MGI Research Highlights Massive Climate Adaptation Finance Gap at UN Conference

The McKinsey Global Institute presented research findings at a United Nations Climate Change Conference in Antalya. The research detailed the financial requirements for climate adaptation, noting that the world currently spends about US$190 billion annually on 20 proven measures. This spending is only one-third of the US$540 billion required to protect everyone exposed to climate hazards at developed-economy standards.

The findings indicate that while avoided losses from adaptation measures could be three times the current costs, increasing to seven times the costs at 2° Celsius of warming, current investment trajectories are insufficient. The research highlights a disconnect between what is economically sound for society and what is financially viable for governments and companies.

Turkey is hosting the COP31 climate conference in Antalya, with preparatory talks in Bonn setting the stage for key discussions, including the tripling of adaptation finance targets.