Adapting to climate impacts is more critical than ever. Average global temperatures surpassed the 1.5°C threshold in 2024, and the ten worst climate-related disasters of 2025 caused over $120 billion in insured losses alone. Yet just as adaptation becomes more urgent, climate has slipped down the global agenda, leaving the developing countries most exposed to climate impacts—and least responsible for them—to adapt with shrinking international support.
This issue brief gives an overview of the history and current state of adaptation finance and examines how it overlaps with development finance and with loss and damage. It sets the goals agreed at COP29 and COP30 against estimated adaptation needs of $310 to $365 billion per year by 2035 and explains why, for many small island developing states and least developed countries, the form finance takes—grant-based and directly accessible—matters as much as the amount.
The brief argues that adaptation, sustainable development, and loss and damage should complement one another rather than compete for scarce, siloed funding. It makes the case for strict criteria on what counts as climate finance rather than the automatic separation of climate and development projects, and for multilateral climate finance to grow, grant-based funding to expand, and climate resilience to be mainstreamed across all development efforts. This will ensure the international system is ready to deliver when political will to tackle climate change returns.
The post Synergies and Challenges in Financing Adaptation, Sustainable Development, and Loss and Damage appeared first on International Peace Institute.
ELIAMEP’s analysts assess the latest developments and examine possible scenarios for the future of Iran–US relations, as well as their implications for the Middle East and international security.
Read it here (in Greek).
Das Bundeskabinett will heute Änderungen am Erneuerbare-Energien-Gesetz (EEG) auf den Weg bringen. Dazu folgt eine Einordnung von Claudia Kemfert, Leiterin der Abteilung Energie, Verkehr, Umwelt im DIW Berlin:
Die stärkere Ausrichtung auf Systemintegration, Speicher und Flexibilität ist grundsätzlich richtig. Positiv ist auch, dass beim Netzanschlusspaket gegenüber den ersten Plänen nachgebessert wurde. Dennoch bleibt problematisch, dass die Folgen unzureichender Netze zunehmend auf die Betreiber erneuerbarer Anlagen verlagert werden. Eine entschädigungsfreie Abregelung von bis zu 20 Prozent ist ein erheblicher Eingriff und kann Investitionen verteuern. Regionale Steuerung darf den dezentralen Netzausbau nicht ersetzen. Netzbetreiber müssen verbindlich zu schneller Optimierung, Digitalisierung und Ausbau verpflichtet werden.
Die Einigung auf die EEG-Novelle und das Netzanschlusspaket enthält wichtige Fortschritte: zusätzliche zwölf Gigawatt Windenergie an Land, stärkere Anreize für Speicher, eine höhere Beteiligung der Kommunen und gegenüber den ursprünglichen Plänen begrenztere Regeln zur entschädigungsfreien Abregelung. Positiv sind auch die Übergangsregelungen für kleine Photovoltaikanlagen. Damit wird ein wichtiger Schritt getan, um den Ausbau der Erneuerbaren ab 2027 rechtssicher fortzuführen.
Allerdings stimmt bei der EEG-Novelle die Reihenfolge noch nicht. Mehr Marktintegration kann sinnvoll sein, aber dafür müssen Smart Meter, digitale Infrastruktur, Speicher und bezahlbare Direktvermarktungsangebote vorhanden sein. Werden Einspeisevergütungen zurückgefahren, bevor diese Voraussetzungen flächendeckend geschaffen sind, droht vor allem bei kleiner Dach-Photovoltaik und Bürgerenergie ein Investitionsdämpfer. Entscheidend ist jetzt, Planungssicherheit über 2026 hinaus zu schaffen und Erneuerbaren-Ausbau, Netze, Speicher, Digitalisierung und Flexibilität konsequent gemeinsam voranzubringen.
Systemintegration ja, Investitionsbremse nein. Wer Erneuerbare stärker in den Markt schicken will, muss zuerst Netze, Smart Meter, Speicher und Flexibilität bereitstellen. Sonst werden Versäumnisse im Stromsystem auf diejenigen abgewälzt, die die Energiewende tragen. Kritisch bleibt, dass die Bundesregierung die Ursachen der Netzengpässe nicht konsequent beseitigt, sondern einen Teil der Risiken auf Investoren erneuerbarer Energien verlagert. Wer Investitionen in Wind- und Solarenergie durch neue Unsicherheiten erschwert, gefährdet den Ausbau ausgerechnet der Technologien, die für ein klimaneutrales, bezahlbares und sicheres Energiesystem gebraucht werden. Es ist ein Fehler, die Defizite bei Netzen, Digitalisierung und Flexibilität den Erneuerbaren anzulasten. Die Energiewende scheitert nicht an zu viel Wind- und Solarenergie, sondern an einem Stromsystem, das zu langsam modernisiert wird.
