A United Nations agency has reported that promises by developed countries to support poorer nations in adapting to climate change have fallen short, with the deficit now 50% larger than previously estimated. This revelation comes amid an increasing frequency of extreme weather events, underscoring the urgency of addressing climate-related challenges.
In 2009, developed nations committed to providing $100 billion annually in climate finance to assist less affluent countries. The mobilization of funds is set to be a significant point of discussion at the upcoming COP28 climate conference in Dubai scheduled for the end of November.
The $100 billion pledge, although not fully secured, was intended not only to help developing countries reduce greenhouse gas emissions but also to help them adapt to rising temperatures and sea levels.
The annual financing gap for adaptation measures alone has now expanded to a range of $194 billion to $366 billion, with the existing financial inflows amounting to just $25 billion during the 2017-2021 period, as reported by the UN Environment Program (UNEP).
UN Secretary-General Antonio Guterres emphasized the pressing need for action, stating, “Action to protect people and nature is more urgent than ever. Yet, as needs increase, progress is stalling.”
According to the UNEP report, the financial support provided from 2017 to 2021 averaged approximately $3 per person, with a 15% drop in annual flows observed in 2021, said Georgia Savvidou, a researcher at Chalmers University of Technology and co-author of the UNEP report.
Savvidou stressed the necessity for ambitious adaptation measures during this decade, warning that without such efforts, losses and damages would escalate.
The UNEP highlighted that investing $1 billion in addressing coastal flooding, for instance, could prevent approximately $14 billion in economic losses.
Guterres called upon developed nations to fulfill the commitments made during the 2021 climate talks to double adaptation funds. He also proposed the imposition of a windfall tax on fossil fuel companies to compensate for climate-related losses.
While financing for mitigation projects such as renewable energy has seen an increase, mobilizing funds for adaptation efforts has proven challenging, noted Pieter Pauw of Eindhoven University of Technology, another co-author of the UNEP report.
Pauw emphasized that donors often find mitigation projects more attractive, as they benefit the global community and are financially rewarding.
The UNEP estimated that developing countries require an annual investment of $215 billion to $387 billion until 2030 to address the impacts of climate change, with this figure expected to rise significantly by 2050.
“In comparison to the money the United States allocates for its military, COVID relief, or bank bailouts, the $100 billion pledge is relatively small,” Pauw stated. He emphasized the need for developed nations to step up their contributions in this critical endeavor.
