Developing nations face massive climate adaptation funding gap

Developing nations are facing a massive shortfall in climate adaptation funding. In the Pacific, leaders are calling for faster, longer-term finance and a shift from “financing the project” to “financing the plan.” Fiji has identified 43 communities that may require relocation due to climate impacts, a process costing millions of dollars per community. Officials are advocating for more grants and highly concessional finance to address needs that are estimated to be roughly 12 times the current level of international public adaptation finance.

In Africa, researchers are highlighting the role of remittances as a tool for climate resilience. While not official climate finance, the hundreds of billions of dollars sent by migrants to low- and middle-income countries provide critical private resources for households facing droughts, floods, and food insecurity. The United Nations Environment Programme estimates that developing countries will require between US$310 billion and US$365 billion annually for adaptation by 2035, far exceeding the US$26 billion in international public adaptation finance provided in 2023.