Financing the fight against climate change doesn’t come cheap. As the world grapples with increasingly severe climate impacts, the financial toll is staggering. Trillions of dollars are needed to both recover from past damage and invest in climate resilience and emissions reduction. Yet, despite the urgent need, global efforts to mobilize climate finance remain inadequate.
At the heart of the issue lies a dual challenge: mobilizing adequate funding while ensuring that every dollar aligns with the climate priorities of vulnerable nations. Unfortunately, the latter often takes a backseat in global negotiations, where the focus is primarily on annual financial commitments.
This issue took center stage at the 2024 Climate Change Conference (COP29) in Baku, Azerbaijan, where organizations including Climate Reality, the Institute for Climate and Sustainable Cities (ICSC), the Munich Climate Insurance Initiative, and the Climate Vulnerable Forum emphasized that effective climate action requires not only sufficient funding (quantity) but also ensuring that every dollar delivers maximum impact (quality).
Only by ensuring that every dollar aligns with the priorities of vulnerable communities can we truly deliver climate justice.
Following the money
At an official United Nations COP29 side event, the organizations called for robust local-level tracking and validation, presenting case studies from the Philippines, South Africa, and Ghana to demonstrate how critical it is to ensure that funds actually reach those who need them most.
Between 2010 and 2022, international commitments for climate finance to the Philippines reached over $11 billion—split between over $5.4 billion for mitigation and $5.5 billion for adaptation. However, as of November 2023, only $4.2 billion (or 38 percent) had been disbursed: approximately $1.6 billion for mitigation and $2.6 billion for adaptation.
South Africa’s experience, on the other hand, underscores the challenges of loan-driven financing. Over $505 million in adaptation funds were committed between 2010 and 2022, with $504 million disbursed, primarily as loans. Mitigation funding followed a similar trend, with over $3 billion committed and $1.3 billion disbursed, also predominantly as loans.
Ghana presents a more balanced picture. Most adaptation funding ($500 million committed, $400 million disbursed) came as grants, though nearly $300 million originated as loans. Mitigation finance was largely grant-driven, with $660 million committed and $612 million disbursed.
These findings emerged through the efforts of ICSC and the African Climate Reality Project following the climate finance tracking workshop last July, which equipped campaigners with the basic skills for climate finance data mining and validation.
Importance of local tracking and validation
While these figures provide crucial insights, they only tell part of the story. Validating project implementation on the ground is equally vital. ICSC’s 2024 report underscored the need for robust tracking mechanisms to ensure funds are used effectively and align with local priorities.
Triangulating data with what’s being funded on the ground ensures accountability and aligns funds with actual needs, contributing to national discussions of how much more investments are needed to advance national and local climate targets.
Nana Mariam Yussif, African Climate Reality Project’s West Africa Hub Coordinator, visited the Worobong South Forest Reserve in Ghana, a project supported by the African Development Bank. This project successfully restored 4,800 hectares of degraded forest, enhancing biodiversity and improving livelihoods. However, challenges such as incomplete infrastructure and abrupt project termination highlighted the critical need for better tracking and accountability to ensure long-term sustainability and community wellbeing.
"Without proper tracking and accountability measures, climate finance projects also have the potential to leave communities behind, making them more vulnerable, after they have already adopted a new way of life," said Yussif.
Drawing the bottom line
Financing climate action isn’t just about securing billions or trillions. It’s about ensuring every dollar counts. Without accountability, the risks are two-fold: insufficient funding and misaligned priorities.
Currently, reporting systems prioritize the source of funds, obscuring their actual impact. This must change. Institutionalizing accountability mechanisms is essential. Until then, civil society organizations play a pivotal role in taking charge of the campaign for transparency.
This isn’t just about numbers. It’s about justice, equity, and the legacy we leave for future generations. Only by ensuring that every dollar aligns with the priorities of vulnerable communities can we truly deliver climate justice.