Adaptation Gap Report 2024

Syllabus: GS3/ Environment

Context

• The “Adaptation Gap Report 2024: Come Hell and High Water” was released by the United Nations Environment Programme.

Adaptation Gap Report (AGR) 

• It is an annual publication by the United Nations Environment Programme (UNEP).
• Its purpose is to assess global progress on climate change adaptation, i.e. the efforts made by countries to adjust and prepare for current and future climate impacts. 
• Adaptation gap refers to the difference between the actual adaptation efforts being implemented and the adaptation needs required to mitigate the risks posed by climate change.

Key Highlights

• Adaptation Finance Gap: Although international public adaptation finance for developing countries increased to $28 billion in 2022, the overall gap remains substantial.
  • Even doubling adaptation finance from 2019 levels, as targeted by 2025 under the Glasgow Climate Pact, would only reduce the finance gap by about 5%.
• Adaptation Planning and Implementation: 87% of countries now have at least one national adaptation planning instrument. Of these, 51 per cent have a second, and 20 per cent have a third.
  • Aligning National Adaptation Plans (NAPs) and Nationally Determined Contributions (NDCs) is crucial for strategic implementation.
• UAE Framework for Global Climate Resilience (FGCR): Progress towards UAE FGCR targets, agreed at COP 28, is mixed, with thematic areas like poverty reduction and cultural heritage protection needing more focus.
  • Many NAPs reference UAE FGCR targets but lack comprehensive data and planning for all sectors.
• Capacity-Building and Technology Transfer: Enhancing capacity and technology transfer in developing countries is vital but currently lacks effectiveness due to uncoordinated, short-term efforts.

Challenges in bridging the Finance Gap

• Complexity of Financing Instruments: The adaptation finance landscape includes resilience bonds, debt-for-adaptation swaps, and performance-based climate grants.
  • Implementing these instruments effectively requires strong institutional capacity, which is lacking in developing nations.
• Policy Barriers: An absence of robust enabling policies, such as climate risk disclosure frameworks and adaptation taxonomies, hinders private sector engagement.
• High Dependence on Public Finance: The report highlights the limited involvement of the private sector, which could contribute more, especially in sectors where there are revenue-generating opportunities.

Policy Recommendations

• Adaptation efforts must prioritize fairness and equity to avoid exacerbating existing inequalities, especially concerning gender and disadvantaged communities.
• The principle of “common but differentiated responsibilities” should be reinforced in climate finance discussions.
• Implement holistic approaches that cover adaptation finance, capacity-building, and technology transfer as part of an integrated development strategy.

Source: UNEP