Adaptation Gap Report (AGR) 2025: UNEP

November 12, 2025

UNEP released, Adaptation Gap Report (AGR) 2025, comprehensive assessment of global climate adaptation landscape, revealing severe funding shortages, growing climate risks, and the need for urgent global cooperation to achieve resilience and sustainable development.

Theme: Global climate adaptation funding is drastically insufficient as climate risks accelerate; developing countries face rising debt, widening finance gaps, and slow implementation.

Adaptation Gap Report (AGR) 2025 Highlights

Rising Adaptation Finance Requirements

Developing countries will require USD 310–365 billion per year by 2035 for adaptation.
After inflation adjustment (2035), needs rise to USD 440–520 billion annually.
Current adaptation finance (2023) stands at USD 26 billion, which is 12–14 times lower than what is required.

Costs rise due to:

Rapid-onset events (storms, floods).
Slow-onset events (droughts, sea-level rise).
Higher cost of resilient infrastructure.

Declining Adaptation Commitments

Adaptation finance fell from USD 28 billion (2022) to USD 26 billion (2023).
The Glasgow Climate Pact target of doubling adaptation finance by 2025 (to around US$ 40 billion) will be missed.

Debt-Heavy Financing Structure

58% of adaptation finance is loan-based (including non-concessional loans).
This is creating adaptation-related debt traps and worsening inequality for vulnerable nations.

National Adaptation Plans (NAPs)

172 countries have at least one National Adaptation Plan.
36 NAPs are outdated, reducing the effectiveness of national responses.

Implementation Gaps

Over 1,600 adaptation actions have been reported globally.
Most actions are in biodiversity, agriculture, water, and infrastructure, but few demonstrate measurable results due to weak monitoring systems.

Private Sector Under-Investment

Private sector contributes just USD 5 billion annually.
With supportive policies, private investment could reach USD 50 billion, still far short of global needs.

Baku–Belém Roadmap (2024)

Calls for USD 1.3 trillion per year by 2035 in total climate finance.
Emphasizes grants and non-debt finance to avoid future debt stress.

COP30 Relevance (Brazil, 2025)

AGR urges a “global collective effort” led by Brazil’s COP30 Presidency.
Major areas: enhancing transparency, aligning financial flows, improving adaptation targets.

Major Findings of Report

Widening Adaptation Finance Gap

International public adaptation finance- USD 26 billion (2023).
Gap- USD 284–339 billion annually.

Missing Global Targets

Glasgow Climate Pact goal: USD 40 billion by 2025 (double 2019 levels)- will not be met.
NCQG (New Collective Quantified Goal): USD 300 billion by 2035, but not inflation-adjusted.

Climate Mechanism Funding Trends

Funding through Adaptation Fund, GEF, GCF reached USD 920 million in 2024– an 86% increase over the 2019–23 average.
UNEP warns this may be a temporary spike due to fiscal pressures.

Unequal Burden on Developing Countries

58% of adaptation finance is debt-based.
SIDS show strongest integration of adaptation into national plans.

UNEP Recommendations

Fast-Track Baku–Belém Roadmap

Scale up climate finance to USD 1.3 trillion annually by 2035, focusing on developing nations.

Strengthen Private Sector Participation

Raise private adaptation finance from USD 5 billion → USD 50 billion.
Use blended finance, risk guarantees, and PPPs to de-risk investments.

Promote Grants and Concessional Finance

Avoid increasing debt burdens.
Shift focus to:
- Grants
- Concessional loans
- Phasing out fossil fuel subsidies
- Embedding climate risk into financial decision-making

Strengthen Mitigation

Emission reductions reduce future adaptation costs by slowing climate impacts.

Regular Updating of NAPs

Update outdated adaptation plans to reflect latest science and climate risk assessments.

Enhance Regional Cooperation

Promote South–South collaboration, especially via ISA (India’s initiative) and CDRI.

India’s Position & Policy Response

India’s Shift Toward Adaptation

India increasingly prioritises adaptation over mitigation, focusing on:
- Agriculture resilience
- Water management
- Early warning systems
- Disaster risk reduction
Aligns with National Adaptation Fund for Climate Change (NAFCC).

Development First Approach

Economic Survey 2024–25 states:
- India must become a developed nation by 2047 before deep decarbonisation.
- Follows CBDR–RC principle of UNFCCC.

Global Climate Diplomacy

India delays its 2035 NDC submission due to trust deficit in global finance.
U.S. withdrawal from Paris Agreement (2025) and Loss and Damage Fund weakened confidence.
India continues advocating climate justice and equitable responsibility.

Long-Term Goals

Committed to Net Zero by 2070.
Continuing its strategy under Long-Term Low Emission Development Strategy (LT-LEDS).

India and AGR

India’s policies (NAPCC, SAPCCs) align with UNEP recommendations.

Vulnerable due to:

Heatwaves
Floods
Himalayan glacier melt

Plays leadership roles through:

International Solar Alliance (ISA)
LiFE Mission
G20 Presidency (2023)

Successes and Limitations (Global)

Successes

172 countries have adaptation frameworks.
Climate funds (GCF, GEF, AF) disbursed USD 920 million in 2024.
Adaptation increasingly integrated into fiscal planning of SIDS and LDCs.

Limitations

Severe funding shortfall: Only 1/12th of required finance available.
Debt-heavy mechanisms create long-term risks.
Private sector role remains minimal.
Weak Monitoring, Evaluation, and Learning (MEL) systems.
Risk of maladaptation due to poor planning.

Key Definitions

Adaptation: Adjusting to expected climate impacts to reduce damage or exploit new opportunities.

Adaptation Costs: Expenses related to planning and implementing adaptation measures.\\

Climate Finance: Funding (local/national/global) for mitigation and adaptation activities.

Adaptation Gap: Difference between existing adaptation actions and required levels to meet societal and climate goals.

Principles of Climate Finance:

Polluter Pays Principle
Common but Differentiated Responsibilities and Respective Capabilities (CBDR-RC)