ACTION TO CLOSE THE ADAPTATION FINANCE GAP The devastating impacts of climate change are increasingly visible, and NASA has indicated 2016 is likely to be another record breaking year on the temperature scales. Climate change is worsening poverty and hunger around the world. An additional 40 million people in Southern Africa alone are facing food insecurity and humanitarian needs because of sustained drought caused by climate change and El Nino. Despite the brutal reality confronting millions of the world’s most vulnerable people, there is a persistent and growing adaptation funding gap that must be addressed with the same urgency that inspired the early ratification of the Paris Agreement.
KEEPING ADAPTATION ON THE AGENDA Adaptation is a central part of the Paris Agreement – in which all countries committed to a long-term adaptation goal to build climate resilience. To turn this commitment into reality for the billions of people on the front lines of the climate crisis, adaptation must remain front and center as parties flesh out implementation of the Paris Agreement at COP 22 and beyond. Limiting dangerous global warming is urgent. But for global climate efforts to be fair, just, and durable, they must also protect the rights of those that are most vulnerable to its impacts and least able to cope.
ADAPTATION FINANCE FACTS
Donor reports indicate approximately $10 billion/yr was for adaptation on average in 2013-14.
Oxfam estimates the net assistance to developing countries targeting adaptation may have been just $4-8 billion/yr on average in 2013-14.
The Roadmap says adaptation finance will double by 2020. Oxfam estimates that doubling to be around 20% of the $100 billion by 2020.
MIND THE ADAPTATION FINANCE GAP Climate change is an immediate, grave, and growing threat to development, making the battle to overcome poverty even harder and more expensive. The United Nations estimates that by 2030, developing countries could be facing costs of $140 to $300 billion per year to adapt to climate change. By 2050 costs could top $500 billion per year.
During 2013-14 only 16% of international climate finance was allocated for adaptation. The Roadmap to $100 billion produced by developed countries shows a projected doubling of adaptation finance by 2020, which Oxfam estimates will bring adaptation finance to around 20% of the $100 billion – nowhere near enough to ensure the needs of the most vulnerable are met. And a long way from the principle of ‘balance’ in allocation of climate finance between adaptation and mitigation agreed by all governments in Paris.
CLOSING THE ADAPTATION FINANCE GAP Everyone must act to deliver a step change in support for adaptation: All parties should agree a global adaptation finance goal. In Paris parties committed to significantly increase adaptation finance from current levels and to balance finance between adaptation and mitigation. Yet this and other qualitative commitments haven’t delivered the increases needed. A commitment to $35 billion in public finance for adaptation by 2020 is the minimum signal needed to start to address the adaptation finance gap. All developed countries that have not already done so should set out what their level of adaptation finance will be in 2020. All developed countries should commit to ensuring that 50% of their overall public finance is allocated for adaptation. Contributing countries should work to improve the balance of the climate finance they provide. Even modest increases in the proportion countries’ climate finance for adaptation could have a significant impact globally. All contributing countries should work to increase the overall share and amount of grant-based assistance provided by 2020. Grant instruments should be prioritized for adaptation, and for the poorest and most vulnerable countries. Progress innovative sources of climate finance in order to limit the displacement of ODA for other development priorities. New sources of funding will be needed to address the large and growing gap between existing levels of adaptation finance and growing needs.