UNEP’s Adaptation Gap Report 2023 finds that progress on climate adaptation is slowing when it should be accelerating to catch up with these rising climate change impacts. Georgia Savvidou is one of the main authors of the finance chapter and Nella Canales and Nabil Haque are co-authors. They also contribute to the Adaptation Finance Update Report, which is an in-depth study of the finance chapter of the Adaptation Gap Report.
UNEP’s Adaptation Gap Report 2023 has undertaken a comprehensive assessment of the literature and commissioned new studies to provide updated estimates of the cost of adaptation and current adaptation finance flows, and thus the adaptation finance gap for developing countries.
Based on this new assessment of costs and flows, the adaptation finance gap has grown significantly since previous assessments. The estimated costs/needs of adaptation are now approximately 10–18 times as much as international public adaptation finance flows. A widening gap indicates a deepening climate crisis and will mean increased loss and damage.
This indicates that a significant increase in international public adaptation finance is needed, which should be anchored in the new collective quantified goal. However, any such increase is unlikely to bridge the adaptation finance gap on its own.
Bridging the adaptation finance gap requires more ambitious mitigation and effective adaptation. In addition to increased international public adaptation finance, private-sector finance and domestic expenditure, several approaches can help bridge the gap. These include remittances, increased finance for small and medium-sized enterprises (SMEs), reform of the international financial system and the implementation of article 2.1(c) of the Paris Agreement. The latter offers significant potential, including for developing countries, but it also brings the risk that vulnerable developing countries become less attractive to invest in if article 2.1(c) is driven solely by financial materiality.
Other publication / SEI researchers contributed to the Adaptation Finance Gap Update 2023, that provides a more detailed write-up of UNEP’s Adaptation Gap Report 2023.
Press release / Progress on climate adaptation is slowing when it should be accelerating to catch up with rising climate change impacts and risks, according to a UNEP report.
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