As countries are working round-the-clock on the final agreed outcome of COP30, with adaptation finance emerging a key issue of discord between the developed and developing country blocks, an exclusive interview with the global Adaptation Fund officials has revealed that even half of the minimum funds annually required for the purpose, USD 300 million, could not be raised this year yet.
The officials pointed out that adaptation projects, worth more than USD 1 billion, and mostly in the Global South including India, could not be supported due to dearth of funds. The draft cover text on COP30 outcome, circulated on Friday, has urged developed countries to triple adaptation finance by 2030, compared to 2025 levels.
According to available data, India currently has six projects being implemented under the Adaptation Fund in various parts of the country, the last of which was approved in 2016. “In the last nine years, not even a single project was approved for India, apparently due to lack of funds. This is extremely worrying for a country like India that needs so much support for carrying out adaptation,” an Indian official said at Belem.
Projects worth more than USD 1 billion await funding
“Resource mobilisation is critical for the Adaptation Fund at the Belém conference as it seeks a minimum target goal of raising at least USD 300 million in 2025 to be helped into the path towards tripling its outflows by 2030, in accordance with decisions taken at COP29, and towards meeting a growing pipeline of projects under development that has surpassed USD 1 billion”, said a senior official of the Adaptation Fund board to The Plurals on Friday.
“As of now, out of our set floor target amount of USD 300 million, the minimum requirement of the Adaptation Fund, we could barely achieve around 40 per cent at COP30,” said the official. Incidentally though the fund can accept contributions at any time of the year, on ground most of its annual fund pledges come during the COPs.
The fund sources pointed out that after a very dismal first week, which saw hardly 20 per cent of the target being achieved, the second week of the COP30 saw some movement and overall fund equivalent to about USD 135 million USD being pledged to the Adaptation Fund board. But it is still only 40 per cent of the target.
Targets missed third year in a row
“It is the third year in a row that contributors have failed to meet the target set for the Adaptation Fund. This year’s pledges are particularly consequential, given the new climate finance goal of USD 300 billion per year by 2035 established at COP29, where Parties decided to significantly increase the public resources provided through UNFCCC-linked funds like the Adaptation Fund,” said the global climate platform Climate Action Network (CAN).
“This year’s pledges – or the lack thereof – are the first litmus test of developed countries’ commitment to fulfilling this new climate finance goal,” a CAN expert had recently told The Plurals.
CAN argued that the latest failure to provide sufficient finance for the Adaptation Fund highlights the lack of commitment of developed countries to fulfil their obligations under the Paris Agreement, as recently reaffirmed by the International Court of Justice’s Advisory Opinion. “This reality was also reflected in the negotiations in COP30, where developing countries made a strong push for a dedicated agenda space to discuss these obligations by developed countries, in particular under Article 9.1 under the Paris Agreement, to provide public, predictable, timely and adequate climate finance to support climate action in line with the goals of the Paris Agreement,” said a CAN representative.
Germany provides 50 per cent of 2025 fund support
New contribution pledges, key to building up climate resilience for the most vulnerable communities and countries, came from 10 countries being led by Germany with about the equivalent of USD 70 million, followed by Spain with about USD 23 million, Sweden with USD 14 million and Ireland with USD 12 million.
“We are grateful to all of the contributors for stepping up to deliver effective adaptation action (and) they will help the Adaptation Fund reach more vulnerable communities in developing countries with urgently needed adaptation projects on the ground,” said Mikko Ollikainen, head of the Adaptation Fund. The official expressed hope that “others will come forward in the coming days”.
“Adaptation to climate change is rightly a key focus of COP30,” said H.E. Carsten Schneider, German minister for the environment, climate action, nature conservation and nuclear safety, adding that Germany has been a reliable partner of the Adaptation Fund board over years. “I hope that our contribution will build trust further and lend momentum to the search for joint solutions in Belém.”