# Economic and climate crises in developing nations > Developing situation record from CLSTR: https://clstr.news/situations/economic-and-climate-crises-in-developing-nations > Updated: 2026-10-06T00:47:38.000Z. Sources: 6. Developments: 2. Developing nations are confronting a convergence of economic and environmental challenges. UNDP Administrator Alexander De Croo warned that rising borrowing costs, inflation, and energy price surges linked to the Iran war could trigger a “domino effect” of financial distress. These economic pressures are compounded by the El Niño weather pattern, which is projected to increase food insecurity for millions by 2027. As these crises evolve, a significant gap in climate adaptation funding has emerged. In the Pacific, leaders are advocating for a shift toward “financing the plan” rather than individual projects to address the high costs of community relocation. In Africa, remittances are being utilized as a critical private resource for resilience against droughts and floods. Current estimates suggest that developing countries will require between US$310 billion and US$365 billion annually for adaptation by 2035, a figure that far exceeds existing international public adaptation finance. ## Timeline ### 2026-10-06: Developing nations face massive climate adaptation funding gap Developing nations face a significant climate adaptation funding gap, with Pacific leaders seeking faster finance and African researchers highlighting the role of remittances in building resilience. 4 sources. https://clstr.news/cluster/developing-nations-face-massive-climate-adaptation-funding-gap ### 2026-10-02: Developing nations face financial and climate crises Developing nations face a “domino effect” of financial distress driven by high fuel costs, rising debt, and climate-induced food insecurity, according to leaders from the UNDP and World Bank. 2 sources. https://clstr.news/cluster/developing-nations-face-financial-and-climate-crises --- Cite as: Economic and climate crises in developing nations. CLSTR, https://clstr.news/situations/economic-and-climate-crises-in-developing-nations