Putting Nature on a Balance Sheet: What It Is and Why It Matters
We face a paradox: Nature underpins the global economy — providing clean air, water regulation, flood protection, and pollination — yet remains largely invisible in most economic and financial decisions. This is not because its value is insignificant, but because nature is not seen as a critical asset that’s necessary for the economy.
The failure to fully recognize and embed nature’s value in economic and financial decisions has contributed to rapid ecosystem degradation and climate instability that now threatens economic resilience, food security, human health and quality of life.
According to the International Monetary Fund, nature loss is financially material in both directions: economic activity degrades ecosystems and ecosystem decline undermines economic growth, drives inflationary pressures and threatens financial stability. For example, banks face significant vulnerability to ecosystem degradation and biodiversity loss because many borrowers and assets depend on — and operate in — nature-dependent sectors such as agriculture, forestry and water-intensive manufacturing.
As ecosystems degrade, costs rise, yields fall and supply chains are disrupted, reducing borrowers’ abilities to repay loans, which thereby increases systemic risk. In agriculture, the economic value of crop production is 12% to 31% lower due to declining pollination as insects, birds and other pollinators succumb to climate change and other human-driven pressures such as land-use change, intensive farming techniques and harmful pesticides.
By embedding nature into balance sheets, countries and companies can recognize nature’s value explicitly in financial terms and better manage both physical and transition risks — strengthening economic stability while fostering more inclusive, nature-based growth. Furthermore, properly valuing nature can reduce risks that threaten overall economic and financial stability, while supporting long-term prosperity, particularly for emerging markets and developing countries that are rich in natural capital but often lack resources and incentives to protect or leverage them sustainably.
Experts, financial institutions and companies are increasingly exposed to nature-related risks across their operations and supply chains and are starting to recognize the need for putting nature on their balance sheets as the next frontier of risk management and long-term value creation, allowing businesses and governments to recognize, measure and manage their dependencies and impact on natural systems.
This article addresses why that matters, particularly from a private sector perspective, and introduces the Nature on the Balance Sheet Initiative, a coalition formed by the Capitals Coalition, The Landbanking Group, Systemiq and the Center for Global Commons, which seeks to make this transition possible. WRI is collaborating with the Nature on the Balance Sheet Initiative as part of its broader efforts to identify and advance innovative nature-finance mechanisms and investment vehicles aimed at scaling finance for nature.
Key Terms for Natural Capital Accounting
Natural Capital: The stock of renewable and non-renewable natural resources that combine to yield a flow of benefits (i.e., ecosystem services) to people. The term highlights that nature is a form of capital asset, comparable to produced capital (roads, buildings) and human capital (knowledge, skills).
Ecosystems: Both living components (plants, animals, microorganisms) and the physical environment that interact to provide services to people. In accounting terms, ecosystems are treated as assets described through ecosystem extent and condition accounts.
Ecosystem Services: The flows of benefits that people obtain from ecosystems. These are typically classified into: provisioning services (e.g., food, timber, water), regulating and maintenance services (e.g., flood control, climate regulation, soil fertility, pollination) and cultural services (e.g., recreation, aesthetic, spiritual value).
Nature-positive: A term used to describe an ambition that goes beyond “no net loss” or “net positive impact” toward a future where nature is visibly and measurably improved in absolute terms. While there is not yet a clear or consistent definition, “nature-positive” is best understood not as a target for individual organizations but as a shared goal to halt and reverse nature loss.
Understanding Nature on a Balance Sheet: Foundations and Emerging PracticePutting nature on the balance sheet is a figurative way to recognize natural capital as an economic driver in business, finance and government decision-making. It helps to illustrate the ways nature’s condition impacts financial performance and economic strategy, ultimately enhancing natural capital stocks over time.
It systematically measures and values how companies, investors and economies depend on and impact natural systems (forests, water, soils, biodiversity, climate regulation) and incorporate those values into financial statements, risk assessments and investment decisions. Making nature-related outcomes visible enables capital allocators to better understand how these dependencies affect business performance and resilience. This, in turn, helps direct finance toward activities that generate measurable nature-positive outcomes while managing exposure to physical and transition risks, reducing the likelihood of stranded assets (economic assets that may lose their value in response to environmental concerns) and fostering more resilient value chains and economies.
Nature on a Balance Sheet Resources
For practical guidance on this topic, explore the following resources:
- • The Roadmap for Putting Nature on the Balance Sheet
- • Making Natural Capital Account: An Investment Agenda
Historically, natural capital accounting has focused on national and subnational public systems, based on the intellectual and methodological foundations developed over several decades. The United Nations’ System of Environmental-Economic Accounting (SEEA) was first introduced in 1993 to link environmental data with national economic accounts. Meanwhile, the concept of “natural capital” gained traction in the 1990s as ecological economists such as Robert Costanza and Herman E. Daly argued that nature should be treated as a productive asset providing essential goods and services to human well-being and economic growth.
The SEEA Central Framework, adopted by the UN Statistical Commission in 2012, became the first global statistical standard for environmental-economic accounting. It focuses on the flows of nature’s goods to the economy (e.g., inputs, products and residuals), nature’s individual assets (e.g., water, energy), as well as economic activity related to the environment (e.g., nature-related expenditures).
The SEEA Ecosystem Accounting, adopted in 2021, expanded SEEA’s measurements to include regulating and cultural functions of ecosystems, by proposing measurement of ecosystems, their condition and provision of services.
Together, they offer a globally consistent approach to measuring the environment-economy relationship. The SEEA has already been used to support public policy making in high-priority areas such as climate change and environmental sustainability. However, as the framework is still novel, the producers and potential users of accounts must improve the understanding of SEEA's relevance to ensure a more systematic use for informing policies.
There is now explicit recognition that most companies, either directly or indirectly, depend on nature — for water access, soil productivity, pollination and stable climates — while also contributing to nature loss through land-use change, supply-chain impacts and emissions. High-profile financial institutions such as BlackRock and Goldman Sachs are beginning to integrate nature into investment decisions, reflecting a growing understanding that financial performance is inseparable from the state of natural systems. This growing urgency to manage nature-related risks and dependencies is shifting attention from public-sector accounting to corporate balance sheets and capital markets. Although still nascent, there is increasing recognition of the private sector’s critical role in assessing, accounting for and integrating natural capital into business and finance, and of investors’ influence in driving this transition.
Corporate Benefits of Putting Nature on the Balance Sheet
For the private sector practitioners, putting nature on the balance sheet offers the following benefits:
- Stronger Risk Management: For instance, recording restored wetlands or forests as productive assets or disclosing liabilities for degraded land, water or biodiversity loss. Many sectors, including agriculture, energy and water-dependent industries such as artificial intelligence, rely on nature’s regulating services. Failing to account for these dependencies can leave companies exposed to both physical (e.g., resource scarcity, supply-chain disruption due to nature loss and natural disasters) and transition risks (as policies, markets and consumer preferences shift).
- Better Decision-Making: Embedding natural-capital metrics into accounts can improve long-term planning and inform trade-offs about land use, production and investment, enabling companies to align financial returns with ecological resilience and avoid stranded assets.
- Increased Revenue and Innovation: Properly valuing ecosystem services can create new income streams, such as through clear metrics and long-term value for buyers of ecosystems, biodiversity credits, nature-linked contracts and nature-based financial products (e.g., Natural Asset Companies, parametric insurance for ecosystem services) that can reduce costs, diversify revenues and strengthen resilience.
- Demonstrated Industry Leadership: Embedding nature on the balance sheet can signal genuine industry leadership by moving beyond commitments to measurable action. Demonstrating how nature-related performance contributes to financial outcomes positions a company as a frontrunner in transparency and accountability. This not only differentiates them in client and investor engagement but also strengthens trust among regulators, communities and supply-chain partners.
While the concept of adding nature to balance sheets in the private sector is still emerging, several pioneers across different sectors are already integrating natural capital value into financial and strategic decision-making. For example, Forico, a forestry company in Tasmania, used natural capital accounting and demonstrated that when ecosystem services are valued, the broader contribution is roughly four times higher than what appears on its conventional balance sheet. The company tripled in value before being acquired by three pension funds for more than $670 million in 2023.
The Nature on the Balance Sheet Initiative has been working with three early-stage projects in agriculture, mining and financial services. These pioneering efforts, which are still being implemented, provide proof-of-concept examples that other companies can learn from.
BelterraBelterra, founded in 2020, works with smallholder farmers in Brazil’s Amazon and Atlantic forests to shift degraded pastureland to biodiverse agroforestry systems that improve productivity — such as for cacao production — while helping conserve critical biomes. Its model combines technical assistance, blended finance and commercial partnerships to support transitions at scale. In its first two years, Belterra has established 1,800 hectares of biodiverse agroforestry areas and protected 18,000 hectares of land, with a target to restore 40,000 hectares of Brazilian forests by 2030.
Belterra’s practice shows that compared to monoculture, agroforestry plots show 55% less soil erosion, more than 50% less nutrient run-off, better water retention, higher biodiversity and more than 2.6 metric tons more of carbon dioxide equivalent sequestration per hectare per year compared to degraded pasture or monoculture. These ecological gains support higher long-term yields, greater climate resilience and lower environmental risk — key benefits that buyers and regulators are beginning to demand as deforestation-related regulations and ESG expectations tighten.
Building on these outcomes, Belterra is piloting an approach to quantify, verify and value in monetary terms the ecosystem service benefits associated with its cacao production. These include carbon removal, soil-water retention and improvements in species diversity and habitat quality. Modeling suggests that these services add roughly $3,600 of “nature value” per ton of cacao beyond the commodity price. By embedding this verified nature value into outcome-linked offtake contracts, Belterra seeks to reward regenerative farming, attract outcome-based funders and offer buyers a traceable, climate-aligned supply of cacao that outperforms monoculture both ecologically and financially.
Vale Base MetalsVale Base Metals (VBM) is exploring how putting nature on the balance sheet can reinforce its existing commitments under the Taskforce on Nature-Related Financial Disclosures (TNFD) and the International Council on Mining and Metals by treating natural capital as an intangible asset that safeguards the long-term viability of mining operations. VBN is exploring how investment into nature could represent reduced risks, avoided costs and new revenue opportunities, thereby strengthening enterprise value.
The company has piloted natural capital assessment at the Carajás mining complex in Brazil, mapping landscape changes between 1986 and 2023 to understand how conservation actions have preserved value. The Landbanking Group and VBM are undertaking modeling to assess the value created by different nature investment opportunities, for example, establishment of an ecological corridor, water-body restoration, agroforestry systems on degraded pasture and riparian-zone protection.
Manulife Investment ManagementManulife Investment Management is one of the world’s largest natural capital investment managers, with over $11.5 billion in timber assets across 5 million acres of timberland as of 2024. An early adopter of TNFD, Manulife has piloted natural capital accounting to demonstrate how nature contributes to long-term asset performance.
Manulife’s pilot focuses on linking ecosystem services directly to asset performance and valuation. For example, in the Neches watershed in Texas, Manulife manages riparian forests, wetlands and floodplain habitats where water-regulating services are valued at several million dollars annually. By enhancing these ecosystem assets — improving wetland health and forest resilience — the company aims to reduce wildfire, flood and drought risks; and open new revenue opportunities such as payments for ecosystem services. As markets begin to reward nature stewardship, assets demonstrating measurable natural capital value could attract price premiums and interest from investors seeking climate- and nature-aligned portfolios.
Challenges and Opportunities for ScalingMomentum is building as early adopters rapidly advance the technical foundations for putting nature on the balance sheet. This frontier is now focusing on overcoming four key areas that hold back wider adoption:
- Creating clear pathways on how to integrate natural-capital valuation into concrete business and financial decisions.
- Mobilizing and activating key stakeholders — accountants, auditors and boards — to embrace the opportunities, moving past initial risk aversion and providing clarity on disclosure and fiduciary duties.
- Showcasing financial returns to clearly demonstrate how natural capital valuation can translate into direct financial returns in the market thanks to the development of high-visibility proof-of-concept projects.
- Aligning regulations and incentives to create a policy environment for corporate action, including phasing out negative subsidies.
This progress is amplified by significant advances in nature-data technologies, such as high-resolution remote sensing, automated monitoring and environmental DNA, which have significantly lowered the cost of measuring ecosystem extent, condition and services, opening new frontiers for accountability and scale. Furthermore, a deeper understanding of the enabling conditions for mainstream uptake has also improved, with recent analyses highlighting the importance of consistent standards, credible governance and access to blended finance. Integrating nature into corporate accounts not only strengthens business risk management but also enables capital markets to reward nature-positive performance and penalize destructive practices, while revealing new opportunities for inclusive growth.
More evidence and real-world proof points are needed to build investor confidence and demonstrate how natural capital valuation creates tangible financial and resilience benefits. Strengthening and scaling pilot initiatives will be essential to generate this evidence base and move toward consistent adoption at scale – a challenge and opportunity that will be at the forefront of the UN Climate Change Conference (COP30) in Belém, which some are referring to as the “Nature COP.” If these opportunities are seized, putting nature on the balance sheet can evolve from an experimental concept into a mainstream financial lever for resilience, competitiveness and systemic change.
nature-on-a-balance-sheet-mangrove-planting.jpg Finance nature-based solutions corporate sustainability Economics Type Technical Perspective Exclude From Blog Feed? 0 Authors Esther Choi Jamie Batho Costanza Rinaldi Marta Santamaria Rosimeiry Portela Lenka MooreSTATEMENT: Mexico Announces Strong New Climate Commitment
MEXICO CITY (November 11, 2025) – Mexico has officially approved and presented its new Nationally Determined Contribution (NDC) at COP30. The plan marks a milestone in the country’s climate policy, introducing for the first time an absolute emissions cap for 2035 that covers all greenhouse gases and sectors of the economy.
