Rich nations gave $32.4 bn for adaptation in 2022, gap remains
ECONOMY & POLICY

Rich nations gave $32.4 bn for adaptation in 2022, gap remains

In 2022, developed countries provided a total of $32.4 billion to assist developing countries in adapting to climate change, with $28.9 billion coming from public funding, according to a recent report. This amount was approximately 23 per cent higher than in 2021 and 54 per cent higher than in 2019. The report was submitted by a group of developed nations to the UN Framework Convention on Climate Change (UNFCCC).

However, a UN report from November 2023 highlighted that developing countries require between $215 billion and $387 billion annually to protect themselves from climate change impacts.

At the UN climate conference in Glasgow in 2021, developed countries were urged to double their adaptation funding by 2025, using 2019 as the baseline. This call was reiterated at the UN climate summit in Dubai in December 2023, with a request for progress updates in 2024.

The report, published on the UNFCCC website, revealed that in 2022, $11.6 billion of international public finance was provided as grants, $17.2 billion as loans, and $100 million as equity. Compared to 2019, grants saw a 63 per cent increase, and loans rose by 48 per cent.

Of the total $32.4 billion mobilized in 2022, $10.6 billion was given as bilateral aid, while $18.3 billion went through multilateral channels, such as development banks and climate funds. Additionally, $3.5 billion in private adaptation finance was mobilized through public initiatives.

The growth in adaptation finance from 2019 to 2022 was attributed to several factors, including a 57 per cent increase in multilateral finance, mainly from multilateral development banks (MDBs), a 47 per cent rise in bilateral aid, and a 133 per cent growth in private finance mobilized by public interventions.

Regionally, Africa and Asia received the largest share of the funding from 2019 to 2022, with 39 per cent and 37 per cent, respectively. Latin America and the Caribbean received 13 per cent, while Europe and Oceania each received 2 per cent. Another 7 per cent went to multiple countries or regions.

The report emphasized that the increased adaptation finance targeted the countries most vulnerable to climate change, particularly least developed countries (LDCs) and small island developing states (SIDS). In 2022, LDCs received over $11.2 billion, and SIDS received more than $1.6 billion. From 2019 to 2022, LDCs received an average of $8.87 per person, while SIDS received $20.16 per person.

In 2022, developed countries provided a total of $32.4 billion to assist developing countries in adapting to climate change, with $28.9 billion coming from public funding, according to a recent report. This amount was approximately 23 per cent higher than in 2021 and 54 per cent higher than in 2019. The report was submitted by a group of developed nations to the UN Framework Convention on Climate Change (UNFCCC). However, a UN report from November 2023 highlighted that developing countries require between $215 billion and $387 billion annually to protect themselves from climate change impacts. At the UN climate conference in Glasgow in 2021, developed countries were urged to double their adaptation funding by 2025, using 2019 as the baseline. This call was reiterated at the UN climate summit in Dubai in December 2023, with a request for progress updates in 2024. The report, published on the UNFCCC website, revealed that in 2022, $11.6 billion of international public finance was provided as grants, $17.2 billion as loans, and $100 million as equity. Compared to 2019, grants saw a 63 per cent increase, and loans rose by 48 per cent. Of the total $32.4 billion mobilized in 2022, $10.6 billion was given as bilateral aid, while $18.3 billion went through multilateral channels, such as development banks and climate funds. Additionally, $3.5 billion in private adaptation finance was mobilized through public initiatives. The growth in adaptation finance from 2019 to 2022 was attributed to several factors, including a 57 per cent increase in multilateral finance, mainly from multilateral development banks (MDBs), a 47 per cent rise in bilateral aid, and a 133 per cent growth in private finance mobilized by public interventions. Regionally, Africa and Asia received the largest share of the funding from 2019 to 2022, with 39 per cent and 37 per cent, respectively. Latin America and the Caribbean received 13 per cent, while Europe and Oceania each received 2 per cent. Another 7 per cent went to multiple countries or regions. The report emphasized that the increased adaptation finance targeted the countries most vulnerable to climate change, particularly least developed countries (LDCs) and small island developing states (SIDS). In 2022, LDCs received over $11.2 billion, and SIDS received more than $1.6 billion. From 2019 to 2022, LDCs received an average of $8.87 per person, while SIDS received $20.16 per person.

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