Rich Nations Contributed USD 32.4 Billion for Climate Adaptation in 2022 Amid Ongoing Funding Gaps

In 2022, developed nations allocated USD 32.4 billion to assist developing countries in adapting to climate change, with USD 28.9 billion coming from public sources, according to a recent report. This figure represents a 23% increase from 2021 and a 54% rise from 2019. However, a UN report from November last year highlighted that developing countries require between USD 215–387 billion annually to mitigate climate change impacts.

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The UN climate conference in Glasgow in 2021 urged developed countries to double their adaptation funding for developing nations by 2025, using 2019 as a reference point. This call was reiterated at the UN climate summit in Dubai in December 2023, with a request for progress reports by 2024. The report on the UNFCCC website detailed that in 2022, USD 11.6 billion of international public finance was provided as grants, USD 17.2 billion as loans, and USD 100 million as equity.

Funding Distribution and Growth

In comparison to 2019, grants increased by 63%, while loans saw a rise of 48%. Of the total USD 32.4 billion mobilised in 2022, USD 10.6 billion was distributed as bilateral aid, and USD 18.3 billion went through multilateral channels such as development banks and climate funds. Additionally, public initiatives helped mobilise an extra USD 3.5 billion in private adaptation finance.

The growth in adaptation finance from 2019 to 2022 can be attributed to several factors. Multilateral finance increased by over 57%, primarily due to contributions from multilateral development banks (MDBs). Bilateral aid rose by 47%, and private finance mobilised through public interventions grew by an impressive 133%.

Regional Allocation and Vulnerable Nations

Africa and Asia were the primary beneficiaries of this funding from 2019 to 2022, receiving 39% and 37% of the total respectively. Latin America and the Caribbean received about 13%, while Europe and Oceania each got around 2%. An additional 7% was allocated to multiple countries or regions.

The report emphasised that increased adaptation finance targeted the most vulnerable countries to climate change, particularly least developed countries (LDCs) and small island developing states (SIDS). In 2022, LDCs received over USD 11.2 billion, while SIDS obtained more than USD 1.6 billion.

Per Capita Funding and Future Goals

Between 2019 and 2022, LDCs received an average of USD 8.87 per person, whereas SIDS received USD 20.16 per person. At this year's UN climate conference in Baku, Azerbaijan, scheduled for November, nations are expected to agree on new climate finance targets for developed countries starting in 2025.

Developing countries view an ambitious new climate finance goal as essential for increasing ambition levels. They argue that expecting them to do more without adequate support undermines equity principles, especially when many still face poverty and inadequate infrastructure amid worsening climate impacts.

The UNFCCC, established in 1992, mandates high-income industrialised nations known as Annex II countries—such as the United States, Canada, Japan, Australia, New Zealand, and EU member states like Germany and France—to provide financial support and technology to help developing nations combat and adapt to climate change.