Reinforcing its contribution to the Paris Agreement’s objectives, Mexico has committed to reducing emissions to 364–404 million tons of carbon dioxide equivalent (MtCO₂e) unconditionally, and to 332–363 MtCO₂e with international support — a level the government estimates represents a reduction of more than 50% compared to the business-as-usual scenario. The NDC includes five interconnected components — mitigation, adaptation, loss and damage, enabling conditions and means of implementation, and cross-cutting themes — that together outline a pathway for inclusive, low-carbon growth and resilient development.
See the Spanish version.
Below is a statement from Francisco Barnés Regueiro, Executive Director, World Resources Institute Mexico:
“Mexico’s new climate plan stands among the most ambitious new climate targets from a major emitter, charting a path toward a stronger, more inclusive, and resilient economy. It places people and nature at the heart of decision-making and reflects the government’s intent to align climate action with economic opportunity, jobs, social equity, and sustainable growth.
"Mexico is aiming for deep emission cuts by 2035, in line with its pledge to reach net zero by 2050 – backed by an absolute target for greater transparency and accountability.
“On adaptation, the plan strengthens actions across five strategic areas, from climate-resilient production systems and integrated water management to the protection of strategic infrastructure and cultural heritage. New components on loss and damage, as well as on climate and security, reflect the government’s focus on managing the social and economic risks of the climate crisis.
“The NDC also embeds principles of gender equality, human rights, and intergenerational equity, ensuring that climate action addresses inequality, poverty, and vulnerability. It aims to deliver a just transition that creates decent jobs and broadens economic opportunity for women, Indigenous peoples, Afro-descendant communities, youth, and others historically left behind.
“Mexico’s ambition is clear, but delivering on these goals will require deep structural transformation and a clear, sustained investment strategy that positions climate action as a driver of inclusive and sustainable growth. Success will depend on clear sectoral pathways, robust financing mechanisms, and strong implementation plans once the full NDC is released. Aligning public budgets, financial instruments, and subnational policies with this new climate plan will be critical to unlocking innovation, boosting competitiveness, and creating good-quality jobs in low-carbon sectors.”
National Climate Action Mexico NDC COP30 Type Statement Exclude From Blog Feed? 0WRI Joins New Beat the Heat Initiative on Cooling Solutions for Cities, Launched at COP30
Today, WRI joined, as a partner, the Beat the Heat (Mutirão contra o Calor Extremo) initiative, a new effort launched at COP30 led by the COP30 Presidency and the UN Environment Programme (UNEP)’s Cool Coalition.
Beat the Heat helps accelerate the implementation of local solutions to mitigate extreme heat, which contributes to more than 500,000 deaths a year. It also aims to advance sustainable cooling mechanisms through new technical assistance and financing pathways. The initiative invites countries, cities and regions to join a collective effort to turn UNEP’s Global Cooling Pledge into meaningful local action and operationalize the EPIC Facility, the pledge’s key implementation mechanism.
WRI will serve as a core analytical and technical assistance partner for Beat the Heat, lending its urban analytics and capacity-building expertise to support local action.
Through this initiative, partners have committed to supporting cities in implementing solutions using a dual approach: enabling direct access to funding for on-the-ground implementation and providing technical assistance through a suite of technical partners. New commitments at COP30 bring the number of endorsers of Beat the Heat to over 185 cities as well as 83 partner organizations.
“Heat is the people’s agenda,” said Stientje van Veldhoven, WRI’s Vice President and Regional Director for Europe, at the Beat the Heat launch event in Belém. “Cities are key to protecting people against heat. We need better data so we can invest at speed and scale.”
Building Knowledge and Capacity for Cooler CitiesWRI’s partnership on Beat the Heat builds on its extensive experience working with cities on several initiatives that support urban heat mitigation.
One of these initiatives is the Cool Cities Lab, a data platform that enables detailed analysis of local heat risk and cooling solutions. Slated to launch in March 2026, the platform will allow cities to explore fine-grain metrics, identify the neighborhoods most vulnerable to rising temperatures, and tailor action plans to effectively reduce heat risks.
The Cool Cities Lab also enables cities to model the potential heat-reduction impact of a range of local solutions, from street trees to cool roofs and shade structures. By exploring the cooling potential of different interventions, individually or in combination, cities can develop data-informed intervention plans that deliver meaningful cooling benefits.
Through the Cool Cities Lab, WRI will provide data and analysis to cities participating in Beat the Heat.
Supporting this effort is Data for Cool Cities, through which WRI works with urban decision-makers to accelerate the adoption of cooling measures. This initiative equips cities with the data and tools needed to plan, fund, deploy and track solutions. Data for Cool Cities supports cities in three essential ways: by providing data to fill critical information gaps; building data analysis applications that create actionable insights; and scaling solutions through a global community of practice. To date, WRI has worked as a key technical support and implementation partner with more than 30 cities in 12 countries aiming to build their resilience to extreme heat.
Another initiative, the Urban Heat Solutions Accelerator, provides capacity building on developing urban cooling projects currently being implemented to support five Brazilian cities. By focusing on building cities’ long-term capacity to develop heat-resilience projects and establishing reliable financing mechanisms to support implementation, the Accelerator offers the potential to produce lessons and best practices that can strengthen the global Beat the Heat initiative.
WRI and Drexel University’s Climate Change and Urban Health in Latin America Project (SALURBAL) are also conducting research on how heat, in combination with social factors and multiple aspects of the built environment, influences health-related impacts in neighborhoods in Belo Horizonte and Campinas, Brazil. Through the Heat and Health in Brazilian Cities project, WRI is working with community members and policymakers in both cities to guide research and support the design and implementation of heat adaptation measures that safeguard health and promote equity.
Speeding Up Action for Heat-Resilient CitiesWith climate change intensifying and increasingly threatening lives and livelihoods, now is the time for cities to take meaningful action on heat. WRI Ross Center is proud to join the coalition of partners behind Beat the Heat and contribute to the technical expertise needed to accelerate the implementation of effective heat solutions in more cities.
Interested in joining the effort to Beat the Heat? Register here.
Want to learn more about Cool Cities Lab? Sign up for updates.
Cities Brazil Cities Urban Development extreme heat COP30 Type Project Update Exclude From Blog Feed? 0 Projects Authors Pablo Lazo Elizondo Eric Mackres John-Rob Pool Eillie AnzilottiRELEASE: New Coalition Launches at COP30 to Accelerate Clean Energy Growth in Latin America
Launched by the WRI Polsky Center for the Global Energy Transition and partners, the initiative will help companies scale clean energy solutions, decarbonize sectors and generate green jobs across the region.
(Belém, BRASIL) November 11, 2025 — At COP30 in Belém, Brazil, the WRI Polsky Center for the Global Energy Transition – in partnership with Global Renewables Alliance (GRA), Global Wind Energy Council (GWEC) and Climate Group’s RE100 initiative – today launched the Latin America Clean Energy Coalition (LACEC), a major initiative to rapidly scale corporate clean energy adoption and accelerate Latin America's transition to a low-carbon, climate-resilient economy.
The coalition brings together leading companies, energy developers, financiers, civil society and policymakers to unlock investment, accelerate breakthrough solutions and advance policies that make clean energy more affordable, accessible and scalable across the region. Together, these efforts will help Latin America move closer to reaching its goal of tripling renewables by 2030. Nike is the founding member.
“Latin America has all the ingredients to lead the global energy transition,” said Fernando Páez, Executive Director of WRI Colombia, “With over 60% of the region's electricity already from clean sources and more than 2 million renewable energy jobs created in 2023, the foundation is strong – but much more must be done. LACEC will mobilize the private sector to turn that potential into action – helping industries decarbonize, strengthen competitiveness, and spark new job growth.”
Despite this potential, the region faces persistent challenges that slow the adoption of clean energy. Current national plans and targets are projected to deliver only half of the annual growth in renewable power needed to stay on track. Key obstacles include an energy mix overly reliant on hydropower, weak grid infrastructure, and limited cross-border interconnections – gaps that LACEC aims to address.
“Latin America’s clean energy potential is immense, but realizing it takes more than ambition – it takes action,” said Trigya Singh, Senior Manager Corporate Sourcing, Global Renewables Alliance. “Through LACEC, we're helping energy buyers, sellers and policymakers involved in sourcing renewable energy, access renewable power more easily, clearing regulatory roadblocks, and sparking a wave of clean energy projects. These projects will help boost energy security, drive sustainable growth and transform Latin America.”
Building on the successful Asia Clean Energy Coalition (ACEC) model, which catalyzed corporate renewable energy adoption across Asian markets, LACEC will serve as Latin America's hub for clean energy leadership and knowledge exchange. The coalition will help companies design and implement robust renewable energy strategies, work with governments to drive enabling policies, and coordinate finance and investment to rapidly scale clean energy projects across industrial and manufacturing sectors.
“Success in Latin America's renewable energy transition won't come from technology alone – it needs effective collaboration and strong governance,” said María Teresa Ruiz-Tagle, Executive Director, Corporate Leaders Group for Climate Action – Chile (CLG Chile). “The region needs a clear roadmap built on public-private-civil collaboration, with smarter storage, streamlined regulations and electrifying key sectors. We're convinced LACEC can help turn these priorities into real progress across Latin America.”
LACEC will launch its work in Brazil, Colombia, and Mexico, with plans to expand soon to Chile and Argentina. The coalition builds on WRI's deep regional presence and proven expertise in advancing evidence-based solutions for the global energy transition, together with the industry leadership of GRA, GWEC, and RE100. Further expansion across Latin America is planned for later phases, with a full list of partners to be announced in early 2026.
“This is a crucial moment for Mexico, as energy demand grows and momentum builds behind renewable energy development,” said Francisco Urbano Barnés Regueiro, Executive Director, WRI Mexico. “LACEC is uniquely positioned to help strengthen infrastructure, align policies, and improve energy distribution and storage. We are proud to join this collective effort and contribute to a more sustainable and inclusive energy future for Mexico and the wider Latin America region.”
Companies interested in joining LACEC or learning more about the coalition can contact Diego Merizalde, Program Lead for the Latin America Clean Energy Coalition, info@latamcleanenergycoalition.com.
About the WRI Polsky Center for the Global Energy Transition
The WRI Polsky Center for the Global Energy Transition harnesses analytical power, convening ability and global expertise to help orchestrate the transition to a clean, abundant and reliable energy future by delivering evidence-based, pragmatic and scalable solutions. The nonpartisan WRI Polsky Energy Center seeks to overcome critical barriers to modernizing and expanding energy grids, scaling financing and deployment, sourcing critical minerals responsibly and building a skilled, future-ready workforce.
About the Global Wind Energy Council
The Global Wind Energy Council (GWEC) is the international trade association for the wind power industry. Its mission is to ensure that wind power establishes itself as the answer to today’s energy challenges, providing substantial environmental and economic benefits. GWEC is a member-based organisation that represents the entire wind energy sector. Members of GWEC represent over 1,500 companies, organisations and institutions in more than 80 countries.
About the Global Renewables Alliance
The Global Renewables Alliance (GRA) is a partnership formed by leading associations representing wind power (Global Wind Energy Council), solar power (Global Solar Council), hydropower (International Hydropower Association), green hydrogen (Green Hydrogen Organisation), long-duration energy storage (LDES Council) and geothermal energy (International Geothermal Association) that focuses on overcoming challenges to the global transition to a sustainable energy future.
About RE100
RE100 is a global initiative bringing together the world’s most influential businesses committed to 100% renewable electricity. Led by Climate Group, our mission is to drive change towards 100% renewable grids, both through the direct investments of our members, and by working with policymakers to accelerate the transition to a clean economy. RE100 was established in partnership with CDP. The initiative has over 400 members, ranging from household brands to critical infrastructure and heavy industry suppliers.
Energy Latin America Energy Latin America COP30 Clean Energy Type Press Release Exclude From Blog Feed? 0STATEMENT: Brazil Announces Pledge to Quadruple ‘Sustainable Fuels’
Belém, Brazil (November 7, 2025) — At the COP30 Leaders’ Summit, Brazil announced the Belém 4X Pledge on Sustainable Fuels, a commitment to quadruple production and use of ‘sustainable fuels’ by 2035, along with Japan, Italy, India and others. The fuels mentioned in the pledge include hydrogen, biogases, biofuels, and e-fuels.
The pledge cites a new report by the International Energy Agency (IEA) that envisions a quadrupling of these fuels by 2035, including a doubling of biofuel production.
Following is a statement from Janet Ranganathan, Managing Director of Strategy, Learning and Results, World Resources Institute:
“While countries are right to transition away from fossil fuels, they also need to ensure their plans don’t trigger unintended consequences, such as more deforestation either at home or abroad. Doubling biofuel production would have significant implications for the world’s land, especially without guardrails to prevent large-scale expansion of land dedicated to biofuels, which drives ecosystem loss.
“Already today, at least 40 million hectares of cropland are used globally to grow biofuel feedstocks, an area the size of Paraguay. And the world’s land is under pressure to provide more food and wood products for a population that will grow toward 10 billion by 2050. At present rates of cropland expansion, an area nearly the size of India would be converted from nature to food production between 2020 and 2050. Increasing biofuel mandates would create significant extra pressure for land conversion.
“WRI’s global research shows that expansion of land dedicated to biofuel production is likely to have serious negative impacts on food security, nature, and climate because it competes with food production or natural ecosystems. Biofuel production on agricultural land implies trade-offs with both food production and restoring land to nature. Agricultural products are commodities in global markets, and policies that increase demand for these products will raise prices and likely lead to expansion of new cropland. Both responses are likely to have negative impacts on climate, food security, and nature. Furthermore, many models and carbon accounting frameworks undercount biofuels’ land carbon cost or miss it entirely.
