What’s new in this year’s report?
The report examines progress in planning, financing and implementing adaptation measures and finds that adaptation financing needs in developing countries are 10 to 18 times higher than international public funding flows. There is. This is more than 50% higher than the previous forecast range.
The modeled cost of adaptation in developing countries is estimated at US$215 billion per year over the last decade. Adaptation financing needed to implement national adaptation priorities is estimated at USD 387 billion annually.
Despite these needs, official multilateral and bilateral adaptation finance flows to developing countries fell by 15% to USD 21 billion in 2021. As a result of increased adaptation financing needs and stagnant financial flows, the current adaptation financing gap is currently estimated at USD 194. -366 billion per year. At the same time, adaptation planning and implementation appear to have reached a plateau. This failure to adapt has significant consequences for loss and damage, especially for the most vulnerable.
The report identifies seven ways to increase financing, including domestic spending and funding from international and private sectors. Additional measures include remittances, expanding and coordinating lending to small and medium-sized enterprises, and reforming the global financial architecture. New loss and damage funds will also need to move to more innovative funding mechanisms to achieve the required scale of investment.