Developing nations need $305 billion annually to fight climate change, but receive barely $32 billion: UNEP

International public adaptation finance flows from developed to developing countries reached just $28.2–31.7 billion in 2024, increasing by only $1 billion over the previous year. This sluggish growth comes despite escalating climate risks and mounting economic losses.

UNEP estimates that developing countries will need around $305 billion annually by 2035 for climate adaptation, based on national climate commitments, adaptation plans and modelling estimates. The figure largely excludes private-sector adaptation requirements, which could almost double overall needs.

Even if countries achieve the COP30 aspiration to triple international public adaptation finance by 2035, funding would reach only $85–120 billion annually.

After adjusting for inflation, this would cover merely 20–29% of developing countries' estimated adaptation requirements, leaving a substantial financing shortfall.

“The world is not ready to adapt to current climatic conditions, never mind what overshoot of 1.5°C will bring,” said Inger Andersen, Executive Director of UNEP.

“At climate COP31 in Türkiye and beyond, nations must focus on intensifying efforts to achieve the COP30 Global Mutirão aspiration of tripling adaptation finance by 2035 – while understanding that they will need to go even higher to save lives, avoid losses and damages and protect economies,” she added.

What it means for India

For India, the findings highlight the importance of strengthening climate-resilient infrastructure, agriculture, water management and disaster preparedness.

Increasingly frequent extreme weather events, including heatwaves, floods and erratic rainfall, pose risks to agricultural productivity, urban infrastructure and economic activity.

Insufficient international funding could increase pressure on domestic public expenditure, potentially requiring governments to allocate additional resources towards adaptation while balancing other development priorities.

Private finance cannot bridge gap

The report notes that financial cooperation between developing countries is expanding. South-South adaptation finance increased from $3.8 billion in 2019 to $9.6 billion in 2024.

However, private investment may reduce the funding gap for public-oriented adaptation measures by only 15–20%.

Meanwhile, demand for climate-related loss-and-damage assistance is rising. The first funding round of the Fund for responding to Loss and Damage attracted requests worth $2.8 billion against an initial allocation of just $342 million.

UNEP warned that stronger institutions, predictable financing and simplified access procedures are essential to protect vulnerable economies from escalating climate-related losses.