“That’s why both the land and the types of biomass used for fuels matter. The pledge says that efforts to scale up fuel use must be environmentally and socially responsible. But it does not include critical caveats from the IEA report: that biofuel expansion should not further increase cropland use, and that waste and residue-based biomass potentially offer a more sustainable pathway than feedstocks grown on dedicated land—although the amounts are limited, making scalability challenging. National policies should account for these important nuances.
“All countries should develop a strategy for how best to use their limited land to advance prosperity and meet people’s growing needs for food, while achieving climate and nature goals. These strategies should align with national pledges to halt deforestation and preserve existing ecosystems. Any mandates that intensify pressure on land risk undermining those commitments.
“More locally grounded research is needed to inform these strategies. For instance, how can Brazil best use its 40 to 100 million hectares of degraded land to meet its needs for food, wood products, jobs, revenue and energy, while protecting and restoring nature and meeting climate goals? As the demands on our land grow, while the planet’s land area stays the same, evidence-based land-use planning will be essential to balance competing priorities.”
Forests COP30 biofuels land use Type Statement Exclude From Blog Feed? 0STATEMENT: COP30 Leaders' Summit Concludes with Major Pledges for Climate, Nature and People
Belém, Brazil (November 7, 2025) — The COP30 Leaders’ Summit concluded today with major announcements and pledges from world leaders, as well as political calls to action ahead of the formal negotiations beginning on November 10.
New initiatives and commitments included the Tropical Forest Forever Facility, a major finance mechanism to protect forests; pledges for Indigenous Peoples and local communities’ finance and land rights; a pledge to quadruple 'sustainable fuels'; a Call to Action on Wildfire Resilience; and the Belém Declaration on Hunger, Poverty and Human-Centered Climate Action.
Following is a statement from Ani Dasgupta, President and CEO, World Resources Institute:
“Leaders made the journey to Belém to show that investing in cleaner, more resilient economies isn’t just about the environment — it’s about long-term security and competitiveness. They showed they are transitioning their economies with green growth at the core, even as they recognized there’s still a long way to go.
“Nature was the star of the show, and rightly so in the heart of the Amazon. While we’ve made incredible progress on renewable energy and electric vehicles, leaders are now stressing that nature must also be central to the climate battle. Their pledges showed that action is not just about protecting trees. It’s about building an economy around standing forests that supports the people who depend on them, making sure they have land rights and access to finance.
“The energy transition also took the spotlight. Some countries pledged to transition away from fossil fuels toward ‘sustainable fuels,' but they must ensure the solutions they choose don’t trigger unintended consequences like more deforestation.
“Cities took center stage at the Local Leaders Forum in Rio, where more than 14,000 cities, towns, states, regions and provinces affirmed their commitment to advancing on-the-ground climate solutions. The local level is where ambition turns into action. Stronger partnerships between national and subnational governments will be key to accelerating results.
“It’s no surprise that Brazil and emerging economies across the Global South are leading the charge to unite the climate, nature and people agendas — from launching the Tropical Forest Forever Facility to advancing a declaration tackling hunger and poverty. These countries are showing that development and decarbonization go hand in hand.
“As countries now move toward official negotiations, the hard work begins. Many leaders have stepped up with new national climate commitments to cut emissions. But there remains a major gap between those plans and the critical benchmark of 1.5C — both in countries’ goals and the action to achieve them. COP30 in Belem needs to confront this gap head on.
“Governments need to reaffirm the 1.5C target, the benchmark for a livable, healthy planet, and agree to a roadmap that drastically accelerates implementation. Countries should also spell out clear strategies to transition major sectors and support workers, including in energy, forests & agriculture, and transport —both for the next five years and for the long-term path to net zero.
“And finally, adaptation will be a major focus. Some developing countries are calling for a new goal to triple adaptation finance by 2030. This looks possible by 2035 but only if every source steps up — from development banks and bilateral aid to new concessional finance and scaled private investment — and the system works better as a whole."
International Climate Action COP30 Forests Cities NDC adaptation Type Statement Exclude From Blog Feed? 0Advancing Local Climate Action for Ambitious NDCs 3.0
Nations around the world are ushering in a new decade of climate action through revised nationally determined contributions (NDCs), due this year. The urgency for climate action has never been greater, especially with 2024 marking the warmest year on record globally. While the urban content of NDCs is improving, it remains insufficient and doesn't reflect the increasingly urban world we live in. UN-Habitat analysis showed that only 27% of the last round of pledges under the Paris Agreement included strong urban content.
Through the Coalition for High Ambition Multilevel Partnerships (CHAMP) for Climate Action, launched at COP28, WRI has worked to advance the subnational content of new NDCs due this year, also known as "NDCs 3.0." The CHAMP initiative is a pledge by 78 countries, to date, to include subnational governments in producing new NDCs as well as incorporate strong subnational content into these plans in order to progress, finance and deliver more ambitious and inclusive climate action overall.
Through CHAMP, WRI has provided technical assistance to four countries in particular during this latest round of NDC updates, with each demonstrating how cooperation is essential for ambitious climate action:
ColombiaIn 2024, WRI Colombia and Colombia's Ministry of Environment and Sustainable Development designed and launched a strategy to involve subnational governments in the NDC update process and increase national and subnational climate ambition. In partnership with the German Society for International Cooperation (GIZ) and with support from Bloomberg Philanthropies, five regional workshops were hosted in five geographies: Medellín, Bogotá, Yopal, Cali and Barranquilla. The workshops were designed for a diverse set of subnational actors — including youth; women; and representatives from secretariats, local government, and Indigenous and Afro-Colombian groups — to create a more inclusive process for the country's updated NDC.
This year, WRI Colombia and the country's Ministry of Housing hosted a workshop to identify implementation gaps for four measures in its NDC 2.0 that showed the least progress (two mitigation measures and two adaptation measures). During the workshop, key actions were prioritized to help overcome these barriers and define the next steps for 2026, 2028 and 2030.
In addition, WRI Colombia set up a Steering Committee with members from the Ministry of Housing, the National Planning Department and the Ministry of the Environment, as well as representatives from NGOs, multilateral development banks and subnational governments, to develop a shared understanding of urban challenges in the NDC 3.0 and how to address them.
On Sept. 25, Colombia submitted its "declarative" NDC 3.0. This acknowledges the role of subnational governments in planning and implementing climate mitigation and adaptation measures and promotes governance that integrates national and subnational perspectives.
RwandaIn November 2024, WRI Africa, in close collaboration with the Rwandan Environment Management Authority (REMA) and the Ministry of Environment, organized a five-day, in-person workshop to surface district priorities for Rwanda's new NDC. The event brought together 130 participants representing all 30 of the country's districts — specifically, directors in charge of planning, agriculture and natural resources — to consolidate local and regional priorities and contribute to the national NDC enhancement process. The event was followed by a three-day, in-person validation workshop ensuring adequate capture of these priorities. Findings from the consultations were synthesized into a report and submitted to REMA to inform Rwanda's NDC 3.0.
Building on this foundation, in March 2025, WRI and ICLEI-Local Governments for Sustainability Africa supported REMA, the Ministry of Environment and the Rwandan Local Government Association to convene a policy dialogue with district vice mayors in charge of economic development. The dialogue aimed to strengthen political support for a whole-of-government approach to NDC implementation, fostering stronger coordination between national and subnational levels. WRI and partners also participated in a workshop with the Ministry of Environment and other key stakeholders to validate the draft NDC.
On Nov. 7, Rwanda published its NDC 3.0. This includes a higher mitigation target and a commitment to an economy-wide 53% reduction in greenhouse gas emissions by 2035, relative to business as usual. The new NDC also emphasizes building capacity at the local level by investing in training and resources for districts, and calls for identifying and institutionalizing "climate focal points" in all 30 districts.
KenyaWRI Africa, in partnership with the Financing Locally Led Climate Action (FLLoCA) program, Ministry of Environment, Climate Change and Forestry (MECCF) and the Climate Change Directorate, organized a series of virtual meetings with climate change directors from all of Kenya's 47 counties. These consultations provided a platform to present Kenya's draft NDC 3.0 and gather feedback on how county-level climate priorities had been integrated into the national process.
In February 2025, WRI Kenya, in collaboration with C40 and the Global Covenant of Mayors, convened a CHAMP National Finance Accelerator Roundtable on the sidelines of the UrbanShift Forum in Nairobi. This brought together key stakeholders to discuss opportunities for strengthening local access to climate finance and advancing multi-level collaboration on NDC implementation.
In May 2025, Kenya submitted its NDC 3.0, one of the earliest countries to do so.
On Oct. 28-29, WRI Kenya and the Office of the Special Envoy for Climate hosted a High-Level Convening to advance coordination, finance and implementation of Kenya's climate commitments under its new NDC. WRI Kenya, in collaboration with the Council of Governors (CoG), NDC Partnership (NDCP) and the Government of Kenya, will also convene two multistakeholder dialogues, focused on energy and transport and water and nature-based solutions, in November 2025.
EthiopiaWRI Ethiopia held a high-level NDC 3.0 kickoff workshop in March 2025 in collaboration with the Ministry of Planning and Development, sector ministries, NGOs, civil society organizations and the private sector. Following the workshop, WRI and the sector ministries also conducted a review of Ethiopia's NDC implementation to date. Building on this, WRI is further assessing implementation at the subnational level, with a case study focusing on Addis Ababa and a particular emphasis on the energy sector because of its relevance to the urban environment. WRI held an additional consultation workshop in early August to better understand how subnational elements of the new NDC might be implemented and produce practical suggestions for strengthening localization of the NDC.
Led by the Ministry of Planning and Development, and in consultation with the Ministry of Urban Development and Infrastructure and 30 local authorities, WRI also developed a greenhouse gas emissions estimation for Addis Ababa. The aim is to scale this to other cities, helping to emphasize the need for city-level investments in climate action.
In September 2025, Ethiopia released its NDC 3.0, which includes a 2035 mitigation target and revised, more ambitious mitigation, adaptation and financing targets in comparison to its last NDC. The new NDC commits to multilevel and multisectoral engagement and implementation to ensure broad ownership and alignment of climate action.
Editor's note: An update was made on Nov. 10, 2025 to reflect the release of Rwanda's NDC 3.0.
nairobi.jpg Cities NDC Cities National Climate Action Urban Efficiency & Climate Type Project Update Exclude From Blog Feed? 0 Projects Authors Abiyot Dagne Carolina Useche Chaandi Malhotra Héctor Miguel Donado Ivy Murgor Marc Manyifika Max Jamieson Nadia Shah Naidoo Pandora BatraFor New Global Forest Pledges to Succeed, They Must Center Forest Communities
Forests are among our most powerful allies in the fight against climate change. As the world races to halt and reverse deforestation globally by 2030, recognizing the role of the people who safeguard them is more critical than ever.
At the UN Climate Summit (COP30) Leaders' Summit in Belém, Brazil, governments and stakeholders unveiled three global commitments that recognize the conservation value of these communities and mark a significant step forward for forest protection. These pledges aim to scale up both forest financing and formal land rights for Indigenous Peoples, Afro-descendants and local communities.
However, achieving these goals could face some hurdles. The process of getting legal ownership of land is typically complex and can take years. Without formal land deeds, forest guardians can face structural and institutional barriers to accessing the financing needed to sustain conservation efforts.
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One way to help turn these pledges into reality is through customary land rights recognition, which means recognizing that communities have the right to their traditional lands based on long-standing customs and ways of life, even without formal legal titles. Customary land rights can provide those already protecting forests with a pathway and structure to receive near-term funding and help lay the groundwork to secure long-term, formal tenure in the future.
3 Pledges for Forests and RightsThe following three commitments were made at the COP30 Leaders' Summit in November:
- The renewed Forest and Land Tenure pledge of $1.8 billion expands on the historic Forest Tenure Pledge made at COP26 in Glasgow, Scotland, in 2021, with the goal of supporting Indigenous and community forest tenure rights and halting and reversing forest loss and land degradation by 2030.
- The Tropical Forest Forever Facility, or TFFF, endorsed by 53 countries so far, is an innovative $125 billion blended-finance mechanism — combining public, philanthropic and private capital — that pays forest countries for maintaining standing tropical forests. It requires at least 20% of the fund to go directly to Indigenous Peoples and local communities.
- The Intergovernmental Land Tenure Commitment, or ILTC, is a landmark commitment aimed at securing and legally recognizing 160 million hectares of land for Indigenous, Afro-descendants and local communities, and strengthening existing laws governing community land tenure.
Together, these commitments signal a growing consensus that securing forest stewards’ land rights and access to finance is essential to safeguarding the planet’s climate and biodiversity.
Why Land Rights and Finance Are NeededIndigenous Peoples, Afro-descendants and local communities steward more than one-third of the world’s intact forests and biodiversity areas within their territories, and deforestation rates on these lands are up to 26% lower than the global average. While about 11% of lands and forests globally are formally recognized as theirs, at least 1.375 billion hectares of their lands remain without legal recognition by national governments.
Without formal land rights, communities are often excluded from direct climate and forest financing. This happens because funds usually go to those who are legally registered as landowners, which is often the state rather than the forest communities themselves. From 2011 to 2024, less than 1% of international climate financing reached programs that support Indigenous and community land tenure and management, and only a fraction of that went directly to community-led organizations. Of the $1.7 billion COP26 Forest Tenure Pledge, just over 10% reached Indigenous and community-led organizations in 2023.
As a result, these communities often lack the resources needed to effectively protect forests from incursions, encroachments and land grabs, and to invest in land management practices that support global forest goals.
When the new COP30 finance commitments begin to flow, communities lacking formal land rights could again be left behind. Even proposals such as the TFFF, which allocates 20% of its funds for direct community access, may fall short if the funding delivery mechanism isn’t clearly defined.
