Mikko Ollikainen, head of the Adaptation Fund, called attention to the disparity between urgent climate adaptation rhetoric and the lack of funding. Speaking at the summit, he referred to this gap as a "great paradox," highlighting the disconnect between leaders' calls for action and the reality of meager financial pledges.
Funding Falls Short
At a COP29 fundraising event, the Adaptation Fund raised just $61 million—far from its $300 million annual goal. This is despite appeals from UN Secretary-General Antonio Guterres and climate chief Simon Stiell for wealthy nations to close the adaptation funding gap, which could balloon to $187–359 billion annually by 2030.
"These missing dollars are not just numbers," Guterres stated. "They represent lives lost, crops destroyed, and halted progress."
While donor countries may still step forward before the summit ends, Ollikainen remains cautious. "Governments are emphasizing the importance of adaptation, but the lack of financial pledges is puzzling," he remarked.
Potential Causes of Reluctance
The hesitation among donor governments to contribute remains unclear. Some may be awaiting the outcome of negotiations on the New Collective Quantified Goal (NCQG) for climate finance before allocating resources.
Last year, the Adaptation Fund also fell short of its target at COP28 in Dubai, raising $188 million. However, donors then had the added burden of launching the Loss and Damage Fund, which drew significant contributions. At COP29, no such excuse exists, yet pledges remain sluggish.
Spain has led the way this year with a $19 million pledge, while other European countries have contributed modest amounts. Major players like the UK and EU have yet to commit, though Germany has indicated plans to contribute.
A Growing Need, A Shrinking Response
The Adaptation Fund supports critical projects across Africa, Asia, and Latin America, including drought-resilient farming, coastal protection, and disaster-proofing infrastructure. However, as needs grow, its resources are depleting.
Ollikainen warned that without increased contributions, the fund could run out of money. While a new UN carbon market levy promises future revenue, it will not take effect until at least 2026.
The Least Developed Countries (LDC) Fund, another key adaptation financing mechanism, also faces challenges. It canceled a planned pledging event at COP29 due to a lack of donor interest, further highlighting the uphill battle for vulnerable nations seeking support.
Hope for a Turnaround
Rich nations have committed to doubling adaptation finance by 2025, aiming for $40 billion annually. However, this figure pales in comparison to what is needed, according to the UN's Adaptation Gap report.
Samoan minister Cedric Schuster, representing the Alliance of Small Island States, remains optimistic. He believes the new climate finance goal expected to be finalized at COP29 will secure long-term contributions.
"We cannot act without pledges," Schuster emphasized, underlining the urgency of the moment. As climate impacts intensify, the need for meaningful and immediate financial commitments has never been clearer.