Bridging the gaps in public finance for climate adaptation

The current gap in financing the global adaptation of developing countries is estimated at 194-366 billion dollars per year. This summary highlights the decisive role of local public financing in driving adaptation initiatives. While international climate financing mechanisms exist, their effectiveness is limited due to slow drainage and regional disparities in the distribution of funds. General Finance Management Systems can work as a stimulant to fill in special climate financing. In the context of financial restrictions and high debt levels after the Covid-19 pandemic, the summary explores alternative financing solutions, including parameter insurance and regulatory reforms. The integration of the budget for the climate in general financing systems is highlighted as a decisive tool to reflect government accountability and priorities. The summary also studies innovative methods to expand adaptation financing beyond traditional general financing, especially in developing countries, where the climate weaknesses are higher.

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Article 7.1 of the Paris Agreement highlights the global goal of adaptation. To support the work towards this goal, the signatories on the agreement created the Jlaso-Sherm El-SHEIKH program in Cop26. The work program has been implemented for two years by a technical body that supports the parties to the Paris-CMA Agreement for the sub-body of scientific and technological advice and the sub-commission for implementation. While the work program highlighted that the adaptation procedure has a time -related goal, the adoption of the global goal in COP28 has decreased due to the lack of goals and financial support.

Previous attempts to determine the targets of adaptation have achieved limited success, as adaptation procedures were local and specific for the context. Although these challenges may continue, there are continuous efforts to create indicators to measure success and collect data to support adaptation planning. Funding is still the main challenge. COP28 decision is repeated that by 2025, the parties need to double the financing of the collective climate to adapt to the developing countries of 2019 levels.

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This paper was composed by Surangale Tandon, Orf, New Delhi.