The cost of climate adaptation

The poorest and least-developed nations are likely to face the most devastating effects from climate change. They also have the least capacity to adapt to the changing conditions, find managing partner for global client capabilities Homayoun Hatami, senior partner Hamid Samandari, and colleagues. Successful adaption would require massive financial transfers from developed countries. One estimate suggests that the annual costs for developing countries could range from $160 billion to $340 billion by 2030, and $315 billion to $565 billion by 2050.

Current estimates show climate adaptation funding needed by developing countries rising by close to 65 percent from 2030 to 2050.

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A series of circles show the United Nations Environment Programme’s estimated annual climate adaptation funding needs in developing countries in billions of dollars for 2030 and 2050. The 2030 estimated funding needs are $160 billion for lower bound and $340 billion for upper bound. The 2050 estimated funding needs are $315 billion for lower bound and $565 billion for upper bound.

Source: Adaptation Gap Report 2022, UNEP, Nov 2022; Nigel Arnell et al., “Report on reports - Adaptation to climate change: Assessing the costs,” Environment: Science and Policy for Sustainable Development, 2009, Volume 51, Number 6.

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To read the article, see “Ten key requirements for a systematic approach to climate adaptation,” November 8, 2023.