The Hindu Kush Himalaya (HKH), a lifeline for billions through its vast water systems, faces a severe climate finance shortfall, with funding needs projected at USD 12.05 trillion by 2050, according to a new regional analysis.
Annual funding needs remain far from met
The analysis, conducted by the International Centre for Integrated Mountain Development (ICIMOD), estimates the annual climate finance requirement for the eight HKH countries at about USD 768.68 billion. China and India together account for 92.4 per cent of the total projected funding needs.
‘Everest of funding’ challenge ahead
Describing the scale of the task, Ghulam Ali, Innovative Investment Specialist and lead author of the report, said mobilising USD 12 trillion would demand creative, comprehensive and collective financing strategies across governments and institutions.
High exposure, limited fiscal capacity
The report highlights that countries most vulnerable to climate impacts—Bangladesh, Bhutan, India, Myanmar, Nepal and Pakistan—are also among the least equipped financially to respond. Afghanistan, Nepal and Pakistan face adaptation costs far exceeding global averages, leaving them trapped in cycles of disaster response and recovery.
Climate finance as an equity issue
The study frames the crisis as one of economic inequality, with annual per capita climate finance needs ranging from USD 24 in some countries to more than USD 2,126 in others. These costs represent between six per cent and 57 per cent of GDP, forcing difficult policy trade-offs between development and survival.
Recommendations to close the gap
To bridge the financing divide, the report recommends improving access to existing multilateral climate funds, adopting innovative mechanisms such as debt-for-climate swaps, and increasing public expenditure for mountain regions and environmentally sensitive areas.
Report launch
The findings are detailed in Climate Finance Synthesis Report: Needs, Flow and Gaps in the Hindu Kush Himalaya Countries, launched at the “Enhancing Climate Actions in the Hindu Kush Himalaya” conference in Paro, Bhutan.
