Global efforts to combat climate change hinge on the effectiveness and fairness of climate finance. Yet, as highlighted at COP29, gaps in accountability and equity threaten to undermine progress, particularly in climate-vulnerable nations like the Philippines, Ghana, and South Africa.
The Conference of Parties (COP) is the decision-making body of the United Nations Framework Convention on Climate Change (UNFCCC). COP meetings, held annually, are central to global climate negotiations.
The most recent COP, COP29, took place in Baku, Azerbaijan, in November 2024, with a focus on advancing climate finance. Central to discussions was the New Collective Quantified Goal (NCQG) on Climate Finance, aiming to update the $100 billion annual commitment pledged by developed nations—a promise yet to be fully realized.
While developed nations pledged billions to help vulnerable countries adapt to and mitigate climate change, disbursement remains inadequate. For instance, only 38% of the $11 billion committed to the Philippines between 2010 and 2022 has been disbursed. Such delays hamper vital adaptation and mitigation projects, leaving vulnerable communities at risk.
Compounding the issue is the reliance on loans over grants, which burdens developing nations with debt. In South Africa, the majority of climate finance for mitigation is loan-based, raising concerns about debt sustainability. In contrast, Ghana’s emphasis on grants for adaptation showcases a more equitable approach.
However, it is not enough to critique donor nations alone. Recipient countries must improve transparency in tracking and validating climate finance flows. The lack of detailed information on fund allocation and usage at the community level creates opportunities for inefficiencies and misuse.
Local initiatives, such as the Climate Finance Accountability Initiative (CFAI) in the Philippines, provide a template for better oversight. By tracking international commitments and evaluating disbursement rates, these efforts can help align funding with national climate targets and community needs.
Still, climate finance must go beyond project-based solutions. Innovative mechanisms like Climate and Disaster Risk Finance and Insurance (CDRFI) offer a proactive approach, enabling communities to act quickly in response to climate-induced disasters.
The call for accountability in climate finance reflects broader geopolitical challenges. Wealthy nations, constrained by economic pressures, often prioritize domestic interests over global responsibilities. Meanwhile, developing countries face the dual burden of climate vulnerability and governance challenges, further complicating the efficient use of funds.
The upcoming COP30, to be held in Belém, Brazil, presents an opportunity to redefine the narrative. Set in the Amazon rainforest, the conference symbolizes the urgent need to protect the world’s lungs while fostering equitable solutions. It is a chance to push for a climate finance system that ensures funding reaches those who need it most, free from geopolitical posturing.
If global leaders fail to prioritize transparency, equity, and innovation in climate finance, the window to slow global warming will continue to narrow. The stakes are high: climate finance must transform from a promise into a lifeline.
