UNEP Adaptation Gap Report 2025 – “Running on Empty”

Syllabus: Environment (UPSC GS I)
Source: United Nations Environment Programme (UNEP)

Context:

The UN Environment Programme (UNEP) released its Adaptation Gap Report 2025, titled “Running on Empty”, warning that the finance gap for climate adaptation in developing countries has widened sharply.

About the Report:

• What it is:
  An annual flagship publication of UNEP that tracks global progress in climate adaptation planning, implementation, and finance.
• Published by: UNEP–Copenhagen Climate Centre, with contributions from multiple global experts and institutions.
• Aim:
  To assess whether countries—especially developing ones—are adapting quickly enough to climate impacts and to estimate the adaptation finance gap for informed global action under the UNFCCC and COP30 framework.

Key Findings:

1. Widening Finance Gap:
   Developing nations will require US$310–365 billion per year by 2035, while current flows stand at US$26 billion (2023) — nearly 12–14 times lower than needed.
2. Falling Commitments:
   Adaptation finance fell from US$28 billion in 2022, making it unlikely that the Glasgow Climate Pact goal of doubling adaptation finance by 2025 will be achieved.
3. Rising Debt Concerns:
   Around 58% of adaptation finance comes as loans, including non-concessional debt, adding pressure on already vulnerable economies.
4. Planning but Limited Implementation:
   • As per UNEP, 172 countries now have at least one National Adaptation Plan (NAP), but 36 are outdated, limiting real impact.
   • According to Figure 2.2 of the report, progress varies by country group:
     • Developed countries: 88% have valid adaptation plans.
     • Developing countries: 64% have up-to-date plans.
     • Least Developed Countries (LDCs): 73% have current plans, while 21% lack any national instrument.
     • Small Island Developing States (SIDS): 59% have valid plans; 22% have none or outdated ones.
     • Other developing countries: 62% have active plans.
   • Overall, 10–20% of countries still have no national adaptation planning instrument in place.
   • Globally, over 1,600 adaptation projects have been reported—mainly in agriculture, biodiversity, water, and infrastructure—but few measure concrete outcomes.
5. Weak Private Sector Role:
   Private investment remains low at around US$5 billion, though potential investment could reach US$50 billion annually with supportive policies.
6. Global Roadmap – Baku–Belém (2024):
   Calls for US$1.3 trillion per year by 2035 in total climate finance, with a focus on grants and non-debt instruments.
7. COP30 Context:
   The report urges a global collective effort, led by Brazil’s COP30 Presidency, to align finance, transparency, and adaptation goals.

India and the Adaptation Gap Report:

• Significance:
  India’s National Action Plan on Climate Change (NAPCC) and State Action Plans echo UNEP’s call for mainstreaming adaptation into agriculture, water, and infrastructure.
• Vulnerability:
  Repeated heatwaves, floods, and glacial melt highlight the urgency for stronger adaptation measures.
• Leadership:
  Through the International Solar Alliance (ISA), LiFE Mission, and G20 Presidency (2023), India demonstrates leadership in climate adaptation diplomacy.
• Finance Challenges:
  India faces funding constraints and needs greater concessional finance and partnerships.

Positive Developments:

• Policy Recognition:
  Almost all countries now have some national adaptation framework, reflecting global acknowledgment of climate resilience.
• Increased Multilateral Funding:
  UNFCCC-linked funds (GCF, GEF, Adaptation Fund) disbursed US$920 million in 2024, an 86% increase over the previous five-year average.
• Mainstreaming Progress:
  Adaptation is increasingly integrated into development and fiscal planning, especially in SIDS and LDCs.

Major Concerns:

• Severe Finance Shortfall:
  Current adaptation finance covers only one-twelfth of the real need.
• Debt-Driven Mechanisms:
  Loan-based financing risks creating “adaptation debt traps.”
• Low Private Sector Role:
  Due to high risks and absence of de-risking mechanisms.
• Weak Monitoring and Evaluation:
  Many countries lack reliable tracking systems to assess adaptation outcomes.
• Risk of Maladaptation:
  Poorly designed measures may increase vulnerability instead of reducing it.

Way Forward:

1. Increase Grant-Based Finance:
   Focus on grants and concessional funding instead of loans.
2. Encourage Private Investment:
   Use blended finance and public-private partnerships to unlock additional funds.
3. Integrate Climate Risk Indicators:
   Include resilience metrics in financial systems and credit mechanisms.
4. Regularly Update NAPs:
   Ensure adaptation plans reflect latest science and climate realities.
5. Promote Regional Cooperation:
   Strengthen South–South collaboration and technology transfer through initiatives like ISA and CDRI.

Conclusion:

The UNEP Adaptation Gap Report 2025 is a clear warning that climate resilience efforts are “running on empty.”
Bridging the finance and policy gap is essential—not as charity, but as a strategic investment in global survival.
Only through equitable finance, innovation, and collective action can adaptation keep pace with accelerating climate risks.