As climate change intensifies, exposing communities and economies to increasingly severe floods, droughts, and extreme heat, global efforts to adapt are struggling to keep pace, according to a new United Nations report.
The United Nations Environment Programme, or UNEP, Adaptation Gap Report for 2026 found that adaptation finance remains far below the estimated level needed, implementation is being constrained by institutional and governance barriers, and losses and damage are mounting as climate impacts intensify.
"Action on all these fronts is essential to build resilience in a rapidly changing climate," the report said.
The document emphasizes that expanded, effective, and adequately financed adaptation is critical to reducing climate risks, strengthening resilience, and supporting inclusive development.
However, international public adaptation finance from developed to developing countries remains far below the estimated $305 billion needed annually by 2035.
Even if the COP30 aspiration to triple international public adaptation finance is met and the money flows to developing countries by 2035, the funding would only cover 20 percent to 29 percent of their estimated needs, the report said.
"The world is not ready to adapt to current climatic conditions, never mind what overshoot of 1.5 C will bring," said Inger Andersen, executive director of UNEP.
Andersen urged countries to use the upcoming COP31 climate conference in Turkiye and subsequent negotiations to intensify efforts to triple adaptation finance by 2035.
She cautioned, however, that even greater financial commitments would be needed to save lives, prevent losses and damage, and protect economies from escalating climate impacts.
Fatima Denton, a member of the steering committee for the latest Adaptation Gap Report, said effective adaptation depends not only on national plans and government priorities but also on the strength of institutions and governance systems responsible for implementing them.
She said many institutions, particularly in developing countries, lack the capacity and preparedness to manage climate risks, despite these countries facing some of the greatest climate threats.
"We are better informed about climate risk, but we are not sufficiently prepared in terms of how to manage them," she said.
Drawing on experiences from Bolivia, Canada, Grenada, Kenya, and Kiribati, the report highlights how institutional innovation, inclusive policymaking, and stronger community engagement can improve adaptation outcomes, including in resource-constrained settings.