Logging in Congo. The Forest Tenure Pledge, made at COP26 in 2021, aims to halt and reverse deforestation and land degradation by 2030. Photo by Scott Thompson/WRI Recognizing Customary Forest StewardshipMany forest countries already recognize customary forest tenure, although the degree of recognition varies significantly. While these rights don’t grant full ownership, they can establish recognized forms of forest stewardship that can provide a foundation for communities to access financing and pave the way toward formal land titles.
These forest tenure approaches typically include legitimacy vetting, geospatial mapping and recording in information registries, and documented conservation outcomes, which can serve as important building blocks to fulfill countries’ commitments under the ILTC and Pledge 2.0.
Here are several proven approaches to forest stewardship based on customary land tenure:
Recognizing colonial-era or ancestral land grantsPayments for ecosystem services, or PES, programs that pay landowners to maintain forest cover typically require formal land ownership. This often excludes many Indigenous and smallholder communities. But Guatemala’s PINPEP program (National Incentives Program for Small Landowners with a Forestry Vocation) provides a different approach: It allows participants to join the program using verified colonial-era land grants and municipal certificates of possession in lieu of formal titles.
PINPEP recognizes verified customary possession and land use, allowing communities already protecting forests to access funds without undergoing the lengthy and costly process of getting formal land titles. The results are promising: An evaluation of Guatemala’s PES system from 2007 to 2022 found a 3.4% drop in forest cover loss in Indigenous and smallholder forests under PINPEP, compared to a 1.6% increase in forest cover loss in forests under Guatemala’s PES program for titled landowners.
Legal recognition of Indigenous and Community Conserved AreasIndigenous and Community Conserved Areas, or ICCAs, — also known as “Territories of Life” — are ecologically critical lands and waters governed and managed by Indigenous and rural communities based on their own customs, traditions and institutions. These lands recognize communities as collective stewards rather than private owners and provide a framework through which funding and conservation support can directly reach them.
These lands include sacred forests, community-managed forest areas, pastoral lands and coastal or marine regions that demonstrate positive conservation outcomes, even if conservation is not the primary objective. They are established by the communities themselves, based on deep historical and cultural connection to the area and their use of traditional land management systems. ICCAs are subject to peer review before being designated as such and recorded in the global ICCA Registry.
Many countries legally recognize ICCAs, and donors are increasingly supporting them. For example, the German International Climate Initiative, or IKI, funded ICCA development in 45 countries, while World Wildlife Fund-Canada has established a fund to enable First Nations, Inuit and Métis Indigenous communities to create and manage their own protected areas.
Recognizing long-term community forest management rightsMany countries grant long-term forest management rights to state-owned forests. While forestland remains state property, communities gain exclusive rights to use, manage and protect it. This recognition allows them to participate directly in climate fund initiatives.
There are several examples of this in practice. Indonesia’s social forestry program, or Perhutanan Sosial, grants long-term permits of up to 35 years for local and customary communities to sustainably manage state forests. A study spanning from 2007 to 2018 found that these areas saw a steady increase in primary forest and a decrease of secondary forest converted into non-forest areas. At the same time, local livelihoods and incomes rose by up to 92% in some regions.
Similarly, in the Democratic Republic of Congo, the local community forest concessions program, or CFCL, grants customary communities within or near national forest estates perpetual user rights to as much as 50,000 hectares of land. Since early 2024, more than 166 CFCLs have been granted, covering over 3 million hectares. A study found that CFCLs have up to 23% lower deforestation rates than the national average and 46% lower than logging concessions.
Community-led reforestation in Indonesia. These types of efforts help restore degraded forests and strengthen local stewardship of natural resources. Photo by James Anderson/WRI A Turning Point for Forests and RightsRecognizing the role of communities in protecting forests as a valid reason to fund them is not only sound climate policy — it is a matter of equity. These and similar land-rights approaches offer a practical, high-impact pathway toward achieving the goals set under the new COP30 forest commitments.
The three forest commitments pledged during COP30 can be transformative, but only if they lead to action that puts land rights at the center. Ultimately, fully recognizing the rights of Indigenous Peoples, Afro-descendants and local communities to their lands is the only way to protect the world’s forests and our shared future.
As COP30 sets the tone for the next phase of global climate action, securing land rights and unlocking finance for those who protect forests are two of the most strategic, effective and urgent investments the world can make.
This article was originally published on Oct. 21, 2025. It was updated on Nov. 7, 2025, to reflect the latest news and information.
Correction, 10/29/25: A previous version of this article stated that only 11% of the lands managed by Indigenous Peoples, local communities and Afro-descendant populations are formally recognized. We have updated the article to clarify that these groups hold legal title to 11% of land and forests globally.
hero.jpg Equity & Governance Indigenous Peoples & Local Communities land rights COP30 Forests climate finance Climate Equity Type Commentary Exclude From Blog Feed? 0 Authors Celine Salcedo-La Viña Minnie Degawan Kevin Currey Edward Davey
STATEMENT: Brazil Rallies Global Action on Wildfire Resilience at COP30
Belém, Brazil (November 6, 2025) — Today at the COP30 Leaders’ Summit, Brazil and a group of countries committed to a voluntary Call to Action on Integrated Fire Management and Wildfire Resilience. It includes a framework to boost wildfire resilience through science, policy and traditional and Indigenous knowledge. This Call to Action comes as fires drove record-breaking forest loss last year, according to Global Forest Watch analysis.
Following is a statement by Rod Taylor, Global Director for the Forest Program, World Resources Institute:
“We’re entering an alarming new era as fires became the leading cause of tropical primary forest loss last year for the first time on record. This Call to Action signals that governments are waking up to the fact that preventing wildfires needs to be a top priority if they are to save the forests that underpin their economies.
“It's especially notable that civil society organizations from across the tropics and conservation groups have also signaled support for this Call to Action.
“Climate-fueled conditions are driving more frequent and severe wildfires, which are often started by humans either to clear land for large-scale agriculture or as a traditional land management tool. From Brazil to Bolivia, fires surged across Latin America last year at a scale we haven’t seen in recent history.
“Governments should use this Call to Action to kickstart greater investments in fire prevention, early warning systems, and building resilient response approaches. Addressing wildfire risk needs to go hand-in-hand with slashing emissions that drive hotter and drier conditions.
“The framework’s commitment to involve Indigenous and local communities — among the world’s most effective forest stewards but disproportionately affected by wildfires — in building fire management and prevention initiatives is all-important. To prevent catastrophic fires, effective fire management programs should support the use of traditional controlled burns and minimize farmers’ reliance on fires to manage land when wildfire risk is high.
“Plans like the Tropical Forest Forever Facility (TFFF) could provide even greater incentive for governments and businesses to invest in fire preventive strategies and improve forest communities’ livelihoods — as payments to countries hinge on them keeping forests standing.”
Forests Asia Africa Latin America Oceania North America Europe fires COP30 Type Statement Exclude From Blog Feed? 0STATEMENT: Countries Announce Pledges to Support Indigenous Peoples, Afro-Descendants, and Local Communities’ Land Rights and Finance
Belém, Brazil (November 6, 2025) — At the COP30 Leaders’ Summit, countries announced three global commitments that recognize and support the role of Indigenous Peoples, Afro-descendants and local communities in protecting forests with increased finance and stronger land rights.
These landmark pledges include a renewed Forest and Land Tenure pledge for $1.8 billion in funding through 2030; the Intergovernmental Land Tenure Commitment, co-led by Brazil, Norway and Peru, which aims to secure and formally recognize 160 million hectares of land for these communities; and the Tropical Forest Forever Facility (TFFF), which includes a target requiring 20% of payments to go to Indigenous Peoples and local communities.
Following is a statement from Wanjira Mathai, Managing Director for Africa and Global Partnerships, World Resources Institute:
“Together these initiatives demonstrate a massive and welcome shift in recognizing the central role that Indigenous Peoples, Afro-descendants, and local communities play in protecting the forests that sustain us all. These pledges represent both a matter of justice for these communities, survival for our forests, and necessity for our climate goals.
“Research shows that when communities have secure land rights, forests flourish. Deforestation rates on lands stewarded by Indigenous Peoples, Afro-descendants and local communities are up to 26% lower than the global average. These communities steward more than 54% of the world’s intact forest, and their lands often hold higher biodiversity and store more carbon.
“Yet today communities lack legal recognition for over 1.3 billion hectares of their traditional lands, limiting their access to capital and decision-making power. That’s why the Intergovernmental Land Tenure Commitment is so critical, as it could catalyze political momentum in more countries to set national targets for recognizing land rights.
“Stronger land rights and more direct access to finance go hand in hand. Only around 10% of the prior $1.7 billion Forest Tenure Pledge directly reached Indigenous Peoples and local communities. This renewed pledge must ensure more direct access to finance and spur a power shift — from projects designed for communities to solutions led and owned by them.
“These commitments could be transformative, but only if governments turn these words into action.”
Indigenous Peoples & Local Communities Asia Africa Latin America Forests deforestation land rights COP30 Type Statement Exclude From Blog Feed? 05 Ways COP30 Can Make Progress Where Countries’ Climate Plans Fall Short
Amid record heat and worsening climate impacts on people’s lives, 2025 is a turning point for global climate action, as countries renew their climate commitments — known as Nationally Determined Contributions (NDCs) — under the international Paris Agreement. This process reveals whether global ambition to tackle climate change is rising fast enough to meet the crisis head on.
Over the past decade, the Paris Agreement has delivered meaningful progress. Prior to the agreement, the world was hurtling toward 4 degrees Celsius (7.2 degrees Fahrenheit) of warming by the end of the century. Ten years after the agreement’s adoption, the latest NDCs and current policies bring us closer to a 2.3-2.8 degrees C (4.1-5.0 degrees F) trajectory — modestly better than the previously projected 2.6-3.1 degrees C (4.7-5.6 degrees F) path.
Yet even with this shift, we remain far above the 1.5 degrees C (2.7 degrees F) guardrail set by the Paris Agreement that can prevent some of the most serious damage from a warming planet. And while some sectors are showing real momentum — including the renewable energy, transport and land-use action reflected in many countries’ NDCs — overall progress is still dangerously slow.
Every fraction of a degree of warming the planet avoids helps secure a safer, greener future. And the investment required to achieve this is far less than the costs of the alternative path, which would bring increased floods, wildfires, insecure food supplies and destroyed lives.
At the annual UN Climate Change Conference (COP30) in Belém, Brazil, nations must confront the gap between current climate pledges and what is needed to unlock a new economy that’s better for both people and the planet.
Here, we propose five key actions that countries can rally behind for a credible response:
- Reaffirm 1.5 degrees C and commission a global roadmap for ambition and implementation.
- Accelerate near-term sectoral action to deliver 2030 global goals.
- Mobilize long-term strategies for equitable, resilient transitions to net zero.
- Strengthen intergovernmental initiatives for greater impact.
- Deliver a credible finance package to back ambitious climate goals.
With countries gathered under one roof, a clear political response will be needed that faces up to the shortfall in ambition and seizes the economic, social and other opportunities that assertive action can provide.
During the 2025 UN Climate Change Conference, countries will need to reaffirm their commitments and create climate plans that will bring the world closer to the Paris Agreement's 1.5 degree C goal. Photo by Luis War. 1) Reaffirm 1.5 Degrees C and Commission a Global Roadmap for Ambition and ImplementationAcknowledging both the progress underway and the remaining gaps will be essential for sustaining global cooperation for deeper, faster action. As a starting point, COP30 should reaffirm that 1.5 degrees C remains the guiding star for global climate action. By doing so, it can send a clear political signal that the goal continues to be the benchmark for assessing progress toward achieving a healthy, livable and resilient world.
But underscoring those objectives alone will not be enough; COP30 will also need to spur implementation and drive ambition toward 1.5 degrees C in ways that ensure a just and inclusive transition. At COP30, countries could agree to develop a “Global Roadmap for Accelerated Implementation”— a forward-looking gameplan that identifies the pathways, policies and enabling conditions needed to achieve the Paris Agreement goals.
The roadmap can draw on findings from the Global Stocktake and insights from the NDC Synthesis Report to identify specific near-term and transformational opportunities for accelerating emissions reductions across key sectors such as energy, forests, transport and methane, while scaling up adaptation, resilience and just transition efforts — with a particular emphasis on the tremendous economic, social and other benefits that can be seized from taking climate action.
To underpin this process, the COP30 and COP31 presidencies could convene a high-level dialogue, anchored by technical analysis, to examine how different pathways, timelines and investment conditions can shape an equitable, systemwide transformation. The process could culminate next year at COP31 with the publication of a clear, actionable roadmap that identifies opportunities for urgent action, the sectors with the greatest potential for impact and the actors best placed to drive it forward.
2) Accelerate Near-Term Sectoral Action to Deliver 2030 Global GoalsBuilding on the roadmap for accelerated implementation, COP30 will also need to encourage countries to achieve near-term sectoral delivery by 2030. The task will involve translating collective signals from the Global Stocktake and the UAE Framework for Global Climate Resilience — along with the direction provided by the proposed global ambition and implementation roadmap mentioned above — into concrete economic planning, national policies and investments that can accelerate on-the-ground progress and deliver on the benefits of taking action.
At COP30, countries could be called upon to voluntarily develop near-term sectoral strategies and progress updates that translate and build upon their existing NDCs, turning national climate goals into concrete pathways for implementation. These strategies and updates could be submitted on a voluntary basis by countries to the United Nations Framework Convention on Climate Change (UNFCCC) to inform the second Global Stocktake, which begins at the end of 2026 and concludes in 2028.
For the greatest impact, these strategies should be focused on the priority areas highlighted in the Global Stocktake for 2030 (e.g., tripling renewable energy capacity, doubling energy efficiency, transitioning away from fossil fuels, driving down transport emissions, and halting and reversing deforestation, among others), as well as the thematic areas of the UAE Framework for Global Climate Resilience (e.g., water, health, ecosystems and biodiversity, and infrastructure).
