UNEP released the Adaptation Gap Report 2024 titled Come Hell and High Water. It emphasizes the urgent need for increased climate adaptation efforts and adaptation financing for developing nations.
Key Findings
- Adaptation Finance Gap:
- Current funding: USD 28 billion (2022), only 5% of the Glasgow Climate Pact requirements.
- Projected Need: USD 387 billion annually by 2030 for developing countries.
- Funding Crunch:
- Private sector investments cover only one-third of the adaptation finance gap, highlighting untapped opportunities.
- Impact of Global Warming:
- Emissions Gap Report 2024 projects a global temperature rise of 6°C to 3.1°C by 2100.
- Developing nations are disproportionately affected by climate-induced events (e.g., floods in Nepal, Nigeria, and Chad).
- National Adaptation Plans (NAPs):
- 171 countries have at least one adaptation policy.
- 26 countries lack adaptation plans, with 10 showing no interest in developing them.
- UAE Framework for Global Climate Resilience (UAE-FGCR) introduced at COP28 focuses on climate adaptation but faces implementation delays.
- Transformational Adaptation:
- UNEP advocates a strategic shift from reactive to transformational adaptation.
- Focuses on harder-to-finance areas like ecosystem preservation and cultural heritage.
Challenges in Climate Adaptation Financing
- Limited Financial Capacity:
- Developing nations struggle with costly adaptation projects like resilient infrastructure and water security systems.
- Shortfall in Developed Nations’ Contributions:
- Developed countries have missed the USD 100 billion funding target set for 2020.
- High-Interest Loans:
- Current funding often involves high-interest loans, worsening the debt crisis for vulnerable nations.
- Urgency for COP29 Commitments:
- Doubling adaptation finance by 2025 will only partially address the gap, requiring innovative financial solutions.
Way Forward
- Strong Financial Commitments:
- Push for robust funding pledges at UNFCCC COP29.
- Innovative Funding Models:
- Explore risk finance, resilience bonds, debt-for-adaptation swaps, and ecosystem service payments.
- Reforms in Financial Institutions:
- Facilitate access to non-debt-increasing funds for adaptation projects.
- Capacity Building and Technology Transfer:
- Support transformational adaptation across sectors and scales, integrating it into development priorities.
The Adaptation Gap Report 2024 underscores the critical importance of addressing climate adaptation financing to support developing nations. Bridging the adaptation finance gap will be central to UNFCCC COP29 negotiations, ensuring global resilience to the escalating impacts of climate change.
