Climate Finance Shortfall

By Simon Jessop
LONDON (Reuters) – The financial support for developing countries to adapt to climate change falls significantly short of the required $359 billion annually, despite a record annual increase. According to a U.N. report released Thursday, funding from developed nations reached $28 billion in 2022, marking a $6 billion increase, the largest since the Paris Agreement in 2015.

Countries will convene for COP29 in Azerbaijan from Nov. 11-22, focusing on increased climate financing against the backdrop of extreme weather events compounding the effects of climate change, such as flooding in Bangladesh and drought in Brazil.

How much funding wealthier nations agree to provide to assist developing nations is anticipated to be a key discussion point in Baku.

UNEP Executive Director Inger Andersen stated that climate change is already having a devastating impact on communities, particularly among the most vulnerable populations. She mentioned, "Raging storms are flattening homes, wildfires are wiping out forests, and land degradation and drought are degrading landscapes."

Andersen emphasized the urgency for action, saying, "Without action, this is a preview of what our future holds and why there simply is no excuse for the world not to get serious about adaptation, now."

Adaptation finance includes initiatives like building flood defenses, urban tree planting, and ensuring infrastructure resilience to extreme weather events.

The report noted that while 171 countries have established policies or strategies for adaptation, their quality varies greatly, and a few fragile or conflict-affected states lack any plans.

In a separate report last month, the U.N. warned that the world is likely to exceed its goal of limiting warming to 1.5 degrees Celsius above pre-industrial levels by 2050, with projections suggesting a rise of 2.6-3.1C.