Effective funding for climate change adaptation must be compensatory, additional to existing aid, and easily accessible to the most vulnerable communities. Globally, adaptation finance is sourced through mechanisms such as the Global Environment Facility (GEF), the Adaptation Fund under the UNFCCC, and the Least Developed Countries (LDC) Fund. The GEF plays a central role, providing grants and concessional funding to developing countries for adaptation and mitigation projects, supporting technical assistance, and facilitating capacity-building initiatives. It works through key implementing agencies like UNDP, UNEP, and the World Bank, focusing on areas such as biodiversity, climate change, international waters, and ozone depletion.

Despite these structures, adaptation funding remains uncertain in quantity, timing, and accessibility. Current funds under the UNFCCC rely largely on voluntary pledges and a small surcharge on carbon trading through the CDM, making them insufficient and unpredictable. While official development assistance (ODA) occasionally supports adaptation indirectly, it often prioritises other issues like poverty reduction. Additional institutional support may come from UNEP, bilateral agencies (e.g., DFID, USAID), philanthropic foundations, and international NGOs. However, ensuring sustainable and inclusive adaptation finance still requires greater political commitment, streamlined access, and alignment with national priorities.