UN Reports $300B Annual Shortfall in Climate Adaptation Funding for Developing Countries by 2035

The UN Environment Programme's Adaptation Gap Report 2025 highlights a massive shortfall in funding for climate adaptation in developing countries, estimating a need of over $310 billion annually by 2035 to cope with climate change impacts such as floods, storms, and heat. Despite some progress, including most countries having national adaptation plans, current international public adaptation finance decreased from $28 billion in 2022 to $26 billion in 2023, far below the needed levels. UN Secretary-General António Guterres emphasized that adaptation is a lifeline, not a cost, warning that failing to close this funding gap leaves vulnerable populations exposed to devastating climate consequences. The report underscores that investments in adaptation, such as coastal protection and urban nature-based solutions, are cost-effective compared to the damage avoided. The upcoming COP30 climate conference in Brazil is expected to focus heavily on ramping up financial support for developing nations to address this gap. The findings also reflect a troubling trend where pledges like those from COP26 are not being met, posing serious challenges for vulnerable small and developing nations facing escalating climate risks.