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Countries in the Hindu Kush Himalaya region need $12.07tn in climate finance to meet adaptation and mitigation goals, an ICIMOD report says.
India’s climate finance requirement is estimated at $2.69tn, including $2.5tn for adaptation-related interventions.
The region’s annual climate finance need stands at $768.68bn, with India requiring $101.92bn a year, according to the report.
China and India together account for more than 92% of the region’s total climate finance requirement.
The report warns that actual climate finance disbursements remain far below needs, slowing efforts to protect vulnerable communities, livelihoods and ecosystems.
There’s a massive gap between climate ambitions and available funding, as countries in the Hindu Kush Himalaya region need more than $12 trillion in climate finance to meet their adaptation and mitigation goals, according to a new report by the International Centre for Integrated Mountain Development (ICIMOD).
The Climate Finance Synthesis Report estimates the total climate finance requirement of the eight Hindu Kush Himalaya, or HKH, countries at $12.07 trillion, equivalent to $768.68 billion a year.
China and India account for the largest share of this demand, with estimated climate finance needs of $8.46 trillion and $2.69 trillion respectively, the report said. Together, the two countries represent more than 92 per cent of the region’s total climate finance requirement.
For India alone, annual climate finance needs are estimated at $101.92 billion. The country’s per capita annual climate finance requirement stands at $69.6, equivalent to around 3 per cent of per capita gross domestic product (GDP), according to the report.
Climate finance flows remain far below requirements across the HKH region, the report warned. Between 2018 and 2021, India received the largest climate finance disbursement in the region, at $6.5 billion, the report said.
That represented 10.87 per cent of India’s total disbursed development finance during the period. Bangladesh received $0.76 billion, while China received $0.60 billion, according to the report.
Afghanistan, despite being one of the most climate-vulnerable countries in the region, received only $0.11 billion.The report identified a persistent gap between climate finance commitments and actual disbursements across HKH countries. Large sums are pledged, but the delivery of funds remains inadequate, slowing efforts to strengthen climate resilience and reduce emissions, the report said.
The challenge is especially acute for lower-income countries in the region, the report found.
Bhutan has the highest per capita annual climate finance need in the HKH region, at $2,126.5, equivalent to 57 per cent of its per capita GDP. Nepal requires $296.5 per capita each year, while Pakistan’s requirement is $166.1, according to the report. These levels are substantially higher than global adaptation finance benchmarks cited by the report.
The report identified adaptation as a pressing priority across the region. India requires $2.5 trillion for adaptation-related interventions, according to the report.
Bangladesh needs $86.04 billion for adaptation measures and $60.77 billion for mitigation, the report said. Pakistan’s adaptation requirement is estimated at $280.26 billion.
Agriculture, water resources, energy systems, forests, biodiversity conservation, urban infrastructure and disaster risk management emerged as the most critical sectors requiring investment.
Bangladesh’s largest needs are concentrated in water resources, agriculture and disaster management, while Nepal faces substantial financing requirements for agriculture, urban development and disaster resilience, the report said.
Scaling up climate finance must become a central policy priority for the HKH region, the report said. It called for greater mobilisation of international finance, improved access to concessional funding, stronger domestic resource mobilisation and better mechanisms to convert climate finance commitments into actual disbursements.
The report also stressed the need for country-specific financing strategies. Climate vulnerabilities and investment priorities differ significantly across HKH countries, it said. Tailored approaches, stronger institutions, improved research and data systems, and greater investment in adaptation are essential to protect vulnerable communities and build long-term resilience, the report said.
As climate impacts intensify across the Himalayan region, significantly higher and more predictable climate finance flows will be needed for countries to meet their national climate targets and safeguard lives, livelihoods and ecosystems, the report concluded.