The United Nations Environment Programme released its 2026 Adaptation Gap Report finding that countries are unprepared for current climate conditions, let alone the impacts of overshooting 1.5°C of warming.
International public adaptation finance flowing from developed to developing countries reached US$28.2–31.7 billion in 2024, according to the report. The report estimates developing countries need US$305 billion annually by 2035 to adapt to climate impacts. Even if nations achieve the COP30 aspiration to triple international public adaptation finance by 2035, tripled flows would only cover 20%–29% of estimated needs.
"The world is not ready to adapt to current climatic conditions, never mind what overshoot of 1.5°C will bring," said Inger Andersen, executive director of UNEP.
The report provides a central estimate of adaptation needs based on an assessment of nationally determined contributions, national adaptation plans, and model-based estimates. This figure largely excludes private sector adaptation needs, which could almost double the total.
Some progress exists. Financial flows between developing countries increased from US$3.8 billion in 2019 to US$9.6 billion in 2024 through multilateral development banks and direct cooperation. Flows to least developed countries and small island developing states rose in real terms between 2019 and 2024, though they declined from a 2022 peak.
Finance alone cannot close the gap. The report finds institutional barriers constrain adaptation implementation, including weak coordination across government sectors and limited capacity to access support for losses and damages. The first round of the Fund for responding to Loss and Damage received requests worth US$2.8 billion against an initial funding envelope of US$342 million.