Adaptation Finance Gap Widens, Lancet's Climate-Health Risks Warning, FireTech Start-up Raises $48mn, and More

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Global efforts to finance adaptation are moving in the wrong direction, with international public flows declining from US$28bn in 2022 to US$26bn in 2023, the latest UN Adaptation Gap Report says.

Developing countries now require an estimated US$310-365bn in finance annually by 2035 to guard against climate shocks and enhance their disaster response capabilities, the report adds, around 12 to 14 times current public flows. In 2023, the finance estimate was US$215-387bn (in 2021 prices).

Based on current trends, rich nations are likely to miss the Glasgow Climate Pact goal of delivering US$40bn in adaptation finance annually by 2025, the report explains. It further suggests the broader US$300bn New Collective Quantified Goal (NCQG) for climate finance will fall short of adaptation needs.

The finance landscape is deteriorating in quality as well as quantity. Debt-based instruments, including non-concessional loans, make up a growing share of adaptation finance, even in vulnerable countries — raising red flags about long-term sustainability. Overall, loans and other debt instruments make up 58% of adaptation flows on average, supplied primarily by multilateral development banks (MDBs). Experts are concerned this could lead to an “adaptation investment trap”, whereby poor countries' ability to strengthen climate resilience is undermined by the need to allocate millions to debt servicing.

In addition, private sector participation in adaptation finance is still minimal, at around US$5bn per year. However, UNEP analysis suggests there is potential for the private sector to meet 15-20% of public adaptation priorities by 2035 — around US$55bn a year. These include investments in projects that throw off reliable cashflows, most often found in the agriculture, water solutions, and infrastructure sectors in middle-income countries.

Inger Andersen, Executive Director at the United Nations Environment Programme, stressed the importance of scaling up adaptation finance in the report’s foreword: “[W]e need a global push to increase adaptation finance from both public and private sources. Budgets may be tight. There may be many competing priorities. But the smart choice is to invest in adaptation now.”

The Green Climate Fund signed off on a record US$1.33bn for 22 new projects across poor nations last week, taking its total commitments this year to a new high of US$3.26bn. Newly approved initiatives include efforts to climate-proof agricultural value chains in Madagascar, boost health system resilience in Benin, and construct a large-scale desalination plant in Jordan. (Green Climate Fund)

The GAIA Climate Loan Fund has secured a US$600mn first close to invest in climate adaptation and mitigation projects in emerging markets. The fund — co-founded by Japanese bank MUFG, the Canadian development finance institute, and the UN-backed Green Climate Fund — will extend long-term loans to government and other public bodies, like municipalities and development banks, across 19 poor countries. At least 25% of financing commitments will be made in Least Developed Countries (LDCs) and Small Island Developing States (SIDS), which are especially vulnerable to climate change challenges. The fund is being overseen by Climate Fund Managers, an organization backed by the Dutch development bank, FMO, and the Sanlam Group of South Africa. (Climate Fund Managers)

Hurricane Melissa has inflicted US$2.2-4.2bn in insured property losses in Jamaica, according to Verisk, the risk modeling company, with the storm’s intense winds causing the majority of damages. Melissa tore through wood-framed residential buildings and hardier commercial buildings alike ill-prepared for such extremes, exposing gaps in building code enforcement and the resilience of the country’s built environment. Verisk says insurance coverage remains sparse in Jamaica, with only around 20% of residential homes protected. (Verisk)

The World Bank signaled a likely payout from Jamaica’s US$150mn catastrophe bond following Hurricane Melissa, which would provide a much-needed cash injection to the storm-lashed island nation. The bond, issued under the IBRD’s Capital-At-Risk program, was developed with World Bank support and backed by a wide range of global investors. While the official calculation process is still underway, the bank’s early comments reflect confidence in the bond’s parametric trigger being met. Separately, the Caribbean and Central America Parametric Insurance Facility and Development Insurer is set to transfer a payment to Jamaica after Melissa triggered the country’s tropical cyclone policy. (World Bank)

