COP28 Agrees $366 Billion Per Annum Gap in Climate Adaptation Finance

The COP28 agreement highlights the importance of doubling the collective climate finance for adaptation for developing countries compared to 2019 levels by 2025. Global adaptation finance gap estimates for developing countries stand at $194-366 billion per year. The short paper emphasizes the role of national public financing in propelling adaptation efforts, given the shortcomings of international climate finance instruments through delayed disbursement and geographical imbalances. In an effort to counteract budget limitations, the report examines alternative financing options such as parametric insurance and regulatory reform. Climate-resilient budgeting in public financial systems is identified as a key instrument in capturing government accountability and priorities in adaptation.

 

Source: Hindustan Times, OECD report, March 14, 2025