The Urgent Need to Scale Adaptation Finance as Global Climate Change Vulnerability Grows

The recently concluded COP28 conference in Dubai saw world leaders acknowledging the substantial gap in funding for climate change adaptations across various countries. A new report launched at the conference reveals that this gap could amount to a staggering $366 billion annually.

This recognition comes amidst the first-ever global stocktake, a process designed to assess the collective progress of nations and stakeholders towards meeting the goals of the Paris Climate Change Agreement, as well as identifying areas where progress is lacking.

A major focus of the global stocktake has been on adaptation, with world leaders highlighting the urgent need for countries to expedite efforts in strengthening their resilience to climate change. Particularly vulnerable developing nations have emphasised the necessity for significantly increased resources to support their adaptation initiatives.

In addition to acknowledging the adaptation funding gap, leaders at COP28 have also agreed on the crucial need to rapidly escalate support for adaptation and loss and damage, surpassing the goal of doubling adaptation finance.

The latest United Nations Environment Programme (UNEP) Adaptation Gap Report indicates that adaptation finance must reach between $194 billion and $366 billion annually. However, the report estimates that by 2025, the actual funding for adaptation may only amount to around $40 billion.

Simon Stiell, the UN climate change executive secretary, highlighted the widening adaptation gap in a speech at the conference, emphasising the need to prioritise adaptation efforts alongside mitigation. He stressed the essential nature of adaptation as a means of preparedness and strengthening resilience, urging nations to take proactive measures before it is too late.

Stiell also called for a significant scaling up of adaptation finance and advocated for a wider pool of contributors, including the private sector. He stressed the importance of funding being accessible, affordable, and timely, and underscored the preference of countries for grants over loans to support their climate change adaptation initiatives without the burden of crippling debt.

Recognising the valuable contribution of developing countries in building resilience and reducing vulnerability, COP28 leaders emphasised the vital role of natural ecosystems in adaptation, particularly through ecosystem-based solutions with a specific focus on water and mountain conservation.

As the world grapples with the escalating challenges posed by climate change, the urgent need to bridge the substantial gap in adaptation finance has become increasingly apparent. The COP28 conference has shed light on the critical nature of prioritising and accelerating adaptation efforts, particularly in vulnerable developing nations, to effectively address the growing threat of climate change.