While these global priorities are shared, their emphasis will naturally vary by country. Sectoral strategies can be used to set each country’s own specific plans, policies, investment priorities, support needs and enabling reforms needed to strengthen near-term actions. Most importantly, these strategies are a key opportunity to describe the actions that can seize the substantial benefits for the economy and people’s lives.
3) Mobilize Long-Term Strategies for Equitable, Resilient Transitions to Net ZeroLong-term climate strategies — or long-term low greenhouse gas emission development strategies (LT-LEDS or LTS) — are a critical bridge between NDCs and the collective objective to limit global warming to 1.5 degrees C. Countries have already established 2030 targets and this round of NDCs sets emission-reduction targets through 2035, a key waypoint on the path to mid-century and the net zero goals set by many countries, most notably all of the Group of 20 major economies (G20). As countries move toward net zero, LT-LEDS allow them to outline key sectoral transformations and show how these steps can drive economic growth in the decades ahead, informing and spurring the policy decisions that governments take now.
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Now more than ever, these strategies are essential for helping countries focus on the sectors that have a domino effect across the wider economy such as energy, food and agriculture, and transport. So far, nearly 80 countries have developed and submitted long-term strategies — but fewer than 10 have updated their initial plans, and more than 100 have yet to produce one.
COP30 can be a turning point, calling on all countries to submit or update LT-LEDS by COP31, treating the strategies not just as paperwork but as catalysts for real sectoral transformation, fully integrated into economic policies, development strategies and finance plans. G20 countries, in particular, should lead by example by developing implementation pathways that align their near-term goals (e.g., 2030 and 2035) with just transition toward their national net-zero and resilience goals. These pathways should also be integrated into national development objectives and processes.
4) Strengthen Intergovernmental Initiatives for Greater ImpactThroughout the year, the COP30 presidency has brought renewed attention and momentum to the Action Agenda of initiatives outside the UNFCCC negotiations. Most important, it has sought to connect climate action initiatives and coalitions — including those involving national governments — to the formal COP process by aligning them with the themes of the first Global Stocktake on energy, forests, and more.
At COP30, there’s an important opportunity to place greater attention on the role of intergovernmental cooperative initiatives and coalitions and integrate them more fully into the Action Agenda, which has previously focused on initiatives by non-state actors. The number of these initiatives and coalitions has grown rapidly in recent years, and governments should now explore their impact and lessons.
COP30 can also play an important role in fostering transparency for these intergovernmental initiatives and coalitions, encouraging and driving regular reporting, including through the UNFCCC Global Climate Action Portal. During future COPs, dedicated events can allow these initiatives to share their successes, experiences, lessons and best practices.
5) Deliver a Credible Finance Package to Back Ambitious Climate GoalsDelivering a strong package of finance outcomes at COP30 will signal that the support needed to turn ambition into action is within reach. This includes progress on the Baku-to-Belém Roadmap — a collective pathway for scaling climate finance for developing countries from all sources through 2035 — which can spur action on key issues such as the cost of capital. Such progress would send a powerful signal that international public and private finance will flow to countries that step up ambition and translate this into strong domestic finance and public policy signals.
A key signal at COP30 would be the creation and further strengthening of country platforms as a way to align domestic and international finance, facilitate an enabling policy environment for investment across key sectors, develop investible pipelines, engage a broad spectrum of stakeholders and optimize the use of concessional finance to de-risk projects and unlock capital flows. This way, countries can integrate proposed climate plans into broader economic frameworks and promote an enabling environment for all finance flows to support progress towards climate commitments while strengthening countries’ development pathways.
Building an Actionable FutureThe gaps are clear, but so is the opportunity for getting closer to the goals of the Paris Agreement. COP30 gathers the world’s leaders armed with the tools to close the emissions and ambition gaps. What’s needed now is bold political action and a strong response to the NDCs to restore confidence in multilateralism, set the world more firmly on course to achieve climate goals and ensure shared prosperity from taking that action. The legacy of the Belém COP will rest in large measure on doing so.
solar-panels-coal-plant-emissions-gap.jpg Climate COP30 NDC climate change net-zero emissions climate policy Type Commentary Exclude From Blog Feed? 0 Projects Authors David Waskow Jamal Srouji Kiyomi de Zoysa Cynthia Elliott Nathan Cogswell Deirdre Cogan Natalia AlayzaSTATEMENT: Brazil Launches Tropical Forests Forever Facility
Belem, Brazil (November 6, 2025) – Today, at the COP30 Leaders' Summit in Belém, the Brazilian COP30 presidency formally launched the Tropical Forests Forever Facility (TFFF), a mechanism to provide long-term, predictable financing to countries that protect and sustainably manage their tropical forests.
After initial contributions from Brazil, Indonesia, Norway and Portugal have announced funding pledges so far, though almost 50 countries expressed support for the initiative. Brazil has set a $125 billion target for the TFFF, and aims to raise $10 billion initially from governments and philanthropies, which would spur further investments from private, corporate and philanthropic investors.
Following is a statement from Mirela Sandrini, Interim Executive Director, WRI Brasil:
“From the Amazon to the Congo to Southeast Asia, the forests that sustain us all are facing a global red alert. If enough countries contribute, this new mechanism could offer a breakthrough, flipping the economics of deforestation by making standing forests more profitable than clearing them.
“The backing from almost 50 countries is encouraging and marks an important start for the TFFF, reflecting growing recognition of the need for collective action to protect and restore tropical forests. However, the pool of those that have actually committed funding so far remains limited. Broader support will be essential if the Facility is to become fully operational. It is the ultimate test of whether nations — especially wealthier ones — will recognize their shared responsibility for protecting the forests that underpin every economy on Earth.
“As COP30 gets underway, new contributions in the coming days would be welcome news, strengthening the initial momentum.
“The Facility will only work if it truly benefits the Indigenous Peoples and local communities who depend on forests for their livelihoods. The provision requiring 20% of payments to go to Indigenous Peoples and local communities is a strong start.
“Raising money isn't enough, though. The next step is to design the operations manual, with transparent oversight and measures to prioritize and protect intact rainforests, while genuinely involving Indigenous Peoples and local communities. It must also deal with degradation – when forests are weakened by logging, mining or building roads – and leakage – where protecting one area simply shifts destruction elsewhere. Without that precision, the Facility risks being another good-intention promise, not a breakthrough.
“Importantly, the TFFF is designed by and for the Global South, reflecting local realities and priorities. It sets a precedent for tropical countries to shape their own climate solutions while responsibly engaging global capital markets. This is not just another fund: it embodies the broader shifts our financial system needs — attracting existing capital toward smart, climate-positive, and secure investments.”
Forests Asia Africa Latin America Oceania North America Europe COP30 biodiversity COP30 Featured Type Statement Exclude From Blog Feed? 0World’s Informal Housing Crisis Demands a Climate Response
When floods hit my hometown in Kenya last year, it was the poorest communities who suffered most. In Nairobi, where more than 3 million people live in vulnerable homes made of wood, sheet metal and concrete — many in low-lying flood plains — the waters faced little resistance. Entire homes were swept away as people slept.
The world’s housing and climate crises are deeply intertwined, wreaking havoc and reshaping life in cities around the world — from tragic flooding in Mexico to record-breaking heat waves in India. Urban communities are on the frontlines of climate extremes, bearing the brunt of escalating impacts. And while they have long been hubs of innovation and climate leadership, they cannot tackle this crisis alone.
The lesson is clear: National governments need to partner with cities to address the world’s housing and climate crises simultaneously. Poor-quality housing in highly vulnerable areas, combined with little to no access to basic services, creates a pernicious triple blow. The impacts ripple across urban and national economies.
After flooding in the neighborhood of Mathare, Nairobi, wiped out dense housing near the water, residents are working to stabilize the riverbank through greening and restoration. Photo by Schuyler Null/WRISome countries like Brazil, Colombia and Indonesia have already stepped forward, recognizing the leadership role that cities can play. For others, the COP30 UN climate summit in Brazil offers a launchpad to reimagine urban leadership and commit to bold- and inclusive action. In doing so, nations can unlock the power of cities as a major force in climate-resilient economic growth.
Today, cities produce 80% of global GDP, and they’re on track to house two-thirds of humanity by 2050. Yet in low-income countries, more than 60% of urban residents —over 1.1 billion people — live in informal settlements, sometimes called “slums.” That means 1 in 8 people on Earth lack resilient homes and basic infrastructure, making these communities uniquely vulnerable to the impacts of climate change.
So too are urban economies. The informal sector, despite being disregarded by policymakers for generations, is the lifeblood of many cities. It accounts for 50% to 80% of urban employment across the Global South. Informal businesses and services, like minibus operators and water deliverers, fill the gaps when formal municipal services don’t reach households.
On the frontlines of heat waves, landslides and floods, these neighborhoods often pioneer resilience-building efforts with resourceful, frugal innovations. In Nairobi’s Kibera neighborhood, 12 community-managed public spaces serve as first responder hubs, tame floodwaters and bring vital services to families, like laundry areas and small business kiosks.
Locally led initiatives like these should help shape cities’ formal climate efforts, which should in turn feed into – and be supported by – national governments. Yet informal settlements are almost universally left out of national climate plans and funding. Only 16 countries mentioned informal settlements in their previous national climate plans, known as Nationally Determined Contributions (NDCs).
Flooding in an informal settlement in Jakarta, Indonesia, in March 2025. Informal settlements are particularly vulnerable to the escalating impacts of climate change. Photo by Igro Rinaldi/UnsplashAs countries commit to new NDCs, they should set specific targets and resources for upgrading informal settlements with decent housing, securing land tenure, ensuring reliable access to basic services, and creating jobs. These actions would not only help alleviate poverty and inequality, but also keep people safer when the next flood or heat wave strikes.
Bringing communities into national climate plans can also unlock more funding for local priorities like housing. Through the Coalition for High Ambition Multi-Level Partnerships (CHAMP) , Kenya’s national government worked with local counties on its latest climate plan and now prioritizes flood control in informal settlements. It has also set up a much-needed mechanism to funnel resources for climate adaptation to vulnerable communities.
The momentum is building: 77 countries have now committed to CHAMP, promising a greater role for partnership between national and local governments.
The UN holds a vital key to unlocking urban transformation. By spotlighting urban action and informal settlements in future Global Stocktakes — and elevating these issues within international development frameworks like the post-2030 Agenda — the UN can galvanize national governments to close the urban equity gap.
At COP30, the ministerial round table on housing and informal settlements is a key step in the right direction. Its recommendations could steer overdue resources and adaptation finance to this long-overlooked agenda.
With these foundations in place, cities will be better positioned to improve climate resilience while supporting the hundreds of millions of people who live in informal neighborhoods and power their economies. They can team up with neighborhood groups and urban poor associations to create higher-quality housing and improve livelihoods — while scaling these efforts by partnering with national governments.
Iloilo City, the Philippines provides one blueprint. In the wake of Typhoon Fengshen, which submerged 80% of the city, the local government and local NGOs partnered to provide land, organize savings groups, finance, and co-design new housing projects. Almost two-thirds of the city’s poor families were settled in higher-quality housing without forced evictions or distant relocations. Since then, Iloilo City’s community-led housing projects have inspired similar projects in a dozen cities across the Philippines.
A community-led housing project in Iloilo City, Philippines. The city's innovative program helps communities gain access to high-quality housing that can withstand floods, storms and other climate impacts. Photo by WRICOP30 host Brazil, where over 16 million people live in informal settlements, provides another model. Its new Periferia Viva (“Living Peripheries”) federal program offers funding and technical assistance to states and cities for upgrading informal settlements. And Brazil’s new climate plan explicitly commits to “climate federalism” and addressing cities’ climate needs.
The pathway to climate action that delivers for people and the planet runs through our cities. Countries must prioritize decent, secure housing for the communities who keep urban economies running.
nairobi-informal-settlement.jpg Cities Philippines Kenya Colombia Brazil COP30 NDC climate impacts human rights Cities Urban Development Urban Efficiency & Climate Type Commentary Exclude From Blog Feed? 0 Related Resources and Data Multilevel Action for Community-Led Climate Resilience in Informal Settlements Projects- Coalition for High Ambition Multilevel Partnerships (CHAMP) for Climate Action
- Next Generation NDCs
- REHOUSE (Resilient, Equitable Housing, Opportunities and Urban Services)
- Upgrading Informal Settlements in Brazil’s Urban Periphery
- Integrated Climate Action
- Urban Efficiency & Climate
- Urban Development
Financing Nature Conservation: Will the Tropical Forest Forever Facility Finally Do It?
At the 1992 Rio Earth Summit in Brazil, the nations of the world agreed as part of the Forest Principles to provide financial resources for conservation efforts in developing countries with significant forest areas. Yet for more than three decades, the international community has struggled — and largely failed — to fulfill that commitment, particularly to developing nations with tropical rainforests.
These tropical forests are home to a majority of the planet’s biodiversity, play a crucial role in combating climate change and are critical to people’s livelihoods. Between 2002 and 2022, according to Global Forest Watch data, the world’s tropical humid primary rainforests shrunk by 8%, losing an area equivalent to nearly the size of Pakistan. This magnitude of loss has continued unabated, except in a few key tropical rainforest countries such as Brazil and Indonesia.
The basic challenge continues to be one of simple economics: Cutting and clearing natural forests for timber and agriculture is generally more profitable than leaving trees standing.
Conventional business practices are not designed to tangibly value and reward the conservation of forests, or their biodiversity and ecosystem services. Combined with continuing global demand for commodities, harmful subsidies in many countries, and weak and/or corrupt forest governance practices, this dynamic has increasingly degraded and destroyed the Earth’s tropical forests.
