UNEP Adaptation Gap Report 2023: "Current climate action is woefully inadequate"
The UNEP released its Adaptation Gap Report for 2023 (AGR) today, detailing the world's progress in planning, financing and implementing climate adaptation actions. With the title Underfinanced. Underprepared – Inadequate investment and planning on climate adaptation leaves world exposed, the AGR emphasizes from the very beginning that more needs to be done in order to meet the goals as set out by the Paris Agreement.
"Adaptation finance needs are 10–18 times as great as current international public adaptation finance flows – at least 50 per cent higher than previously estimated" (UN Environment Programme, 2023, pIV).
While the needs of the global south have increased, the financing flows have faltered; the current adaptation finance gap is estimated at US$194-366 billion per year. The increasing gap means that the rate of climate risk is accelerating over the rate of implementation of climate action plans. Furthermore, the Intergovernmental Panel on Climate Change (IPCC) reports that there would be residual climate risks even if the Paris Agreement goals are reached, which will then lead to both economic and non-economic loss and damage.
Loss and damage, both economic (ELD) and non-economic (NELD), is an increasingly pressing issue as climate goals become more and more challenging to reach. Defined as the effects of climate change that are not or cannot be avoided through climate mitigation or action, loss and damage as a topic has evolved over time, culminating in a fund and funding arrangements being established at COP27 in Sharm El-Sheikh. The final chapter of the AGR is devoted specifically to loss and damage, its funding, and also the manner in which other funding arrangements may address or impact loss and damage. Key considerations included how to prioritize countries highly vulnerable to climate impacts but with low capacity for funding.
"(T)here are significant gaps and challenges in the policies and actions that national governments and other actors implement to adapt to climate change. The wider these gaps and the longer it takes to overcome the challenges, the more severe the losses and damages will be, particularly in vulnerable countries" (UN Environment Programme, 2023, p62).
When viewing adaptation plans through a gender and social inclusion lens, the AGR reports that there is a need for greater transparency and consistency with respect to defining how the financing has been allocated. Climate finance providers could also increase their funding of gender- and social inclusion-responsive adaptation projects; a marked difference can be made when unique needs and capacities based on gender and social identity are considered. At COP28, which begins later this month in Dubai, December 4th is the day that has been designated to discuss both finance and gender equality.
"Of the finance tagged as principally targeting gender equality (approximately US$1.7 billion), 3 per cent did not provide adequate project description to allow for an analysis. A further 40 per cent had a project description which did not appear to address climate adaptation... Of the remaining finance volumes focusing on adaptation (57 per cent) and marked as gender principal, a review of project description (summaries) found that nearly 31 per cent (one third) are gender-blind, 5 per cent gender-specific, 19 per cent gender-integrative, and only 2 per cent gender-responsive" (UN Environment Programme, 2023, p53).
The AGR concludes by identifying seven ways in which the adaptation gap may be narrowed, including private sector financing, domestic expenditure, and increasing financing to SMEs. The report stresses the need for more innovative funding sources and more transparency on the activities and associated costs of addressing loss and damage. Moreover, most countries are said to have yet to identify and assess their loss and damage risks and financial needs, as ELD pose fewer challenges to assessment than the more qualitative NELD, such as loss of life, cultural heritage, biodiversity or knowledge. It is clear that funding plans and arrangements will require fluidity and adaptability to account for the consequences of NELD and the principles of equity and inclusion.
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UN Environment Programme. (2023, November 2). Adaptation Gap Report 2023. UNEP. Retrieved November 2, 2023, from https://www.unep.org/resources/adaptation-gap-report-2023
