Adaptation Finance Gap Update 2023

The Adaptation Finance Gap Update 2023 provides a detailed analysis of adaptation finance flows to developing countries between 2017 and 2021, highlighting a persistent funding gap, low disbursement ratios, and a reliance on grants for the most vulnerable nations.

• Between 2017 and 2021, international public adaptation finance for developing countries stayed at or below US$25 billion annually, averaging roughly US$3 per person. In 2021, funding dropped by 15 per cent compared to 2020, falling to US$21 billion.
• The disbursement ratio for adaptation finance was 66 per cent from 2017 to 2021, which is significantly lower than the 98 per cent ratio for general development finance. This disparity is attributed to barriers such as low grant-to-loan ratios, limited technical capacity for decision makers, failure to account for local issues during project design, and a mismatch between approval timelines and the mandates of local and national governments.
• Grant-based funding is prioritized for the most vulnerable countries to avoid increasing debt burdens. From 2017 to 2021, grants accounted for 67 per cent of total commitments for Small island developing States (SIDS) and 52 per cent for least developed countries (LDCs), compared to 26 per cent for non-LDCs.
• Less than 17 per cent of adaptation finance commitments between 2017 and 2021 focused specifically on local communities, despite a growing recognition of the importance of local agency in adaptation.
• While domestic expenditure and private finance are critical, they are unlikely to close the adaptation finance gap independently, particularly in low-income countries, LDCs, and SIDS. Quantitative estimates for these specific funding sources remain unavailable.

APA

Stockholm Environment Institute (2023). Adaptation Finance Gap Update 2023. https://www.sei.org/publications/adaptation-finance-gap-update-2023/

Chicago

Stockholm Environment Institute. Adaptation Finance Gap Update 2023. 2023. https://www.sei.org/publications/adaptation-finance-gap-update-2023/.

Wikipedia

{{cite report |author=Stockholm Environment Institute |title=Adaptation Finance Gap Update 2023 |date=13 November 2023 |url=https://www.sei.org/publications/adaptation-finance-gap-update-2023/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{stockholmenvironmentinstitute2023adaptation, author = {{Stockholm Environment Institute}}, title = {{Adaptation Finance Gap Update 2023}}, institution = {Stockholm Environment Institute}, year = {2023}, month = nov, url = {https://www.sei.org/publications/adaptation-finance-gap-update-2023/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }