UNEP’s 2025 Adaptation Gap Report titled ‘Running on Empty’ finds that a huge gap in adaptation finance for developing countries is putting lives, livelihoods and entire economies at risk.
Key Findings of the 2025 Report
- Massive Finance Gap: Developing countries require US$310–365 billion annually by 2035 for adaptation.
- However, only US$26 billion was mobilized in 2023 which is 12–14 times lower than the actual need.
- Declining Financial Commitments: Adaptation finance fell from US$28 billion in 2022 to US$26 billion in 2023, making it clear that the Glasgow Climate Pact target of doubling adaptation finance by 2025 will not be met.
- Rising Debt Burden: Approximately 58% of adaptation finance is loan-based, including non-concessional debt, exacerbating inequality and increasing debt vulnerability among developing nations.
About UNEP Adaptation Gap Report
- The Adaptation Gap Report is the annual flagship publication of the United Nations Environment Programme (UNEP).
- It assesses global progress in climate adaptation planning, implementation, and financing while identifying the widening gap between existing actions and the adaptation needs of developing countries.
- Published By: The report is published by the UNEP–Copenhagen Climate Centre.
- Aim: To evaluate how effectively countries, especially developing ones, are adapting to intensifying climate impacts.
- It also quantifies the adaptation finance gap and provides insights to guide global climate policy, investment, and resilience-building efforts.
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- Uneven Policy and Planning Progress: While 172 countries have at least one National Adaptation Plan (NAP) or framework, 36 plans are outdated, reducing effectiveness against escalating climate risks.
- Implementation but Limited Impact: Globally, 1,600 adaptation actions have been reported mainly in biodiversity, agriculture, water, and infrastructure but few are evaluated for measurable outcomes or long-term resilience.
- Weak Private Sector Participation: Private sector investment remains low at around US$5 billion annually, though potential exists to mobilize up to US$50 billion through supportive policy mechanisms and blended finance models.
- The Baku–Belém Roadmap (2024) envisions US$1.3 trillion per year by 2035 in total climate finance and calls for grant-based funding to prevent “adaptation debt traps.”
- The report underscores Brazil’s COP30 presidency as pivotal in fostering a “global collective effort (mutirão global)” to close adaptation finance and transparency gaps.
India and the Adaptation Gap Report
- India’s National Action Plan on Climate Change (NAPCC) and State Action Plans align with UNEP’s call for mainstreaming adaptation into agriculture, water, and infrastructure planning.
- India faces high vulnerability due to heatwaves, floods, and glacial melts, requiring enhanced adaptation investments.
- Through initiatives like the International Solar Alliance (ISA), Lifestyle for Environment (LiFE) Mission, and leadership during the G20 Presidency (2023), India demonstrates proactive global engagement on climate adaptation.
Achievements and Successes
- Widespread Policy Recognition: 172 countries have national adaptation frameworks, reflecting universal policy acknowledgment of resilience as a development priority.
- Increased Multilateral Funding: Global climate funds including the Green Climate Fund (GCF), Global Environment Facility (GEF), and Adaptation Fund — disbursed US$920 million in 2024, an 86% rise over the previous five-year average.
- Mainstreaming Progress: Adaptation is increasingly integrated into national development and fiscal strategies, particularly across Small Island Developing States (SIDS) and Least Developed Countries (LDCs).
Limitations Identified
- Severe Funding Deficit: Current finance covers barely one-twelfth of the actual need, creating a severe stress on developing nations’ capacities.
- Debt-Dominant Financing: Loan-heavy mechanisms risk pushing vulnerable nations into adaptation debt traps.
- Limited Private Participation: Absence of risk-mitigation instruments hinders private sector engagement.
- Weak Monitoring Systems: Many countries lack Monitoring, Evaluation, and Learning (MEL) frameworks, hampering accountability and performance tracking.
- Risk of Maladaptation: Isolated or poorly designed projects may inadvertently heighten climate vulnerability.
Recommendations Made in the Report
- Shift to Grant-Based Finance: Transition from loan-heavy to grant-based or concessional funding to ensure equity in global climate finance.
- Mobilize Private Sector Investments: Encourage public–private partnerships (PPPs), guarantees, and blended finance to unlock US$50 billion annually for adaptation.
- Integrate Resilience into Finance Systems: Embed climate resilience indicators into banking, insurance, and investment mechanisms to promote risk-informed decisions.
- Update Adaptation Plans Regularly: Ensure periodic revision of National Adaptation Plans (NAPs) to reflect updated scientific and socio-economic realities.
- Foster Regional Cooperation: Strengthen South–South partnerships and technology transfers via platforms such as the Coalition for Disaster Resilient Infrastructure (CDRI) and ISA.
Conclusion
The UNEP Adaptation Gap Report 2025 warns that climate resilience cannot run on empty promises. Bridging the adaptation finance divide is a strategic global necessity; only through equitable funding, innovation, and international solidarity can adaptation efforts outpace the accelerating risks of climate change.
31 Oct 2025
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