Exacerbated by the cuts in development cooperation (DC), many low- and middle-income countries (LMICs) are currently facing severe financial constraints. Against this backdrop, higher domestic revenue is a desirable goal for most countries. Greater attention is being devoted to enhancing domestic revenue in the international development policy discourse too – across the entire political spectrum. For some, the goal is to extend the decision-making scope of government and enhance the development focus of public action, while others hope to relieve the burden of transfers on industrialised nations of the Global North and end the recipient countries’ “addiction” to DC payments. Yet what options are actually available to LMICs to generate more domestic revenue? The present policy brief shows that taxing personal income and landed property in particular could offer opportunities for additional revenue. Another important area is the rationalisation of tax expenditures, which often lead to substantially less revenue without providing any evident benefit. At the same time, however, it is also important to recognise the systemic – and eminently political – nature of tax reforms. Above and beyond the issue of technical and administrative feasibility, the political achievability of reforms must also be taken into
account. Short-term tax increases – for example through higher consumer taxes or tariffs – are often not very sustainable in their own right.
Instead, the aim must be to place the “fiscal contract” between taxpayers and the state on a broader and more stable base where better public services also play a role. One type of revenue (in this case DC) therefore cannot simply be replaced by another (taxes) – a fact that advocates of DC cuts often fail to mention. During the transition, DC must continue to provide contributions, despite declining overall funds.
International players, including the German Government and the EU, can support partner governments in a variety of ways. They are already doing so, for example by promoting the Addis Tax Initiative (ATI). In addition, Germany and the EU should make a determined effort to help strengthen multilateral approaches to cooperation. This particularly applies to the United Nations (UN) Framework Convention on International Tax Coopera-tion currently being negotiated.
Exacerbated by the cuts in development cooperation (DC), many low- and middle-income countries (LMICs) are currently facing severe financial constraints. Against this backdrop, higher domestic revenue is a desirable goal for most countries. Greater attention is being devoted to enhancing domestic revenue in the international development policy discourse too – across the entire political spectrum. For some, the goal is to extend the decision-making scope of government and enhance the development focus of public action, while others hope to relieve the burden of transfers on industrialised nations of the Global North and end the recipient countries’ “addiction” to DC payments. Yet what options are actually available to LMICs to generate more domestic revenue? The present policy brief shows that taxing personal income and landed property in particular could offer opportunities for additional revenue. Another important area is the rationalisation of tax expenditures, which often lead to substantially less revenue without providing any evident benefit. At the same time, however, it is also important to recognise the systemic – and eminently political – nature of tax reforms. Above and beyond the issue of technical and administrative feasibility, the political achievability of reforms must also be taken into
account. Short-term tax increases – for example through higher consumer taxes or tariffs – are often not very sustainable in their own right.
Instead, the aim must be to place the “fiscal contract” between taxpayers and the state on a broader and more stable base where better public services also play a role. One type of revenue (in this case DC) therefore cannot simply be replaced by another (taxes) – a fact that advocates of DC cuts often fail to mention. During the transition, DC must continue to provide contributions, despite declining overall funds.
International players, including the German Government and the EU, can support partner governments in a variety of ways. They are already doing so, for example by promoting the Addis Tax Initiative (ATI). In addition, Germany and the EU should make a determined effort to help strengthen multilateral approaches to cooperation. This particularly applies to the United Nations (UN) Framework Convention on International Tax Coopera-tion currently being negotiated.
Exacerbated by the cuts in development cooperation (DC), many low- and middle-income countries (LMICs) are currently facing severe financial constraints. Against this backdrop, higher domestic revenue is a desirable goal for most countries. Greater attention is being devoted to enhancing domestic revenue in the international development policy discourse too – across the entire political spectrum. For some, the goal is to extend the decision-making scope of government and enhance the development focus of public action, while others hope to relieve the burden of transfers on industrialised nations of the Global North and end the recipient countries’ “addiction” to DC payments. Yet what options are actually available to LMICs to generate more domestic revenue? The present policy brief shows that taxing personal income and landed property in particular could offer opportunities for additional revenue. Another important area is the rationalisation of tax expenditures, which often lead to substantially less revenue without providing any evident benefit. At the same time, however, it is also important to recognise the systemic – and eminently political – nature of tax reforms. Above and beyond the issue of technical and administrative feasibility, the political achievability of reforms must also be taken into
account. Short-term tax increases – for example through higher consumer taxes or tariffs – are often not very sustainable in their own right.
Instead, the aim must be to place the “fiscal contract” between taxpayers and the state on a broader and more stable base where better public services also play a role. One type of revenue (in this case DC) therefore cannot simply be replaced by another (taxes) – a fact that advocates of DC cuts often fail to mention. During the transition, DC must continue to provide contributions, despite declining overall funds.
International players, including the German Government and the EU, can support partner governments in a variety of ways. They are already doing so, for example by promoting the Addis Tax Initiative (ATI). In addition, Germany and the EU should make a determined effort to help strengthen multilateral approaches to cooperation. This particularly applies to the United Nations (UN) Framework Convention on International Tax Coopera-tion currently being negotiated.
Vor genau einem Jahr stellte der Internationale Gerichtshof in Den Haag in einem Rechtsgutachten fest: Staaten sind völkerrechtlich verpflichtet, das Klima zu schützen und erhebliche Schäden zu verhindern. Der Klimaspruch kann ein Instrument der internationalen Klimadiplomatie sein, diese aber nicht ersetzen.