UN report highlights low climate finance for vulnerable countries

Climate finance available for adaptation efforts in vulnerable, developing countries is too little in comparison to the severe impacts of climate change these countries face, a new United Nations Environment Programme (UNEP) report titled: ‘Adaptation Gap report 2022’ said on Thursday.

International adaptation finance flows to developing countries are 5-10 times below estimated needs and the gap continues to widen, the report has said.

Adaptation finance provided by developed countries was only $29 billion in 2020, 34% of total climate finance available and only a 4% increase since 2019. In comparison, estimated annual adaptation needs globally are $ 160-340 billion by 2030 and $ 315- 565 billion by 2050 according to the report.

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“Adaptation needs in the developing world are set to skyrocket to as much as $340 billion a year by 2030. Yet adaptation support today stands at less than one-tenth of that amount. The most vulnerable people and communities are paying the price. This is unacceptable. Adaptation must be treated with a seriousness that reflects the equal worth of all members of the human family. It’s time for a global climate adaptation overhaul that puts aside excuses and picks up the toolbox to fix the problems,” said Antonio Guterres, UN Secretary General during the launch of the report.

“ We need to know what kind of soft loans are available, what kind of credit mechanisms, insurance schemes…these are the issues we will flag very strongly. We need more clarity on adaptation at this COP…the quantification of what we need is not the right way to put the issue on the table. Anticipating how economic activities will have to change, how the basic functions of infrastructure will change. What is the funding available to small, medium and micro industries which really need to adapt to climate impacts…” said Leena Nandan, secretary, ministry of environment, forests and climate change during a briefing on Thursday. She was speaking on India’s expectations from COP 27, scheduled from November 6 at Sharm El-Sheikh, Egypt.

“Significant acceleration is needed if a doubling of 2019 finance flows by 2025 is to be met, as urged by the Glasgow Climate Pact, adopted at COP26 in 2021,” the report said . The UN’s latest assessment suggests current policies and nationally determined contributions announced by countries will lead to a 2.8 degree C warming.

“Adaptation must therefore take centre stage alongside mitigation in the global response to climate change. However, even ambitious investments in adaptation cannot fully prevent climate impacts, so losses and damages must be addressed adequately,” it added.

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At least 84% of Parties to the UN Framework Convention on Climate Change (UNFCCC) including India have established adaptation plans, strategies, laws and policies. About half of those have more than one planning instrument in place according to UNEP. India is also among few countries that has included its adaptation finance needs in its NDC or national action plan. India’s updated NDC states it will strive to better adapt to climate change by enhancing investments in development programmes in sectors vulnerable to climate change, particularly agriculture, water resources, the Himalayan region, coastal regions, health and disaster management and work to mobilize domestic and new and additional funds from developed countries.

“Without a step change in financial support, adaptation actions could be outstripped by accelerating climate impacts, which would further widen the adaptation implementation gap. In addition, only three out of 10 principal adaptation actions (40% of the funding volume) reported by climate finance providers to the Organisation for Economic Co-operation and Development (OECD) are explicitly targeting climate risk reduction, while the degree to which all other actions address adaptation is unclear. Better labelling of financial support could help clarify its contribution to adaptation,” the report said.