A recent UN report highlights the growing human and economic costs of climate change, with this year's heatwaves, droughts, wildfires, and floods illustrating the disproportionate impact on vulnerable populations. The United Nations Environment Programme (Unep) notes that least developed countries and small island developing states have limited adaptive capacity and access to resources. The 2026 Adaptation Gap Report emphasizes the need for countries to prepare for climate change effects, but funding remains a significant challenge.
The report estimates that developing countries will require approximately $305 billion annually by 2035 to adapt to climate impacts, rising to $420 billion when inflation is considered. However, international public funding from developed to developing countries reached only $28.2 billion to $31.7 billion in 2024, a mere $1 billion increase from the previous year. Even if the COP30 call to triple adaptation finance by 2035 is met, it would cover only 20% to 29% of developing countries' estimated needs.
The situation is slightly better for least developed countries and small island states, with tripling funding potentially covering 49% to 84% of their estimated adaptation needs. Funding to these vulnerable countries increased in real terms between 2019 and 2024 but has declined since its 2022 peak. The report also raises concerns about the growing reliance on loans to fund climate adaptation, with loans accounting for 55% of adaptation finance to developing countries in 2024, compared to 44% provided as grants.
The report stresses that grants and loans offered on favorable terms are crucial for the poorest and most vulnerable countries, many of which are struggling with debt. On a positive note, the Glasgow Climate Pact commitment to double adaptation finance from 2019 levels to about $40 billion by 2025 could still be achieved. Multilateral development banks are also expected to have increased their funding significantly in 2025.
Financial support between developing countries is growing, rising from $3.8 billion in 2019 to $9.6 billion in 2024. However, this funding does not count towards the commitments made by developed countries to support developing nations. The report also emphasizes that more money alone is not enough; governments must improve their planning and delivery of climate adaptation, with clearer responsibilities, better coordination, and public participation.
The report cautions that even the best adaptation measures cannot prevent all harm caused by climate change, and some losses become unavoidable when communities reach their coping limits. Between 2020 and 2025, low- and middle-income countries accounted for 99% of the 765 million people affected by floods and landslides. Climate change also affects people's mental health, cultural heritage, biodiversity, and ecosystems, which are difficult to measure in monetary terms.
Countries are struggling to secure funding to deal with losses and damage that cannot be avoided. In the first funding round of the fund for responding to Loss and Damage, 119 developing countries submitted requests totaling $2.8 billion, far exceeding the fund's initial allocation of $342 million. The report emphasizes the need for more reliable financial and technical support, simpler application procedures, and greater capacity to assess damage.
Key points
- Developing countries require up to $420 billion annually by 2035 to adapt to climate change.
- International public funding reached only $28.2 billion to $31.7 billion in 2024.
- Tripling adaptation finance by 2035 would cover only 20% to 29% of developing countries' estimated needs.