One-quarter of equity value held across 18 major asset owner portfolios is already exposed to severe physical climate hazards, according to analysis by financial intelligence company MSCI. The study finds that 55% of listed equities in their portfolios, especially small- and mid-caps, face high hazard intensity at critical sites, and are vulnerable to compounding risks like heatwaves and water scarcity. Notably, the location of companies’ physical assets — rather than their listed headquarters — drives exposure, making traditional geography-based portfolio classifications dangerously misleading. (MSCI)

South Africa is ramping up investment in decarbonization and resilience, with climate flows averaging ZAR 188.3bn (US$10.9bn) annually in 2022–2023, according to a new report from the Climate Policy Initiative (CPI) and GreenCape. However, the study also shows financing for adaptation still lags far behind, with over 70% of flows heading to energy projects, and less than 10% to sectors like water, transport, and agriculture. The report estimates that a ZAR 31bn (US$1.8bn) annual financing gap remains, with adaptation and just transition measures the most under-resourced. (Climate Policy Initiative) 

Climate-related health threats reached “unprecedented levels” in 2024, underscoring the urgent need for adaptation policies in the healthcare sector, the latest Lancet Countdown report says.

The yearly analysis finds that 12 out of 20 indicators monitoring climate change-related health risks have soared to new highs. Heat-related deaths have increased 63% since the 1990s, with infants and adults over 65 experiencing a 300% to 400% rise in heatwave exposure compared to historical baselines. In 2024 alone, wildfire smoke-related fatalities hit 154,000 globally, and cases of dengue fever — a virus-transmitted disease spread by mosquitoes that are roaming more widely as the world warms — spiked to 7.6 million.

Health-related productivity losses are also making a dent in the global economy, the report warns, with losses linked to extreme heat challenges amounting to US$1.09trn last year, almost 1% of global GDP.

Governments and civil society are failing to respond to escalating climate-related threats with the requisite urgency, the report adds. It notes that mentions of “health” and “climate change” by governments in their annual UN General Debate statements plunged from 62% in 2021 to 30% in 2024. It also highlights signs of backsliding on climate-health engagement by the media and corporations. Finance for climate-adaptive healthcare systems is running low too, limiting their capacity to make protective interventions. “As a result, people are increasingly at risk from climate hazards, and often resort to maladaptive solutions that further harm the environmental conditions on which health depends,” the report reads.  

However, there was a positive finding on adaptation planning. Sixty percent of World Health Organization member states have developed a Health National Adaptation Plan to date, the report says, while the provision of climate change education for health professionals is growing. 

Still, the report concludes that without urgent emissions cuts, adaptation alone will be insufficient to protect health.

The Trump administration will not send officials to the COP30 summit in Brazil starting this week, signaling a continued retreat from multilateral climate action by the US. Reuters reports the move could ease the concerns of some world leaders, who feared the White House would send representatives to derail the talks. President Trump announced a second US exit from the Paris Agreement on his first day back in office, which is due to take effect in January 2026. The US State Department has also scrapped a number of financing engagements with climate-focused financing bodies this year. (Reuters)

A UN summary of countries’ climate actions finds that more than 100 are making meaningful progress on implementing the Paris Agreement, but warns of a shortfall in finance and technology support for developing nations and ongoing challenges with “capacity and data gaps”. The analysis is based on the first batch of 109 Biennial Transparency Reports, which parties to the Paris Agreement were required to submit by end-2024. (UNFCCC)

The UK government published a detailed response to the independent Climate Change Committee’s 2025 adaptation progress report, outlining a raft of efforts to strengthen national climate resilience. Specific measures include new flood defense funding, resilience standards for utilities, support for climate-smart farming, and guidance to help the National Health Service and local authorities manage heat and health risks. The government also committed to integrating adaptation into planning, spending, and regulatory frameworks, with a fourth National Adaptation Programme due in 2028 to set measurable goals. (UK Government)

