Developing countries could cover less than a third of their climate adaptation needs even if wealthy nations meet their 2035 funding pledge.
The adaptation funding gap facing developing countries will remain substantial even if wealthy nations triple support by 2035, UNEP has warned. That increase would cover less than a third of projected needs after accounting for inflation.
In its 2026 Adaptation Gap Report, titled Ready? Not, the United Nations Environment Programme estimates annual needs of about US$305 billion by 2035. However, international public adaptation finance grew by just US$1 billion between 2023 and 2024.
Funding from developed to developing countries reached between US$28.2 billion and US$31.7 billion in 2024. Meanwhile, the costs of preparing vulnerable nations for worsening climate impacts continue to rise.
Adaptation funding gap outpaces promised support
Meeting the COP30 aspiration to triple international public adaptation finance would bring annual funding to US$85 billion–US$120 billion. However, UNEP estimates this would cover only 20–29 per cent of projected needs after inflation.
UNEP Executive Director Inger Andersen warned that countries already struggle to prepare for current climate conditions. Warming beyond the 1.5°C threshold would add to that challenge.
She urged governments gathering at COP31 in Türkiye to intensify efforts towards the funding target. Still, she said countries would need greater resources to protect lives, livelihoods and economies.
Least developed countries and small island developing states received more adaptation finance in 2024 than in 2019. Yet funding remained below its 2022 peak despite their heightened vulnerability.
Private-sector adaptation requirements could also almost double estimated annual financing needs. Although private investment is growing, UNEP estimates it could narrow the gap for public-oriented adaptation measures by only 15–20 per cent.
Much of that investment serves private-sector needs or ultimately relies on financing from developing countries themselves.
Institutional barriers limit climate responses
Beyond funding, UNEP identified weak institutions as a major barrier to turning adaptation priorities into practical action. Governments have nevertheless made progress through climate laws, better coordination, policy-learning platforms and dedicated climate finance mechanisms.
The report called for stronger arrangements across sectors and levels of government to move plans into implementation. It also warned that financing for climate-related losses and damages remains inadequate and difficult to access.
The Fund for Responding to Loss and Damage received US$2.8 billion in requests during its first funding round. By comparison, its initial allocation stood at US$342 million.
Meanwhile, complex application procedures and limited institutional capacity restrict affected countries’ access to support. UNEP called for simpler procedures, stronger assessment capacity and predictable financial and technical assistance.
It also urged greater involvement of affected communities in designing responses to climate-related losses and damages.
