In a stark warning issued by the United Nations Environment Programme (UNEP), the newly released Adaptation Gap Report 2025: Running on Empty reveals a significant financial shortfall in adaptation funding for developing nations. This report comes as Hurricane Melissa, the strongest cyclone recorded in Jamaica”s history, wreaks havoc across the Caribbean, displacing thousands and causing extensive infrastructure damage.
The report estimates that by 2035, developing countries will require between USD 310 billion to USD 365 billion annually to adequately adapt to the impacts of climate change. However, international public funding for adaptation has declined, falling from USD 28 billion in 2022 to just USD 26 billion in 2023. This leaves an adaptation finance gap ranging from USD 284 billion to USD 339 billion per year, which is 12 to 14 times the current funding flows.
UN Secretary-General Antonio Guterres emphasized the urgency of addressing this gap: “Climate impacts are accelerating. Yet adaptation finance is not keeping pace, leaving the world”s most vulnerable exposed to rising seas, deadly storms, and searing heat. Adaptation is not a cost—it is a lifeline.” He urged global leaders to act decisively to close the adaptation gap, which is critical for safeguarding lives and promoting climate justice.
Inger Andersen, UNEP”s Executive Director, highlighted the pressing need for investment in climate resilience. She pointed out that for every USD 1 invested in coastal protection, an estimated USD 14 in damages can be avoided. Furthermore, implementing urban nature-based solutions can lead to significant reductions in ambient temperatures, a crucial factor during extreme heat events.
The report also indicates that the financial requirements for adaptation will only increase, with projected inflation pushing the annual need to between USD 440 billion and USD 520 billion by 2035. The existing New Collective Quantified Goal for climate finance, which aims to mobilize at least USD 300 billion annually from developed countries, is deemed insufficient to bridge this gap.
As Jamaica and other small island developing states continue to face severe climatic threats, the call for a comprehensive approach to adaptation financing becomes increasingly urgent. At a recent press conference, Andersen remarked on the precarious situation of low-income nations, stating, “No one is prepared unless they are on very high ground and have no tendency for fires, landslides, or floods.”
The Brazilian presidency of COP30 has advocated for a global effort to implement ambitious climate actions, which includes addressing the significant financing shortfalls. The adaptation report stresses the need for both public and private sectors to enhance their contributions, with potential private sector flows expected to rise significantly with appropriate policy action and blended finance solutions.
As the world grapples with the escalating consequences of climate change, the findings of the Adaptation Gap Report underscore the urgent need for increased funding and strategic action to ensure that developing countries are not left behind in the fight against this global crisis.
