Developing countries face a large climate adaptation financing gap: estimated annual needs reach $305 billion by 2035, compared with $28.2 billion to $31.7 billion in international public flows from developed to developing countries in 2024.
The United Nations Environment Programme (UNEP) links the mismatch to worsening climate impacts and mounting losses and damages. It says warming is projected to exceed 1.5°C and that adequately financed adaptation can reduce risks and build resilience.
UNEP estimates that a threefold increase in international public finance for developing countries by 2035, as sought under the COP30 aspiration, would cover only 20% to 29% of their estimated needs. For least developed countries and small island developing states, tripling flows could meet 49% to 84% of their needs.
The 2024 finance total was about $1 billion higher than the previous year. Flows to least developed countries and small island developing states rose in real terms from 2019 to 2024, but stayed below their 2022 peak.
UNEP identifies obstacles to carrying out adaptation plans as well as a shortage of funding. Institutional constraints can impede implementation, while complex procedures and limited capacity make support for losses and damages harder to access.
The Fund for responding to Loss and Damage received $2.8 billion in requests in its first round, against an initial allocation of $342 million. The report says financing to address losses and damages remains inadequate relative to identified needs.
Some channels are expanding: the report describes increased South-South support and private-sector adaptation finance. It also notes government efforts to strengthen institutions responsible for putting adaptation priorities into practice.
For the Glasgow Climate Pact’s 2025 commitment, UNEP says doubling finance from its 2019 level to $40 billion could still be achieved. The report says multilateral development banks likely increased their financing significantly in 2025.
