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The United Nations Environment Programme (UNEP) has released its flagship Adaptation Gap Report (AGR) 2025, titled “Running on Empty”.

The report warns that the global climate adaptation finance gap for developing countries has widened sharply, threatening progress toward climate resilience and the Sustainable Development Goals (SDGs).

About the Adaptation Gap Report (AGR)

• Publisher: UNEP–Copenhagen Climate Centre, with global institutional contributions.
• Purpose: Tracks progress in climate adaptation planning, implementation, and finance, assessing global preparedness against climate impacts.
• Relevance: Supports policy negotiations under the UNFCCC and upcoming COP30 (Belém, Brazil).

Key Findings

1. Escalating Finance Needs

• Developing nations will require USD 310–365 billion annually by 2035, potentially rising to USD 440–520 billion when adjusted for inflation.
• The growing need reflects increasing risks from both rapid- and slow-onset climate events—heatwaves, floods, sea-level rise, and glacial melt.

2. Widening Adaptation Finance Gap

• Current adaptation finance (2023): Only USD 26 billion, covering just one-twelfth of total requirements.
• Finance gap: USD 284–339 billion annually.
• Falling trends: Funding fell from USD 28 billion (2022), meaning the Glasgow Climate Pact target of doubling adaptation finance by 2025 will likely be missed.

3. Debt-Heavy and Unequal Finance

• About 58% of adaptation finance is in the form of loans, many non-concessional—deepening debt vulnerabilities among developing nations.
• This creates a growing risk of “adaptation debt traps”, undermining the principle of climate justice.

4. Progress and Planning Gaps

• 172 countries have at least one National Adaptation Plan (NAP); however, 36 of them are outdated.
• 1,600+ adaptation actions have been reported globally, primarily in agriculture, water, biodiversity, and infrastructure, but few measure tangible resilience outcomes.
• Small Island Developing States (SIDS) show the highest integration of adaptation into national policies.

5. Limited Private Sector Role

• The private sector contributes only USD 5 billion annually, despite potential investment capacity up to USD 50 billion with supportive de-risking mechanisms.
• Low engagement is attributed to high risk perceptions and limited blended-finance instruments.

6. Multilateral Fund Support

• Disbursements through the Green Climate Fund (GCF), Global Environment Facility (GEF), and Adaptation Fund reached USD 920 million in 2024—an 86% rise over the previous five-year average, though UNEP warns this may be temporary.

Global Frameworks and Roadmaps

Baku–Belém Roadmap (COP29–COP30)

• Envisions USD 1.3 trillion per year by 2035 in total climate finance.
• Stresses the need for grant-based and concessional instruments rather than debt-heavy finance.
• Aims to align finance, transparency, and adaptation under a “global collective effort” (mutirão global) led by Brazil’s COP30 presidency.

New Collective Quantified Goal (NCQG)

• Proposed USD 300 billion by 2035, but UNEP cautions that it is insufficient and not inflation-adjusted, hence failing to meet real adaptation needs.

India and the Adaptation Gap Report 2025

1. National and Regional Context

• India’s climate strategy now prioritises adaptation-centric policies over mitigation, focusing on resilient agriculture, water systems, and disaster management.
• Frequent heatwaves, floods, and glacial retreats heighten India’s vulnerability, underscoring the need for adaptive investments.

2. Policy and Institutional Response

• India’s National Action Plan on Climate Change (NAPCC) and State Action Plans align with UNEP’s adaptation priorities.
• Initiatives like the International Solar Alliance (ISA), Coalition for Disaster Resilient Infrastructure (CDRI), and LiFE Mission showcase India’s global leadership in climate diplomacy.

3. Financial and Structural Constraints

• India continues to face adaptation investment gaps, relying heavily on concessional and multilateral finance.
• Domestic efforts like the National Adaptation Fund for Climate Change (NAFCC) are under fiscal strain due to limited international flow.

4. Developmental Balancing

• India maintains that development precedes decarbonisation, in line with the principle of Common But Differentiated Responsibilities and Respective Capabilities (CBDR–RC).
• The Economic Survey 2024–25 reiterates that achieving developed-nation status by 2047 is essential before aggressive deep decarbonisation.
• India remains committed to Net Zero by 2070, consistent with its Long-Term Low Emissions Development Strategy (LT-LEDS).