California Insurance Commissioner Ricardo Lara is introducing a new Long-Term Solvency Regulation designed to strengthen the resilience of the state’s carriers against climate disasters and other threats. The draft rule would compel insurers to stress-test their underwriting, investments, and operations against climate scenarios for 2030, 2040, and 2050, and share information on climate-proofing strategies. A public workshop on the rule is slated for November 14. (California Department of Insurance)

Forty-four Democratic lawmakers, led by Representative Juan Vargas and Sean Casten, are urging Treasury Secretary and Financial Stability Oversight Council (FSOC) Chair Scott Bessent to reverse the recent dismantling of two key climate financial risk oversight bodies. In a letter dated October 24, the lawmakers warn that eliminating the Climate-Related Financial Risk Committee and its Advisory Committee weaken the FSOC’s ability to monitor systemic financial threats, especially as climate-driven disasters escalate in cost and frequency. (Representative Sean Casten)

Climate politics should shift focus from near-term emissions reductions to fighting poverty and building resilience, billionaire philanthropist and tech founder Bill Gates has said. In a sweeping memo ahead of the COP30 summit, Gates said that climate change —while serious — “will not lead to humanity’s demise” and pushed for investment and innovation in climate-smart agriculture, public health intervention, and other adaptation priorities. He pointed to analysis showing that faster economic growth alone could cut projected climate-related deaths in half — evidence, he argued, that development should be a central pillar of climate strategy. Gates added that the success of climate efforts should be judged not by global temperature changes, but by how much they improve the resilience and prosperity of the world’s most vulnerable people: “[P]rioritize the things that have the greatest impact on human welfare. It’s the best way to ensure that everyone gets a chance to live a healthy and productive life no matter where they’re born, and no matter what kind of climate they’re born into,” he wrote. (Gates Notes)

FireTech start-up Frontline Wildfire Defense has raised US$48mn in Series A funding to build out its advanced water and foam protection system for residential properties.

The Wyoming-based company, founded in 2017, designs customized systems to protect buildings from ember ignition — the leading cause of home loss during wildfires. These systems can be installed in both new and existing homes and are designed to function independently of municipal infrastructure, which can be knocked offline during wildfire events.

During the devastating 2025 Los Angeles wildfires, the company activated systems on 61 homes in high-risk zones — 96% of which survived. 

The funding round was led by Norwest, a venture and growth equity investor focused on scaling early-stage companies. “We see tremendous opportunity for Frontline’s proven technology to transform how communities prepare for and respond to wildfire threats,” said Jon Kossow, managing partner at the investor. As part of the fundraise, Kossow has joined the Frontline Wildfire Defense board of directors.

Geographic information systems (GIS) giant Esri is deepening its partnership with Amazon Web Services to accelerate and improve the integration of generative AI into its ArcGIS geospatial platform. The move promises to streamline enterprise-scale deployment of AI-powered mapping and analysis tools across sectors, from disaster risk reduction to infrastructure planning. The partnership is also intended to fast-track the development of AI assistants and foundational models to handle the growing wave of geospatial data and ease adoption of these tools by GIS practitioners. (Esri)

The WRI Ross Center has launched CityMetrics, an interactive dashboard tracking climate and sustainability indicators across more than 60 cities, aimed at helping local leaders prioritize resilience strategies. Built by the Urban Analytics and Data Innovation team, the tool covers seven themes: flooding, heat, air quality, accessibility, land protection, biodiversity, and climate mitigation. Users can pinpoint city-specific risks or explore patterns of adaptation and climate vulnerability across urban centers. The platform also enables historical trend analysis, revealing, for example, the sharp drop in the amount of water-absorbing land in Jakarta since 1989. (WRI)

Assessment of Caribbean coastal hazard posed by tropical cyclones (American Meteorological Society)

Nature-based solutions for fire-resilient European forests (European Environment Agency)

All roads lead to reform: A financial system fit to mobilize $1.3 trillion for climate finance (UN Trade and Development)

Breaking the spiral of uninsurable climate losses: How effective investment can shield taxpayers from mounting natural catastrophe costs (Finance Watch)

Thanks for reading!

Louie Woodall
Editor