According to data from Global Forest Watch, between 2002 and 2022, the world’s tropical humid primary rainforests shrunk by 8%. Photo by PARALAXIS/Shutterstock. A Potential Breakthrough: The Tropical Forest Forever FacilityNow, Brazil is once again playing a critical role, leading the development of an innovative new forest finance mechanism that could offer a breakthrough and flip the economics in favor of conservation. The Tropical Forest Forever Facility (TFFF), which formally launched on Nov. 6, is designed as a “payment-for-performance” model that uses agreed satellite monitoring standards and systems to reward tropical forest countries with a continuing source of funding as long as they preserve their forests.
While other forest conservation mechanisms such as REDD+ and carbon markets focus on rewarding emissions reductions, the TFFF takes a different approach. It aims to pay tropical forest countries directly for each hectare of standing forest they maintain, with payments decreasing based on any deforestation or fire-related forest degradation.
With Brazil’s leadership, the momentum of this year’s annual United Nations Climate Change Conference (COP30) taking place in the Amazon, and with effective new satellite monitoring technologies, the TFFF could finally turn forest conservation into an investment that benefits countries, investors and the planet.
Following several years of technical and diplomatic work, Brazil published the latest iteration of the TFFF Concept Note in October 2025. Just weeks before, Brazilian President Luiz Inácio Lula da Silva announced at the UN General Assembly that Brazil would make the first $1 billion investment into the facility, which ultimately is expected to reach $125 billion. A few weeks later, Indonesia announced it would also contribute to the facility, following up just a few days before COP30 is set to begin with a $1 billion commitment. Norway, on the same day, also announced a $3 billion pledge. The TFFF’s success now depends on other nations, as well as private sector investors, to make it a reality at COP30 and beyond.
The Tropical Forest Forever Facility is an innovative fund designed to reward countries for keeping their forests standing. Photo by Teo Tarras/Shutterstock. How Exactly Will the TFFF Be Funded?Unlike most previous international assistance to conserve tropical forests, the TFFF will not be financed by donor grants. Once the facility reaches its $125 billion target (or, likely in the shorter term, a smaller sum), it will be the world’s largest “blended finance” mechanism of its kind, designed to pay eligible, participating tropical forest countries annually for maintaining their deforestation rates below 0.5% per year, as measured by agreed geospatial monitoring standards and systems.
The TFFF will borrow an initial capital base (targeted at $25 billion) from traditional “donor” nations and other countries in a position to invest, such as Brazil and China, and potentially philanthropic foundations, too. These “sponsors” would provide 40-year loans (the facility’s capital), or other comparable investment modalities, at an interest rate comparable to the yield of U.S. Treasury bonds (a 30-year bond is currently less than 5%) and would be the first to take responsibility over any losses in what’s known as a junior position in the debt structure.
This arrangement creates a safety net that enables the fund to raise an additional $100 billion from private, corporate and philanthropic investors. The combined $125 billion would then be invested in fixed income emerging markets and other sovereign and corporate bonds (excluding fossil fuels and other environmentally destructive sectors), which would earn a higher return.
The return is ultimately expected to generate some $3 billion to $4 billion per year — enough to make payments of around $4 per hectare of conserved forest to eligible countries which maintain deforestation rates below 0.5% over the long term. (Even in the short term, with a much lesser sum than $125 billion, the payments generated would still be significant.)
The TFFF governance structure is divided into the Tropical Forest Investment Fund (TFIF), managed by the World Bank under a separate governance structure that would manage the investment fund and determine the availability of funds for forest payments; and the TFFF itself, which would coordinate monitoring and reporting, and distribute forest payments to countries.
Where Would the Money Go?The current TFFF proposal includes 74 UN-listed developing countries that combined are home to more than 1 billion hectares of moist, broadleaf tropical and sub-tropical forests.
The TFFF is not designed to fund countries to reduce their deforestation rates. Rather, it is meant to reward those that already have relatively low deforestation rates, providing a financial incentive to keep their remaining tropical forests standing and prevent any further deforestation. However, if it’s successful, the facility will serve as encouragement for countries with currently high deforestation rates to qualify to join the scheme. A good result would be if countries such as Bolivia, with one of the world’s highest deforestation rates, were able to qualify for TFFF funding in the years to come. The current structure would lead to significant flows of finance to some of the world’s poorest forest countries, including in Africa’s Congo Basin.
The TFFF includes several innovative features focused on where the money should go. The first is that it allows countries to allocate TFFF payments as they see fit on their national policies and programs that, directly or indirectly, contribute to tropical and subtropical forest conservation and forests’ sustainable use. Crucially, the TFFF requires countries to disclose what the funds are used for to ensure transparency and allow for public scrutiny and feedback.
Another striking and positive feature is a provision requiring 20% of payments to go to Indigenous peoples and local communities engaged in tropical forest conservation in eligible countries. This could be the single biggest source of international finance for Indigenous peoples and local communities, so often at the frontline of conservation. This finance could help these communities protect their rights, secure land tenure, tackle illegal mining and criminality, and pursue sustainable alternative livelihoods that are not dependent on clearing areas of forest.
It is also significant because the TFFF is the only such source of funding that could in some instances be accessed directly by Indigenous peoples and local communities — a provision that they have repeatedly asked for, granting these communities decision-making over the use of the funds.
Payments from the TFFF could help protect the rights of Indigenous communities and help them pursue sustainable alternative livelihoods that are not dependent on clearing areas of forest. Photo by Dekaro/iStock. How Will Forests Be Monitored?The TFFF can only succeed if it is built on credible, transparent and operational forest monitoring that relies on satellite data. This requires methods and data that are produced in a way that can be verified, applied consistently through time and comparable across countries. Robust and universally applied technical standards must be established from the outset, not only to ensure credibility but also to build investor confidence that will attract the early capital needed for scale.
A core principle of the TFFF is that participating nations are expected to use their own national forest monitoring systems, provided these systems meet established quality and transparency criteria. For countries without a qualifying national system, a compliant third-party system, such as Global Forest Watch (managed by WRI) or the EU’s Joint Research Center tropical forests platform, may be used. Given this diversity in monitoring approaches, establishing agreed common methodological standards and definitions across all systems will be paramount.
The TFFF also proposes a fixed forest definition to be applied across all participating countries, creating a common basis for how forests are measured and valued. By setting a 20% to 30% canopy density threshold, a 5-meter minimum tree height and by excluding plantations, this definition establishes a solid technical foundation for consistent and comparable measurements.
What’s Still Needed to Launch the TFFF?First, sponsors need to follow Brazil’s and Indonesia’s lead and commit contributions to the initial hoped-for $25 billion tranche of junior capital. If additional sponsors fail to make commitments at COP30, the TFFF may lose momentum in 2026, causing private sector investors to doubt the viability of the model.
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It is therefore vitally important for industrialized nations across the world without tropical forests to make a significant financial commitment to this bold and ambitious idea. The stakes are global: If tropical forests are lost, adaptation costs from the ensuing climate impacts would far exceed these investments. For wealthy nations, investing in the TFFF is not only about justice and responsibility, but also a matter of economic self-interest. Tropical forests are, in addition to being sovereign national assets, a global public good, with a universal responsibility for their protection.
The World Bank Board has agreed to manage the funds as the trustee and interim host of the TFFF and formalized initial arrangements at its October 2025 meeting, which should provide a strong confidence signal for both sponsors and the private sector. But the World Bank will have to move rapidly to establish the TFIF to maintain momentum and move toward an operational phase of the facility.
Once all of that is in place, a key priority will be development of the operations manual that will govern how the TFFF actually works, including work on some of the more difficult technical issues. These include:
Degradation and LeakageNot all forest loss is caused by deforestation. Forest degradation, which plays a major role in carbon loss and ecosystem decline (and often occurs at smaller spatial scales) can also take place.
Currently, the TFFF proposes to only consider fire-damaged areas (using burn scars as a proxy) as indicators of degradation, subsequently reducing payments by a 1:35 discount rate. But other degradation factors, such as selective logging, roadbuilding, mining and some edge effects, can be detected using 30-meter or 10-meter satellite data. Including both fire and non-fire degradation would strengthen the system’s integrity and ensure payments reflect actual forest conditions.
Deforestation “leakage” is another thorny issue: the TFFF focuses on broadleaf tropical and sub-tropical forests, the most important forests globally for both biodiversity and climate change. However, there is worry that this might cause deforestation to move into other biomes not covered by the TFFF — Brazil’s Cerrado and southern Africa’s Miombo woodlands are good examples — without notice or punitive measures. The TFFF seeks to address this by requiring participating countries to monitor and report forest cover changes in non-TFFF forest areas where significant increases in deforestation could trigger additional scrutiny and potential payment holds. Though this is a good conceptual solution, implementation could be complex given, among other issues, the difficulties associated with monitoring deforestation in drier or sparser forest landscapes. More work will be needed to ensure that the TFFF does not simply displace, rather than prevent, forest loss.
Consideration for Indigenous Peoples and Local CommunitiesIt will also be critical to maintain a strong consultative process with civil society and Indigenous communities as the TFFF — particularly its operations manual — is developed and moves toward implementation. Much of civil society is supportive of the TFFF and its efforts to engage Indigenous peoples and local communities; some remain critical and circumspect. There is no formal consensus on the TFFF among the diverse Indigenous peoples’ organizations across the world’s tropical forests. Continuing dialogue, consultation and free, prior and informed consent will therefore be critical in the years ahead.
A home along the Guama River in Belém, Brazil, where COP30 will take place. The TFFF will require that 20% of payments to countries that keep deforestation rates below 0.5% to go to Indigenous peoples and local communities. Photo by RudiErnst/Shutterstock. Developing an Agreed Global Geospatial Monitoring SystemFinally, the credibility and longevity of the TFFF will also depend on the quality and reliability of the geospatial monitoring systems that are used to base decisions on eligibility, standing forest area and deforestation rates. It is only in the past decade that credible, affordable satellite monitoring of forest cover has emerged. And there are no international covenants or treaties designating official satellite monitoring standards or systems.
In developing its monitoring standards, the TFFF should consider:
- Fine-tuning its measurement standards by aligning the standard minimum mapping unit with the pixel resolution of existing, free satellite data archives (30-meters or 10-meters) to provide a more accurate picture of forest dynamics. Using a finer mapping unit, instead of the proposed 1-hectare minimum mapping unit, would also enable more effective monitoring of forest degradation events like logging and associated roadbuilding.
- Ensuring that the monitoring systems that underpin the TFFF’s payment calculations provide open, independently verifiable data; use methods that produce data that are transparent and reproducible; and regularly validate the results using good practice and international reporting guidelines.
- Finally, governance will be critical to help ensure that technical decisions remain evidence based. The TFFF’s operations manual will codify the detailed rules and procedures for monitoring, so its development should include structured opportunities for expert and stakeholder input.
In short, there is a clear pathway: strong technical standards, robust degradation monitoring, validation, open data and shared governance. The technology is ready; what is needed now is collective agreement to put it into practice.
The TFFF’s Critical Contribution to the Global Forest ChallengeIn summary, the TFFF could make a potentially critical contribution to addressing the world’s forest challenges, which are so closely linked to the biodiversity and climate crises we face. But, as the TFFF proponents themselves have noted, it is not a panacea; other forms of finance will also be needed, and of course there are many other dimensions of tackling tropical forest loss, including governance, legality, regulation, demand and consumption shifts.
The TFFF also inherently faces risks in a volatile world where the future of economies and markets cannot be predicted; it is a bold idea at a time of volatility and instability. But after more than 30 years of forest conservation, forest finance commitments and arrangements that have yet to turn the tide, the TFFF presents an ambitious idea from a major rainforest country that has real potential to make a potentially transformative impact in conserving tropical forests.
It is therefore a pressing global imperative for the international community to contribute generously to its success, starting at COP30, in the heart of the Amazon rainforest — a tropical rainforest, like others, on which the future well-being of humanity so profoundly depends.
This article was originally published on Oct. 27, 2025. It was updated on Nov. 6, 2025, to reflect the latest news and information.
tfff-fisherman-tropical-forests.jpg Forests COP30 deforestation forest monitoring conservation Type Explainer Exclude From Blog Feed? 0 Projects Authors Charles (Chip) Barber Edward Davey Viviana Zalles Mariana OliveiraSmall Wind Can Bring Big Benefits to Communities in Need
Much of the conversation around wind power often focuses on large-scale utility wind farms that provide energy to power grids deployed across cities, regions and even countries. Yet, smaller wind solutions can play a very important role in the clean energy transition.
In places where solar and other renewable technologies are not technically or economically feasible, small wind projects are a cost-effective option that can help power individual homes, schools and health facilities, or provide reliable and affordable electricity to entire communities. They can also support water pumping for irrigation, telecommunications and small businesses.
For example, two small wind energy systems installed in the tribal villages of Kamalaguda and Tijmali in the Kalahandi district of Odisha, India, not just provide electricity to 60 homes and 259 people, but brought jobs and new skills to the community.
Across the world, 11 miles off the coast of Maine, the Fox Islands community has installed three 1.5 megawatt turbines to power their homes and businesses. During the first 14 years of the project, local residents saved around $1.3 million in electricity costs.
Currently valued at $1.6 billion in 2024, the global small wind turbine market is expected to grow over the next five years, reaching $2.2 billion by 2030.
What Is Small Wind?Wind energy systems that are not utility-scale wind farms, generating large amounts of electricity that feed into the electrical grid, are generally known as “small wind.” Sometimes categorized as small wind turbines (SWTs) or distributed wind, it represents an adaptable and flexible option for generating renewable electricity by converting wind energy into electricity using the aerodynamic force from rotor blades.
