Despite clear signs of accelerating climate risks and impacts worldwide, the adaptation finance gap is widening and now stands at between USD 194 billion and USD 366 billion per year, according to a new report by the United Nations.
Released ahead of the annual UN climate talks in Dubai, UAE, the “Adaptation Gap Report 2023: Underfinanced. Underprepared – Inadequate investment and planning on climate adaptation leaves the world exposed” finds that the adaptation finance needs of developing countries are 10-18 times as big as international public finance flows over 50 per cent higher than the previous range estimate.
The adaptation finance gap is the difference between the estimated costs of adapting to climate change in developing countries and the amount of finance available to meet these costs.

“Today’s Adaptation Gap Report shows a growing divide between need and action when it comes to protecting people from climate extremes. Action to protect people and nature is more pressing than ever,” UN Secretary-General Antonio Guterres said in his message on the report.
“Lives and livelihoods are being lost and destroyed, with the vulnerable suffering the most. We are in an adaptation emergency. We must act like it. And take steps to close the adaptation gap, now,” he added.
“In 2023, climate change yet again became more disruptive and deadly: temperature records toppled, while storms, floods, heatwaves, and wildfires caused devastation. These intensifying impacts tell us that the world must urgently cut greenhouse gas emissions and increase adaptation efforts to protect vulnerable populations. Neither is happening,” said Inger Andersen, Executive Director of the United Nations Environment Programme (UNEP).