OREANDA-NEWS. The global cost of adapting to climate change could reach $300bn by 2030 and $500bn by 2050, over three times higher than previous predictions, according to a UN report.

An in-depth review of national and sectoral costs was carried out for the report, looking primarily at coastal areas, water management and agriculture.

Total bilateral and multilateral finance for climate change adaptation reached $25bn in 2014, of which $22.5bn targeted developing countries. Developing countries in east Asia and the Pacific region attracted 46pc of the funding, with 55pc of the $25bn total directed to water and wastewater management projects.

Much more must be done to bridge the gap between current financing and the amount needed, and mitigation remains the best option, according to the UN report — the Adaptation Gap. "Because adaptation is a function of a missed mark for mitigation, it is important that there remains an emphasis on emissions reduction," it said.

But mitigation contributions to the December Paris climate deal must be significantly more ambitious if the amount of necessary finance is to be reduced. And even if emissions are cut more effectively, a very large adaptation burden will remain.

"Scaling up both public and private-sector sources of finance is required to bridge the adaptation finance gap, now and in the future," the report said.

Government agencies and development institutions must undertake targeted financial and non-financial interventions to provide capital and encourage flows of private-sector investment.

Deploying different kinds of financial instruments — such as debt, equity and insurance products — is vital in helping to bridge the adaptation finance gap, the report said. "Improving our understanding of private-sector financing for adaptation is key to unleash this potential," it said.

The 2015 Paris agreement includes several provisions to advance adaptation, of which three are particularly important — the adoption of a global goal on adaptation, the commitment to increase flows of developed country funding to developing countries, and the requirement on parties to draw up and regularly update adaptation plans and strategies.