SDG 13: Climate Action
Institutions: Ministry of Finance; Ministry of Environment, Forest and Climate Change
The report outlines that global investment in climate adaptation remains far below required levels - estimated needs stand at USD 215-387 billion annually, while available adaptation finance for developing countries was only USD 76 billion in 2022, with just USD 32.4 billion mobilised from developed nations. It identifies entrenched barriers: unclear national funding strategies, weak integration of adaptation in public budgets, limited financial markets, and constrained access to international concessional finance.
To close this gap, the report recommends five interconnected policy actions: (1) ensure national adaptation plans include clear, fair funding strategies; (2) mainstream adaptation within public budgeting and reinforce policy coherence; (3) strengthen sustainable finance and insurance ecosystems; (4) mobilise private investment via public and blended finance instruments; and (5) innovate finance sources - such as carbon markets.
The report affirms that strengthening enabling environments, aligning all finance flows with climate resilience goals, and harnessing blended mechanisms are essential to scale finance effectively. It provides a structured roadmap for policymakers to enhance institutional capacity, develop bankable adaptation projects, and catalyse both public and private capital toward resilient development.
Follow the full report here: