Sustainable Budgeting and Climate Adaptation Finance: Optimizing Public Expenditures Amid Intensifying Climate Crisis

Amid accelerating climate change impacts, sustainable public finance has become a core prerequisite for achieving the Sustainable Development Goals (SDGs), particularly SDG 13 (Climate Action) and SDG 12 (Responsible Consumption and Production). This study examines the transformation of national budget expenditure structures to support climate adaptation measures in line with the Glasgow Climate Pact, emphasising the need for predictable, equitable, and sustainability-oriented financing mechanisms

The paper proposes a comprehensive mechanism for determining firm national commitments to climate adaptation financing and for strengthening the institutional foundations of the Adaptation Fund. The mechanism integrates (a) categorisation of countries based on decoupling performance and the sustainability of their economic–environmental trajectories; (b) an assessment of the historical relationship between economic growth, emissions intensity, and environmental degradation; and (c) forecasting of sustainability-related indicators to determine the required structural adjustments in budget spending.

The analysis shows that sustainable budgeting based on transparent environmental criteria and long-term sustainability goals can enhance countries' ability to finance adaptation, reduce vulnerability to climate change, and align budget strategies with the broader global sustainable development agenda.