Discussion paper
This discussion paper examines the growing gap between humanitarian needs and available financing in the context of escalating climate impacts. Building on the 2016 Too Important to Fail call to action, it analyses trends in humanitarian funding, the drivers of rising need, and the structural constraints that continue to limit the effectiveness and sufficiency of the global humanitarian financing system.
Drawing on data from UN-coordinated appeals and Development Initiatives analysis, the paper shows how conflict, climate change and protracted crises have significantly increased humanitarian requirements, while funding has failed to keep pace. It explores where progress has been made—such as in cash-based assistance, transparency and localisation commitments—and where reforms have stalled, including the concentration of funding among a small donor base and limited shifts towards anticipatory and preventive financing.
The paper places particular emphasis on the intersection between humanitarian, climate and development finance, highlighting gaps in coordination and the risks of continued reliance on reactive funding models. Through illustrative case studies, it demonstrates how insufficient and poorly aligned financing contributes to repeated cycles of crisis. The paper concludes by outlining options to deepen and diversify the humanitarian funding base and to better align humanitarian action with climate risk reduction and long-term resilience efforts.
