:**
* **Planning vs. Execution:** Eighty-seven percent of countries have at least one national adaptation plan or strategy in place, fulfilling initial planning requirements. However, 36 of those plans are now expired or outdated.
* **Capacity Gaps:** Twenty-five countries, predominantly developing nations, lack any national adaptation plan, suggesting financial and technical resource constraints hinder basic planning.
* **Reporting Disparities:** Developed countries are far more likely to submit detailed Biennial Transparency Reports (BTRs) on their climate progress than developing nations. Only 21% of Small Island Developing States (SIDS) and 14% of Least Developed Countries (LDCs) have submitted comprehensive BTRs, indicating that reporting requirements are most burdensome for those with the least capacity.
## Urgent Need for Non-Debt Solutions
The dire financial outlook underscores the urgency for developed nations to prioritize grants and non-debt creating instruments, as highlighted in the NCQG text. While private sector finance could contribute an estimated $50 billion annually by 2035—covering up to 20% of the needs—achieving this level requires significant targeted policy action, given current private flows are estimated at only $5 billion.
Experts warn that without a dramatic reversal in these funding trends, unnecessary suffering and economic disruption will ensue globally. Addressing the adaptation gap remains a crucial test of international cooperation and climate justice ahead of the next major climate summit.
