Scaling climate adaptation funding for developing countries

Developing countries are bearing the brunt of climate-related disasters, with losses three times greater than high-income countries, according to the United Nations Conference on Trade and Development (UNCTAD). Additionally, adaptation costs for these countries have doubled over the last decade due to inaction. In a recent interview with CNBC Africa, Richard Kozul-Wright, the Director for Globalization and Development Strategies at UNCTAD, shed light on the pressing need to scale climate adaptation funding for developing countries. Kozul-Wright highlighted the stark inadequacy of current funding levels, estimating that the global community would need hundreds of billions of dollars to address the escalating climate crisis. He pointed out that the promise made by advanced economies through the Green Climate Fund of $100 billion by 2020 for both adaptation and mitigation fell short. The target has now been extended to 2023, leaving a significant gap in funding that is crucial for addressing the adaptation challenge. One key issue raised by Kozul-Wright is the lack of urgency and agency when it comes to climate finance. He noted that until recently, the impact of climate change had primarily been felt in developing countries, leading to a sense of 'out of sight, out of mind' in advanced economies. However, with recent climate-related disasters in these high-income countries, there is a growing realization of the need for action on adaptation. When discussing potential solutions, Kozul-Wright emphasized the importance of public finance at both the national and international levels. While private finance can play a role, he stressed that it cannot substitute for the scale of funding required to address the climate crisis effectively. The director highlighted the need for greater political will from advanced economies to prioritize climate financing and view it as a global collective issue. As the UN COP26 climate summit approaches, Kozul-Wright called for innovative thinking on financial matters and proposed a link between climate investment and debt relief for developing countries. He underscored that many developing nations were already struggling with debt distress prior to the pandemic, making it challenging for them to invest in climate adaptation. Therefore, addressing the intersection of climate financing and debt relief is crucial moving forward. In terms of trade and climate adaptation, Kozul-Wright urged caution in rushing to create new trade rules without fully understanding the implications on developing countries. He emphasized the need to preserve policy and fiscal space for these nations to implement necessary climate policies without being hindered by trade restrictions. Looking ahead, the director called for a strong focus on financing as the primary concern for developing countries. He stressed that without adequate resources, expecting these nations to take on more climate commitments would be unrealistic. The key aim, according to Kozul-Wright, is to ensure that international finance is accessible and that developing countries have the capacity to mobilize resources domestically. In conclusion, the interview with Richard Kozul-Wright highlighted the urgent need for increased climate adaptation funding for developing countries and called for a collaborative global effort to address the escalating climate crisis. As the world prepares for the UN COP26, the director's insights serve as a powerful reminder of the critical role financial support plays in building resilience and combating climate change.