Cost Of
Adapting To Climate Change Could Hit $500 Billion Per Year By 2050
UNEP's: Failure to cut emissions will dramatically increase the
annual costs of adaptation, which could be up to five times higher by 2050 than
previously thought.

PC:UNEP
The United Nations Environment Programme has reported that the
cost of adapting to climate change in developing countries could rise to
between $280 and $500 billion per year by 2050, a figure that is four to five
times greater than previous estimates, according to a new United Nations
Environment (UNEP) report.
The system’s Adaptation Finance Gap Report which was released
as nations sign the landmark Paris Agreement on climate change, assesses the
difference between the financial costs of adapting to climate change in
developing countries and the amount of money actually available to meet these
costs – a difference known as the “adaptation finance gap”.
The report, the second in UNEP’s series of Adaptation Gap reports, finds that total
bilateral and multilateral funding for climate change adaptation in developing
countries has risen substantially in the five years leading up to 2014,
reaching $22.5 billion. But the report warns that, despite this increase, there
will be a significant funding gap by 2050 unless new and additional finance for
adaptation is made available.
“It is vital that governments understand the costs involved in
adapting to climate change,” Ibrahim Thiaw, the Deputy Executive Director of
the United Nations Environment Programme stated.
“This report serves as a powerful reminder that climate change
will continue to have serious economic costs. The adaptation finance gap is
large, and likely to grow substantially over the coming decades, unless
significant progress is made to secure new, additional and innovative financing
for adaptation.”
Previous estimates place the cost of adapting to climate change
at between $70 to $100 billion annually for the period 2010-2050 - a figure
based on a World Bank study from 2010. The Adaptation
Finance Gap Report, which is
written by authors from 15 institutions and reviewed by 31 experts, builds upon these earlier estimates by
reviewing national and sector studies.
As a result, the report finds that the World Bank’s earlier
figures are likely to be a significant underestimate. The true cost of adapting
to climate change in developing countries could range between $140 and $300
billion per year in 2030, and between $280 and $500 billion per year in 2050,
it says.
Adaptation costs are likely to increase sharply over time even
if the world succeeds in limiting a global rise in temperatures to below two
degrees Celsius by 2100, the report warns. For higher scenarios of global
warming, estimates of the adaptation costs in developing countries are higher
even in early years.
The United Nations Framework Convention on Climate Change
(UNFCCC) has called on developed countries to provide $100 billion annually by
2020 to help developing countries mitigate climate change, and adapt to its
impacts, such as drought, rising sea levels and floods.
However, the UNEP report notes that “There is no agreement as to
the type of funding that shall be mobilised to meet this goal. This hampers
efforts to monitor progress toward meeting the goal.” It further highlights the
need for the proper measurement, tracking, and reporting system of adaptation
investments, to help ensure that finance is used efficiently and targeted where
it is most needed.
While dedicated climate funds are breaking down the barriers to
investing in adaptation projects in developing countries, contributions to
these funds are low when compared to the contributions made to funds that
mitigate climate change.
The Green Climate Fund, which was set up by the UNFCCC, with its
stated goal of splitting funding equally between mitigation and adaptation
efforts, is expected to play a significant role in efforts to fund adaptation.
“The adaptation finance gap is large, and likely to grow
substantially over the coming decades, unless significant progress is made to
secure new and additional finance for adaptation,” the report concludes.
“To meet finance needs and avoid an adaptation gap the total
finance for adaptation in 2030 would have to be approximately six to 13 times
greater than international public finance today”.
Adaptation costs are already two to three times higher than
current international public funding for adaptation, states the report, which
was launched today at Adaptation Futures – the biennial conference of the
Global Programme of Research on Climate Change Vulnerability, Impacts and
Adaptation.
Closing this gap will be vital if the world is to address future
adaptation needs, especially those of developing countries.
The Paris Agreement on climate change, which 195 countries
negotiated in December, includes several key provisions designed to advance
adaptation. Three are particularly momentous: the adoption of a global goal on
adaptation, the commitment to increase developed country funding to developing
countries and the requirement that all parties draw up and regularly update
adaptation plans and strategies.
In an unprecedented move, the Paris Agreement also calls for a
balance between adaptation and mitigation finance and support in a bid to meet
longstanding demand for adaptation finance from developing countries.
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