There isn’t a universally defined energy-generation capacity for small wind across all countries. In India, for example, small wind describes wind turbines with blades less than or equal to 200 square meters that generally have a maximum power rating of 50 kilowatts (kW). As the technology becomes more familiar worldwide, some SWTs now include higher-capacity models, ranging from 50 kW to 100 kW.
In the United States, however, small wind turbines are typically up to 100 kW in size to account for the advancement in wind technologies. It’s also often described as “distributed wind” to emphasize that the power these turbines produce is consumed in the same place as it is produced.
Ultimately, small wind differs from large utility-scale wind turbines in terms of size, capacity, and operational complexity, while also being considerably easier to install and operate. This makes it a great option for geographies with high wind potential, space constraints, limited or unreliable grid infrastructure, or high electricity costs from diesel or imported fuels.
Where Is Small Wind Most Valuable?Communities are increasingly turning to small wind to produce their own energy, especially where grid reliability, rising electricity costs or supply disruptions are a concern. The technology is most common in rural or remote areas, where it not only powers homes but also supports farming tasks like pumping water or grinding grain.
While small wind is not always suitable, there are a few noteworthy contexts in which it may play a pivotal role in diversifying energy sources and helping communities achieve greater energy independence.
Agricultural and Rural CommunitiesAgricultural and rural communities have had a lot of success with small wind due to the relatively small physical footprint of the turbine technology. Small wind energy systems have often proved to be an efficient use of space for the amount of electricity it can generate. One community organization in San Benito County, California is currently exploring ways to work with local zoning and land-use officials to allow for the deployment of small wind turbines on agricultural land. Along with an agrivoltaics project, which simultaneously uses land for agriculture and solar power, and a workforce development program, the organization’s proposal will help educate other community members and strengthen both the economic and grid resilience in the region.
In communities where it’s already legal for distributed wind installations, agricultural and industrial property owners can successfully offset their high energy usage and minimize disruptions to operations during power outages. An Anheuser-Busch brewery in California, which has a hybrid wind and solar system, and a 2.5 MW wind system on a farm in Nebraska, is already proving this success. Turbines in both locations are offsetting electricity demand to ensure the electricity used is both cleaner and cheaper than the general grid mix.
As small wind gains traction on farms and industrial facilities, even more rural communities have begun seeing it as an opportunity to gain control over their energy production. Communities like Ford County, Kansas, have built at least seven utility-scale wind projects in the last few decades that is transports electricity through nearby transmission lines to power other communities. But now, Ford County is modifying their zoning codes to include small wind and exploring municipal procurement so they too can utilize their exceptional wind resource and support energy independence for local farmers, businesses and residents.
Remote CommunitiesRemote communities are also looking to small wind for energy independence and freedom from unstable energy costs. Due to their heavy reliance on diesel generators and long-distance power lines, many communities in Alaska are exploring small wind as a solution. After installation, wind power has very low operating costs and can be cheaper than importing fuel. Highly successful projects, like the Winds of St. Mary’s in Alaska or Maine’s Fox Islands, have inspired other remote communities to engage technical experts and explore the potential of small wind in lowering steep energy costs.
Around the Horn of Africa, small wind systems have become the most viable solution in the scarcely electrified parts of those countries. South Africa has more than 100,000 small wind turbines directly coupled with water pumps in operation across 46,000 farms. A study from the UK suggested a 6 kW turbine is able to supply approximately 7.1% of the current electricity demand of a primary school in Isle of Arran, UK.
Small wind can bring power to remote areas like this desert in Rajasthan, India, on the border with Pakistan. Photo by Donyanedomam/iStock. Climate-Conscious CommunitiesClimate-conscious communities, which are seeking solutions to minimize their reliance on fossil fuels and meet clean energy goals like Bennington County in Vermont, are also actively putting rules in place to reduce soft costs — or any non-hardware costs of distributed wind deployment — and other barriers to small wind deployment. By following the lead of previous examples, such as the Huerfano River Wind Farm in San Isabel, Colo., these communities are pursuing multiple goals: helping residents control energy costs, enhancing local quality of life and supporting local climate ambitions.
What are the Barriers and Opportunities for Small Wind Projects?Just as momentum is starting to build and the industry has begun to see some success, small wind is facing some challenges. Issues like limited resource mapping studies, maintenance issues, lack of standardization and quality control, limited awareness and business models, challenges in testing and certifications have hindered its growth.
In the U.S., for example, federal support has wavered since the beginning of the Trump administration and the recent elimination of federal tax credits that will severely impact the economic viability of new turbines and hybrid systems.
The industry does not have many workers trained in small wind installations and service, thus making new installations and servicing challenging, particularly in rural areas or new markets. And even where there is a strong enough wind resource and an installer willing to make the trek to build the turbine, the local permitting processes might be restrictive. All of these factors add to the final cost and limit the economic viability of small wind turbines.
In other countries, like India, higher capital costs compared to alternatives have found to be a challenge as policies and incentives have shifted toward solar energy.
Small wind in India typically costs between 80,000 rupees to 1 million rupees ($906 to $1,133) per kilowatt, whereas a 1 kW solar rooftop system costs around 40,000 rupees to 70,000 rupees ($453 to $793). This cost disparity is primarily due to the lack of economies of scale in manufacturing, expensive materials like rare earth magnets and the technical complexities involved in turbine production, installation and maintenance. The cessation of subsidies after 2017 further raised their effective price, making them less competitive compared to rapidly declining solar photovoltaic costs.
Yet with lower operating voltages, compatibility with hybrid systems and suitability for community- or household-level use, small wind still can be promising for rural and off-grid situations where localized, safe and easy-to-maintain solutions are critical.
To help counter some of these barriers, local government officials can pull a range of levers to encourage more growth of small wind projects. Staff might install a wind turbine on municipal property, work together with local utilities to reduce barriers to interconnection, or develop educational resources for residents seeking clean energy opportunities. An increasingly common action that governments might take is to streamline their permitting processes for small wind. Reducing the soft costs associated with the deployment of small wind turbines can lead to increased interest in the technology from local installers, residents, and other stakeholders.
Local government staff can also review zoning code and existing permitting processes to identify potential barriers to wind development, highlight areas for improvement, educate relevant staff on best practices, and, most importantly, communicate with local stakeholders to understand the community’s level of support for future small wind deployment. With robust public input, local governments can build a strong foundation for future small wind development in their community.
Unlocking Small Wind’s PotentialSmall wind turbines may not be the perfect solution for every scenario, but there are many instances where they can play a role in scaling up deployment of renewable energy.
Scaling-Up Small Wind Turbines in India
To unlock the full potential of small wind projects, WRI India produced a study that highlights the need for better resource mapping; collaboration; support and interest from policymakers; technical improvements and standardization; and more.
These systems have brought reliable power, supported livelihoods and built local workforce capacity. As a standalone unit or as part of hybrid systems, small wind offers a flexible, decentralized solution, especially in areas where land is limited or there are issues preventing large renewable installations. Small wind can also increase energy access to more people around the world and provide greater ownership over energy production at the same time.
Correction: An earlier version of this article misstated the value of the global wind turbine market and the high-capacity value range of small wind turbines. Both have been corrected.
small-wind.jpg Energy Clean Energy U.S. Climate Policy-Clean Power renewable energy Type Explainer Exclude From Blog Feed? 0 Projects Authors Abhishek Bhardwaj Andrew Light Lilyana Gabrielse Vaisakh Suresh KumarHow to Reach $300 Billion — and the Full $1.3 Trillion — Under the New Climate Finance Goal
Nations set a new climate finance goal last year, committing to deliver at least $300 billion annually for developing countries' climate action by 2035. Developed nations agreed to take the lead in meeting this target.
The goal, known as the "new collective quantified goal," or "NCQG," also includes a much larger target. It calls on all actors to work toward mobilizing $1.3 trillion in international climate finance over the same timeframe; much closer to the amount developing countries truly need.
This finance, alongside their domestic finance, is essential for developing countries to adopt low-carbon technologies, protect themselves from climate threats and unleash green development. But it doesn't benefit only them: Stronger action in the developing world is needed to halt climate change and invest in sustainable growth globally. It's about building a safer and more prosperous future for everyone.
The recently released Baku-to-Belém Roadmap is the first big step toward operationalizing the NCQG. The roadmap fills in some key details about the path forward, helping to move conversations — especially those at this year's UN climate summit (COP30) in Belém, Brazil — from commitments to delivery.
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We delved into the new finance goal, including what it could take to reach the $300 billion threshold — and what moving beyond it, toward $1.3 trillion, might look like.
Is the New Climate Finance Goal Enough?The NCQG's $300 billion target is the largest climate finance commitment countries have ever agreed to and represents an important down payment for climate action. Meeting it will be a critical milestone. But finance cannot stop there.
The High Level Expert Group on Climate Finance (IHLEG) estimates developing countries (excluding China) need to spend $2.7 trillion annually by 2030 to meet climate and nature-related goals. $1.4 trillion of this would come from domestic sources and $1.3 trillion from abroad.
$1.3 trillion is therefore a more accurate reflection of developing countries' needs by 2035, and so the more important target. But of course, it is the much larger hill to climb. Important, too, is understanding how and where funds are likely to flow.
Is $300 Billion Achievable?In short, yes. Though current political headwinds make it more difficult, achieving the goal remains possible.
In 2022, the latest data available, developed countries delivered around $116 billion to developing countries for climate action. This exceeded the previous climate finance goal of $100 billion annually, which the NCQG replaces. We reviewed the sources of this finance, looking at how funding trends are likely to grow over the next decade, and found that $300 billion by 2035 is very much in reach.
How this money is raised, though, could have implications for the type of finance made available and who can access it most easily.
Where Would the Money Come From?We can generally assume that similar types of finance will be counted toward the $300 billion goal as were counted toward the $100 billion goal. This would include bilateral finance (country to country), multilateral finance (such as from multilateral development banks (MDBs) and multilateral climate funds), and private finance mobilized by public funds. Under the NCQG, there's also a possibility to count "alternative sources" of climate finance, such as international taxes or rechanneled IMF "special drawing rights" (a type of international reserve asset).
Moving beyond $300 billion, toward $1.3 trillion, will require much more private investment in climate action than we've seen to date in addition to increases from the sources above.
Public multilateral finance is the biggest sourcePublic multilateral finance involves public funds going from one country to another through a multilateral entity, like a development bank. This category represents the highest share of international climate finance so far — $51 billion of the $116 billion delivered in 2022 — and will likely continue to do so.
Multilateral development banks
MDBs like the World Bank provide a significant portion of international climate finance, and there are many ideas on the table for how to further supercharge their efforts.
At COP29, MDBs committed to providing $120 billion in climate finance to low- and middle-income countries by 2030; roughly double what they provided in 2022. Part of this growth is likely intended to come from an increase in the percentage of their funding going to climate action. And part will come from continued growth in total MDB finance, largely as a result of reforms to free up capital.
Additional growth is possible — especially if countries pay in more capital, increasing the base amount against which MDBs can lend. While such increases may be unlikely today with current political dynamics, they could feasibly happen before 2035. The IHLEG estimates that $60 billion in capital increases over a ten-year period could bring MDB climate and nature-related finance up to around $240 billion per year. This figure refers to growth across the entire MDB system, encompassing a range of banks and funds with varied shareholder structures.
Some of the increase in MDB climate finance will also come from a change in the way their contributions are counted. Under the $100 billion goal, only 70% of MDB's total climate finance was included in the tally. This is because not all countries channeling climate finance through MDBs were considered contributors to the goal. But any country can voluntarily contribute to the $300 billion — meaning potentially all climate finance flowing from MDBs to low- and middle-income countries could be counted.
If MDBs meet their 2030 target of $120 billion, this would comprise 40% of the $300 billion goal. This is around the same percentage the MDBs provided toward the $100 billion goal in 2022 (41%). If they could reach $240 billion, per the IHLEG's estimate, this would cover 80%.
People navigate heavily flooded streets in Sylhet, Bangladesh in June 2024. International climate finance helps countries build resilience to and cope with the aftermath of worsening disasters. Photo by H M Shahidul Islam/iStockPrivate finance mobilized by MDBs
MDBs also announced that they would leverage $65 billion in private finance for climate action in developing countries by 2030, up from around $15 billion in 2022. There are a variety of ways they can do this, such as offering guarantees or insurance on climate projects to lower risks and attract private investors.
The $65 billion assumes that MDBs can leverage 54 cents in private finance for every $1 they spend (a mobilization ratio of 1:0.54) and meet their $120 billion goal. For comparison, they mobilized 38 cents per dollar spent in 2023 (a 1:0.38 ratio).
If MDBs deliver $240 billion in climate finance by 2030, they could mobilize as much as $91-$130 billion annually in private funds (reflecting a 1:0.38 and 1:0.54 ratio, respectively).
Multilateral climate funds
Multilateral climate funds, such as the Green Climate Fund and Adaptation Fund, are specifically dedicated to providing climate finance in developing nations and are financed primarily through governments pledges. Historically they've made up a very small proportion of international climate finance: just $3.4 billion (3%) in 2022, down from $4.2 billion in 2021.
Despite their modest size, the climate funds are valued by many for allowing direct access to developing country institutions. They also provide a higher rate of grants and highly concessional financing (loans with more favorable terms) than other sources. Between 2016 and 2022, 54% of finance from the climate funds came in the form of grants, compared to 39% of bilateral finance and 9% for the MDBs.
At the 2024 UN climate summit (COP29), countries agreed to at least triple the amount these funds disburse by 2030. This would require wealthy countries to significantly increase their contributions. If tripled, the funds would provide around $10 billion annually by 2030, or less than 4% of the $300 billion, with additional growth possible by 2035.
Public bilateral finance has grown, but faces political headwindsBilateral finance involves public funds directed from one country to another. In 2022, bilateral finance accounted for $41 billion (35%) of the $116 billion provided and mobilized.
