It is widely accepted that there is a significant shortfall in finance to implement the adaptation priorities contained in NAPs. In 2024, UNEP estimated adaptation finance needs in developing countries at between US$215 billion and US$387 billion per year, compared to public adaptation finance flows from developed to developing countries of US$27.5 billion, a very significant shortfall.

Many African countries have taken important steps toward planning for adaptation by developing and submitting their NAPs, identifying priority projects and programmes, ensuring ministries or domestic organizations become direct access entities to the multilateral climate funds, and other important enabling activities. However, we observe that almost all are still seeing significant funding shortfalls and that Ministries of Finance are often involved at a late stage in the NAP process.

In the current geopolitical climate, it is clear that international public finance is struggling to meet all countries’ adaptation finance needs. But how can countries make up these shortfalls? Can private sector financing meet countries’ needs? Is there scope to increase public-private partnership financing models? Or does domestic public sector finance need to bridge the gap?

In discussing these questions, the objective of the session is to increase knowledge and awareness of linking adaptation plans to investment opportunities, including crowding in investors, mobilizing different funding sources and leveraging public-private partnerships to build a pipeline of adaptation projects and programmes. The session will do this through speakers from Africa sharing their experiences of mobilizing finance to implement adaptation priorities, while also hearing from one or more funders on the challenges and opportunities they have observed. The session will also examine new trends in climate finance. In hearing from funders and examining new opportunities, the session will take an important step towards supporting countries to access more, and more diverse sources of finance. It will also explore how adaptation investment plans facilitate resource mobilization and can accelerate the transition from planning to implementation in support of the call for accelerated implementation of NAPs by 2030.  

A secondary objective is for UNDP to launch its Adaptation Financing Guideline.

Additional Materials

• Finance for National Adaptation Plan Processes: What can we learn from countries’ national adaptation plans?
• Inventory of Innovative Financial Instruments for Climate Change Adaptation
• Climate Change Adaptation Investment Plans: Frequently asked questions
• Infographic | Seven Guiding Principles for Preparing Financing Strategies for Climate Change Adaptation in Developing Countries
• Understanding Green Climate Fund Support for Adaptation Planning: An analysis of GCF readiness proposals on adaptation planning