UNEP Adaptation Gap Report 2025
01.11.2025
- UNEP Adaptation Gap Report 2025
Context
The United Nations Environment Programme released the Adaptation Gap Report 2025 titled “Running on Empty,” highlighting a critical shortfall in climate adaptation finance in developing countries, warning that the gap has widened drastically.
About the Report
What It Is
An annual flagship publication by UNEP–Copenhagen Climate Centre with contributions from global institutions and experts, the report assesses global progress on climate adaptation planning, implementation, and finance. It measures how far countries, especially developing ones, are from achieving climate resilience goals.
Key Highlights
- Developing countries require between US$310–365 billion annually by 2035 (adjusted possibly up to US$440–520 billion for inflation) to effectively adapt to climate risks, including rapid-onset events like floods and heatwaves, and slow-onset impacts like drought and sea-level rise.
- Current international adaptation finance stands at only about US$26 billion (2023), resulting in a finance gap of approximately US$284–339 billion per year, meaning adaptation funds are 12–14 times lower than needed.
- The Glasgow Climate Pact target of doubling adaptation finance from 2019 levels to about US$40 billion by 2025 is likely to be missed.
- Approximately 58% of adaptation finance is loan-based, including many non-concessional loans, raising concerns about “adaptation debt traps” that exacerbate vulnerabilities in developing economies.
Progress and Challenges
- Out of 197 countries studied, 172 have at least one national adaptation plan (NAP) or framework, although 36 are outdated, limiting responsiveness to evolving climate threats.
- More than 1,600 adaptation actions across biodiversity, agriculture, water, and infrastructure sectors were reported globally, but few measure tangible outcomes effectively.
- The private sector currently contributes roughly US$5 billion, though with policy support, it could potentially invest up to US$50 billion annually.
- Adaptation finance from multilateral climate mechanisms, including the Green Climate Fund (GCF), Global Environment Facility (GEF), and the Adaptation Fund, rose to US$920 million in 2024, an 86% increase compared to the previous five-year average, but uneven and insufficient overall.
India’s Role
- As a major developing country, India’s national adaptation initiatives, including the National Action Plan on Climate Change (NAPCC) and various state action plans, align with UNEP’s call for integrating adaptation into agriculture, water management, and infrastructure.
- Frequent climate events in India such as heatwaves, floods, and glacial melts underline the urgency for adaptive investments.
- India’s international leadership is evident through programs like the International Solar Alliance, LiFE Mission, and its G20 Presidency in 2023, promoting climate adaptation diplomacy.
Recommended Way Forward
- Shift from debt-heavy financing to grant-based or concessional funding to ensure equitable access for vulnerable countries and avoid increasing debt burdens.
- Mobilize private sector investment through blended finance, guarantees, and public-private partnerships.
- Embed climate resilience indicators into financial systems to incentivize risk-sensitive investments.
- Regularly update national adaptation plans with new scientific evidence and climate data.
- Strengthen regional cooperation and South–South partnerships for technology transfer, including initiatives like the International Solar Alliance and CDRI..
Conclusion
The Adaptation Gap Report 2025 starkly warns that the world is "running on empty" when it comes to financing climate adaptation. Bridging this finance and policy gap is not charity but a strategic investment in collective survival. Only through equitable finance, innovation, and global solidarity can climate adaptation outpace accelerating climate risks and protect vulnerable populations worldwide.