UNEP’s Adaptation Gap Report 2023: Underfinanced. Underprepared – Inadequate investment and planning on climate adaptation leaves world exposed

In 2023, temperature records toppled, while storms, floods, droughts and heatwaves caused devastation. UNEP’s Adaptation Gap Report 2023: Underfinanced. Underprepared – Inadequate investment and planning on climate adaptation leaves world exposed finds that progress on climate adaptation is slowing when it should be accelerating to catch up with these rising climate change impacts.

What’s new in this year’s Adaptation Gap Report 2023? 

• the adaptation finance needs of developing countries are 10-18 times as big as international public finance flows. This is over 50 per cent higher than the previous range estimate.
• The modelled costs of adaptation in developing countries are estimated at US$215 billion per year this decade.
• The adaptation finance needed to implement domestic adaptation priorities is estimated at US$387 billion per year. 
• Despite these needs, public multilateral and bilateral adaptation finance flows to developing countries declined by 15 per cent to US$21 billion in 2021.
• As a result of the growing adaptation finance needs and faltering flows, the current adaptation finance gap is now estimated at US$194-366 billion per year.
• This report identifies seven ways to increase financing, including through domestic expenditure and international and private sector finance.
• Additional avenues include remittances, increasing and tailoring finance to Small and Medium Enterprises and a reform of the global financial architecture.
• The new Loss and Damage fund will also need to move towards more innovative financing mechanisms to reach the necessary scale of investment.

Recommendations of Adaptation Gap Report 2023

• Developed countries should double their climate finance for adaptation from 2019 levels by 2025.
• Increase and improve budget tagging and tracking for integrating adaptation into budget planning
• Mobilize private investments, by methods like resilience bonds, and insurance.
• Leverage remittances which often contribute significantly to Gross Domestic Product.
• Financing Small and Medium Enterprises (SMEs), stimulating them to offer adaptation-relevant products and services.
• Implementation of article 2.1(c) of the Paris Agreement, making finance flows consistent with a pathway towards lowcarbon and climate-resilient development

About United Nations Environment Programme (UNEP)

• Headquarter: Nairobi, Kenya.
• About:It is leading environmental authority in United Nations system
• Genesis:Founded in 1972 following UN Conference on the Human Environment.
• Objectives:To contribute to the building of a culture of peace, the eradication of poverty, sustainable development, and intercultural dialogue through education, the sciences, culture, communication, and information.
• Mandate:To find solutions to triple planetary crisis i.e., climate change, nature and biodiversity loss, and pollution and waste.
• Members:193
• Other:Emission Gap report, The Global Environment Outlook.

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