UNEP Report Climate Adaptation Finance Needs Hit $365bn as Funding Shrinks

• The United Nations Environment Programme’s (UNEP)  Adaptation Gap Report 2025  has issued a stark warning, revealing a growing chasm between the rising costs of climate adaptation and the declining flow of public finance.

Key Findings of the Report:

• Plummeting Finance:  International public adaptation finance fell to  US$26 billion in 2023 , down from US$28 billion in 2022.

• Soaring Needs:  Developing countries will need  US$310–365 billion annually by 2035  to adapt to climate impacts. Adjusted for inflation, this need could balloon to US$440–520 billion per year.

• Massive Funding Gap:  The current finance flow creates a massive annual shortfall of  US$284–339 billion .

Missed Targets and Future Goals:

The report confirms the world is off track to meet the  Glasgow goal  of doubling 2019 adaptation finance to US$40 billion by 2025. While the new COP29 goal of US$300 billion per year by 2035 for all climate finance is a step up, it will still fall short of adaptation needs alone.

The Way Forward:

The report emphasises that adaptation is a "lifeline" and calls for:

• Faster,  grant-based finance  to avoid worsening debt burdens.

• Stronger climate change mitigation to reduce future adaptation costs.

• Targeted use of private finance, which could contribute up to US$50 billion annually with de-risking, but cannot replace public funding.