The Arab region is highly vulnerable to climate change.

The adverse effects of climate change are already being felt by rural and urban communities and across sectors.

Regional climate models project that the average annual temperature could increase by almost 5°C before the end of the century under the high emission scenario.1 Precipitation levels are projected to follow a decreasing yet volatile trend overall. More frequent droughts and forest fires will be witnessed in some areas, while an increase in the number of flash floods is expected in others. This is affecting water security, agricultural productivity, tourism, ecosystems and health. Socioeconomic and environmental impacts are projected to worsen in the future, with risks to security and stability. To enhance resilience, countries need to reinforce their adaptative capacity. This includes strengthening progress towards the achievement of national targets in support of the Sustainable Development Goals, and ensuring a just and inclusive energy transition that provides countries with the sustainable energy resources necessary to achieve those goals.

Addressing the challenges posed by climate change requires investment. Currently, many Arab countries have limited fiscal space, curbing their ability to meet expenditure commitments or allocate additional funds for climate action. The gross public debt in the Arab region reached a historic high of $1.4 trillion in 2020.2 National efforts to fight the impacts of the COVID-19 pandemic have exacerbated an already elevated public debt trend. Given recent interest rate hikes, current inflationary pressures and the war in Ukraine, the debt service burden is likely to rise further.

Consequently, international climate finance is urgently needed to help Arab countries enhance their resilience and adapt to the adverse impacts of climate change, and to pursue efforts to limit additional warming. For climate finance to be effective, both the quantity and quality of flows should be considered to meet the region’s needs.