(Report in English only)

Overview 

This synthesis report, titled “Climate Adaptation Finance: Fact or Fiction?”, was developed by CARE International in collaboration with civil society partners and researchers in Ghana, Ethiopia, Uganda, Nepal, the Philippines, and Vietnam. The report critically analyzes climate finance flows reported by developed countries and evaluates whether these resources effectively support people most affected by climate change. The research focuses particularly on adaptation finance – funds intended to help communities reduce their vulnerability to climate impacts. The impetus for this study stems from the 2009 commitment by developed nations to mobilize USD 100 billion annually by 2020, with half earmarked for adaptation. To understand whether these commitments were being fulfilled in both quantity and quality, the study used a combination of project document reviews, field-level assessments, stakeholder interviews, and civil society consultations. It evaluated 112 projects in six countries from the adaptation finance portfolios of ten donor countries, including Germany, France, Japan, and the EU. 

The findings reveal substantial overreporting and inconsistencies. A significant number of the projects reported as “adaptation” lacked clear objectives or design features that would reduce climate vulnerability. Many failed to meaningfully involve affected communities in planning or decision-making. The research also uncovered a tendency to label large development loans or infrastructure projects as adaptation, even when climate relevance was minimal. 

The report calls for enhanced transparency, clearer definitions of adaptation finance, and stronger accountability mechanisms. It emphasizes the importance of aligning finance with local needs and ensuring that those facing the greatest risks are prioritized. Ultimately, the findings urge a shift from inflated accounting to genuine climate action that is inclusive, effective, and responsive to context. 

 

Key findings 

  • Donor countries significantly overstate the amount of adaptation finance provided. 
  • 42% of reviewed projects had minor or no relevance to climate adaptation. 
  • 10% of projects were not adaptation-related at all but were still counted as such. 
  • Loans, rather than grants, dominate adaptation finance, placing repayment burdens on already vulnerable countries. 
  • Many projects lack clear adaptation objectives or climate vulnerability assessments. 
  • Affected communities are often not engaged in project design or implementation. 
  • There is minimal focus on meeting the needs of marginalized groups or tailoring actions to specific local contexts. 

 

Policy Recommendations: 

  • Establish clear criteria for defining and classifying adaptation finance. 
  • Increase the share of grants over loans in adaptation support. 
  • Ensure full transparency and harmonization in donor reporting methods. 
  • Center community participation and local needs in adaptation planning. 
  • Prioritize actions that benefit those most affected by climate change. 

 

In 2009, developed countries made a commitment to support climate activities in developing countries. They promised to mobilise climate finance and scale it up to $100 billion in 2020, half of which to be spent on helping vulnerable people and countries adapt to climate change.

So that these financial commitments can be tracked, developed countries report how much they spend on international climate finance to the UNFCCC and OECD.

CARE has looked at the numbers, and our conclusion is clear: current official figures for adaptation finance are severely overstated and far too high.

Together with civil-society organizations in Ghana, Uganda, Ethiopia, Nepal, Vietnam and the Philippines, CARE has assessed whether rich countries’ reporting of adaptation finance is accurate, and whether the reported amounts genuinely contribute to climate adaptation.

In addition, we investigated whether the funded projects reflect local priorities and effectively reach those facing the highest levels of vulnerability. This research represents the most comprehensive adaptation finance tracking study to date.