Editor’s Note The climate crisis has evolved from a looming threat to an undeniable reality that demands immediate attention. The compounding and cascading effects of climate-induced extreme weather events are increasingly being felt worldwide, with their growing frequency and intensity resulting in devastating loss of lives and livelihoods. Developing countries already burdened by economic disparities find themselves especially exposed to the escalating risks posed by climate change. Over 80 percent of the weather-related hazards reported in Asia in 2023 were floods and storms, affecting more than nine million people. [1] In Africa, climate-related disasters annually diminish the GDP by 2–5 percent. [2] As we increase our efforts to curb emissions, it is crucial to simultaneously invest in building climate resilience and adapting to the changes underway. Equally important is ensuring that financial resources are deployed effectively, reaching the most vulnerable communities to maximise their impact on the ground. Adaptation finance has long been the neglected sibling of development and transition finance, facing challenges on both the demand and supply sides. In developing countries, the projected cost of adaptation is estimated at US$215 billion annually for this decade, while the finance needed to meet domestic adaptation needs stands at US$387 billion per year. [3] Despite these pressing needs, public, multilateral, and bilateral adaptation finance to developing countries dropped by 15 percent in 2021, reaching just US$21 billion. [4] This shortfall, coupled with rising adaptation demands, has widened the current adaptation finance gap to an estimated US$194–366 billion per year. [5]
Authors
Related Organizations
- Attribution
- Gopalika Arora, Ed., Funding Our Future: Unlocking Resources for Adaptation Financing , November 2024, Observer Research Foundation. ISBN Paperback: 978-81-19656-38-7 ISBN Digital: 978-81-19656-10-3
- Pages
- 132
- Published in
- India
Table of Contents
- Foreword 4
- Editor’s Note 8
- Gopalika Arora 8
- Mobilising Adaptation Finance: The Case for an International Adaptation Taxonomy 13
- Mikhail Korostikov 13
- Finance for a Resilient Future: Transforming Public Finance Management Systems 23
- Suranjali Tandon 23
- Unlocking Private Finance for Adaptation: Challenges and Solutions 33
- Paul Horrocks and Jens Sedemund 33
- Instruments for Catalysing Private Finance for Adaptation 42
- Somit Dasgupta, Amrita Goldar, Sajal Jain, and Diya Dasgupta 42
- Mobilising Private Finance for Ecosystem-Based Adaptation Through Nature-Based Solutions 52
- Gopalika Arora 52
- MDBs in Financing Adaptation: New Approaches to Assess the Effectiveness of Adaptation Interventions 65
- Adele Tanguy, Alexandre Magnan, and Lola Vallejo 65
- Tools for Tomorrow: Financing Climate Adaptation and Resilience 78
- Tom Kerr and Daphne Basangwa 78
- Multilateral Climate Funds as Catalyst for Adaptation Finance 87
- Ornela Çuçi 87
- Financing Adaptation in Low-Income Countries: The African Perspective 99
- Vera Songwe 99
- Loss and Damage Finance: Progress, Realities, and the Waiting Game 109
- Nivedita Joshi and Harjeet Singh 109
- Conclusion: Demystifying Adaptation Financing 119
- Nilanjan Ghosh 119