The amount of bilateral finance needed will hinge on what other sources deliver:
- If MDBs reach their stated target of $120 billion and mobilize $65 billion in private finance, and if the multilateral climate funds cover $10 billion, this leaves a gap of $105 billion for bilateral institutions to fill.
- If MDB finance instead reaches the higher estimate of $240 billion, at current private sector mobilization rates, we could exceed the $300 billion target without any bilateral funds.
Bilateral climate finance doubled between 2013 and 2022, from $22.5 billion to $41 billion. If another doubling occurs by 2035, as called for by the IHLEG, bilateral finance would reach around $80 billion. But there's no guarantee of this: With strong political headwinds against international climate and development finance in many developed nations, significant growth in bilateral finance may be challenging — though the ten-year window leaves room for political cycles to turn.
Economic growth can help increase overseas development assistance to a degree, especially in countries like Denmark, where it is tied to gross national income (GNI). If we assume increases in bilateral finances of just 2% to follow an estimated 2% annual growth in GNI, it will reach a relatively modest $53 billion by 2035. It is also possible that some developing nations will increase and voluntarily report finance as part of the efforts to reach $300 billion.
Private finance mobilized by bilateral public finance
In 2022, developed countries reported that they mobilized $9.2 billion in private finance for climate action in developing countries. With bilateral finance reaching $41 billion that year, this implies a mobilization ratio of 22 cents per dollar spent.
Unlike the MDBs, countries have not stated a new target for mobilized private finance. If we assume bilateral finance reaches $53 billion in 2035 (a 2% annual growth rate), the same rate of mobilization as in 2022 would result in $11.7 billion by 2035. If bilateral finance were to double to $80 billion by 2035, the same mobilization rate could leverage $17.6 billion in private finance.
Solar-powered chargers for electric motorbikes in Kigali, Rwanda. Climate finance supports green projects that can help developing countries improve lives and sustainably grow their economies. Photo by IMF Photo/Kim Haughton/Flickr Alternative sources can now be counted, tooIn addition to multilateral and bilateral finance, the NCQG recognizes "alternative sources" — such as international taxes or solidarity levies — as a potential option for raising finance toward the $300 billion goal.
Some experts have suggested a tax on international flights, applied to airlines based on greenhouse gas emissions, or wealth taxes as ways to raise finance for climate action. These measures are attractive in part because they could introduce entirely new funding streams. The IMF estimates that a carbon tax on international transportation emissions could bring in up to $200 billion per year, which could then in theory be disbursed as international climate finance.
Another option is rechanneling the IMF's special drawing rights, which are a type of international reserve. In 2022, nations with larger economies agreed to reallocate special drawing rights to developing countries. So far, this has resulted in around $40 billion in finance being distributed through the Resilience and Sustainability Trust, which mainly helps low-income and vulnerable middle-income countries tackle climate risks. Countries have also agreed to re-channel special drawing rights through MDBs and use them as hybrid capital. Moving forward, countries could agree to reallocate additional special drawing rights and modernize the framework to allow for more regular issuances — though governments currently appear reluctant to take this step.
High integrity, well-managed carbon markets also channel funds for developing nations' climate action, in theory. But the idea of counting these investments toward the NCQG is highly controversial, since any emissions reductions are claimed by the buyer (meaning they don't count toward the developing country's own climate goals). Governments have agreed that the Adaptation Fund (one of the climate funds) will receive a 5% share of proceeds under the Paris Agreement's international carbon crediting mechanism. But it remains to be seen whether this will count toward the $300 billion goal.
How Will Finance Be Delivered?The NCQG is not just about the amount of finance developing countries receive, but also the type.
How finance is delivered matters immensely. Many of the poorest countries are already struggling with unsustainably high debt levels and cannot afford to take on new, high-interest-rate loans, even for climate projects which can aid their growth and reduce risks. They may require a higher proportion of grants or highly concessional funding — meaning loans with, for example, low interest rates and/or longer repayment periods. (This can be useful in the context of a more systematic approach to debt restructuring and relief.) In other countries, and in sectors where an economic or financial return is expected, loans and private finance can be a more appropriate investment type.
While the NCQG noted that grant-based and highly concessional finance is particularly important "for adaptation and responding to loss and damage in developing countries," it fell short of setting concrete targets for this.
In 2022, around 39% of bilateral and 9% of multilateral climate finance came in the form of grants, which mainly went to low-income countries. Between 2016 and 2022 these countries received 64% of their climate finance in grants, compared to around 12% for middle-income countries.
Going forward, even maintaining the current percentage of climate finance that is provided as grants or highly concessional finance will require concerted effort. Much of the growth in MDB finance, for example, is likely to come from reforms and capital increases that tend to boost lending to middle-income countries, not grants to low-income countries.
Similarly, if a larger portion of the $300 billion comes from mobilized private finance — as predicted by the MDBs — this will tend to flow through private loans or equity investments, not grants or highly concessional finance.
Who Will Receive the Funds?International climate finance is meant exclusively for developing countries, but this is a broad and diverse group of nations. Who exactly will receive finance, and how much, was not laid out in the NCQG — though the final text did recognize that small island developing states and least developed countries are particularly in need of assistance, especially for adaptation and loss and damage.
In 2022, lower-middle income countries received 46.5% of reported climate finance, upper middle-income countries received 34.5%, and low-income countries received just 11.1%. A small number of high-income countries received 3.4% of the financing, and 20.4% of the funds were not allocated by income group. (Some developing countries classified as high-income may receive investments because they are highly vulnerable to the effects of climate change, such as small island states like Antigua and Barbuda and Barbados.)
Although climate finance approximately doubled between 2016 and 2022, its distribution across these income groups has stayed relatively constant. But major shifts in funding sources could potentially upend precedent. For example, if the growth in MDB finance is largely through non-concessional loans, this will tend to favor middle income rather than low-income countries. The same is true of mobilized private finance if it ends up playing a larger role. Only 3% of mobilized private finance counted in 2022 went to low-income countries.
Ultimately, the overall percentage of finance received is less important than how favorable the rates and terms are — or the share of finance on "grant equivalent" terms (meaning the amount that would have been provided if the finance was a grant, before taxes or other charges). Middle income countries will likely continue to receive the most finance overall, given the size and relative strength of their economies and the larger ticket sizes of low carbon investments there. What is important is that the lowest income and most vulnerable countries receive a good share of the grant and highly concessional finance, especially for adaptation and loss and damage.
How Do We Move from $300 Billion to $1.3 Trillion — the Real Target?While $300 billion should be within reach, the real challenge will be how to scale up finance "from all public and private sources to at least $1.3 trillion per year by 2035" — the truer measure of what developing countries need.
Clearly, meeting the $1.3 trillion target will be a steep climb. Funding will need to come from the same sources listed above, as well as private financial flows not mobilized by public funds. The latest IHLEG report suggests that around half of the $1.3 trillion, or $650 billion, will come from cross-border private finance and the other half from international public funds.
Raising that amount of public funding will require much more ambition from wealthy nations and significant capital increases at the MDBs. In addition, countries will likely need to forge new international actions and agreements to leverage "alternative" sources of finance like international taxes, with a significant proportion of the funds dedicated to climate action in developing nations.
Growing private finance will also be a challenging — but vital — feat. While current data on cross-border climate investment in developing countries is limited, and estimates vary, $650 billion is almost certainly a massive leap from the present. Climate Policy Initiative (CPI) estimates that private climate finance to developing nations (excluding China) reached around $15 billion in 2022. UN Trade and Development (UNCTAD) estimates that foreign private investments just in renewable energy in least-developed countries reached $16 billion that same year.
Workers from a German-Filipino solar energy company install panels at a house in Quezon City, Philippines. International climate finance is an important source of funds for renewable energy and other green projects in low- and middle-income countries. Photo by IMF Photo/Lisa Marie David/FlickrSubstantially increasing private finance for developing nations will require efforts from high-, middle-, and low-income countries alike. Governments wanting to attract private sector investment need to set ambitious targets and transition plans, enhance investment environments, and work together with the private sector to develop investment opportunities and shift risk perceptions. From the financier side, it will be important to drive forward measures such as scaling up and replicating effective risk sharing and credit enhancement mechanisms, tapping into long term institutional investment, and increasing the role of national development banks and local currency.
"Country platforms" which bring public, private, domestic and international finance together behind green transition plans and policies, can play a role in mobilizing private finance and ensuring an efficient capital stack.
How Will Progress Be Measured?Countries have decided to adopt the enhanced transparency framework under the UN Framework Convention on Climate Change (UNFCCC) as the transparency system for the new finance goal. Through this system, countries will report on the finance they provide and receive and what it's used for. In addition, the UNFCCC's Standing Committee on Finance will prepare a "collective progress" report biennially to reflect on progress to date, drawing on a variety of sources.
But questions remain; particularly around how the $1.3 trillion target will be monitored, as it covers an array of funding sources that will not be reported through the UNFCCC system. Additional reporting and review of this — particularly in fora such as the G20, where Finance Ministers and Financial Institutions are present — will be important.
Charting a Path ForwardThe NCQG represents an important — possibly transformative — step toward a safer and more sustainable future. But this hinges on how it's executed.
$300 billion is within arm's reach, as long as MDBs continue along their reform path and countries maintain their contributions. The important remaining question is how to ensure that the right funds are matched to resource needs and finance reaches those who need it most.
But where countries should truly be setting their sights is the full $1.3 trillion. This should be a guiding star as we head toward 2035, as it's not only the better measure of need, but also the true ambition the climate crisis demands.
While we have until 2035 to reach the finance targets agreed in Baku, the work must begin now.
Several international summits this year helped build momentum around the new goal:
- At the Finance in Common Summit in February, public development banks recognized the critical role they play in operationalizing the NCQG.
- In June, many leaders from governments, development finance institutions, civil society organizations and elsewhere gathered at the International Conference for Finance for Development, held once a decade. Here, these players recommitted to bolstering finance for sustainable development, emphasizing the need for collaboration to mobilize climate finance at scale.
- At the BRICS summit in July, Brazil, Russia, India, China and South Africa united behind calls for strengthened climate finance, including scaling up finance for climate adaptation.
Two more critical opportunities still remain to make headway in 2025:
- At the 2025 UN climate summit (COP30) in November, the Baku-to-Belém roadmap will provide a foundation for discussions on the $1.3 trillion target. At COP30, attendees could help build confidence that this roadmap is achievable by announcing new efforts to mobilize finance at scale, such as country platforms, finance commitments from the private sector and progress toward establishing solidarity levies.
- Leaders at the G20 summit, held immediately after COP30, could use this opportunity to lay out how to overcome economic hurdles faced by developing nations, including unsustainable debt and high costs of capital, that put the brakes on climate investments.
Leaders should capitalize on this momentum and use their time at COP30 and the G20 to chart a path forward, overcome headwinds, and ultimately deliver the finance the world needs to confront the climate crisis.
Editor's note: This article was originally published in February 2025. It was updated in November 2025 to reflect developments from recent high-level discussions and the release of the Baku-to-Belém roadmap.
solar-farm-valenzuela.jpg Finance Finance climate finance low carbon development multilateral development banks international climate policy COP30 Type Explainer Exclude From Blog Feed? 0 Projects Authors Natalia Alayza Gaia LarsenSTATEMENT: EU Environment Ministers Back 2040 Emission Goal, but Plan To Reach It Remains Unclear
BRUSSELS (November 5, 2025) - Today, the EU Council reaffirmed the bloc’s goal to cut greenhouse gas emissions by 90% by 2040, compared to 1990 levels. While this underscores Europe’s long-term ambition, up to 5% of the reductions are expected to come from carbon offsets outside the EU, with an agreement to periodically review the plan.
The EU ministers also confirmed the European Commission’s earlier “statement of intent” for the 2035 nationally determined contribution (NDC) to reduce emissions by 66.25–72.5% from 1990 levels. The NDC will be a key input into the COP30 climate summit in Brazil next week.
Following is a statement by Stientje van Veldhoven, Vice President and Regional Director for Europe, World Resources Institute:
“The EU’s 90% target reflects the level of ambition this moment demands and stands out as one of the most ambitious commitments in the world. Finalizing it just ahead of COP30 shows that the bloc is determined to arrive at the summit with a serious contribution to tackling the climate crisis, and signals that it recognizes climate action as central to Europe's economic future.”
“Europe’s climate competitiveness and energy independence will not be secured through hesitation or outsourcing. Keeping the door open to revising climate measures creates uncertainty for businesses that need long-term investment security. The announcement to revise and postpone the EU's Emissions Trading System (ETS-2), while leaving open the possibility of additional offsets, adds to this unpredictability. The exact way these provisions will be applied will determine the EU's actual speed of transition.”
“The EU’s 2035 target is a solid step toward reaching its longer-term climate goals, but only if the bloc strives for the highest end of its target. WRI analysis shows the EU must cut emissions by 72.5% to stay on track for 1.5°C. It would also allow for a smoother emissions reduction towards the 90% goal, rather than relying on steeps cuts after 2035. Falling short would create an unmanageable gap and would undermine investor confidence in Europe’s long-term transition.
“By phasing out fossil fuels and investing in clean energy and innovation, the EU can cut energy dependence and build a more resilient domestic economy in an increasingly volatile world. Any use of carbon credits requires strong guardrails to ensure they meet robust social and environmental standards, are fully transparent, and truly deliver additional emission cuts.
“The EU must come to COP30 ready to deliver — with the tools, commitments, and measures needed to turn ambition into action and push other countries to advance ambitious plans as well.”
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New commitments at the COP30 Local Leaders Forum aim to bridge local and national climate strategies and boost implementation
RIO DE JANEIRO (November 5, 2025) — The COP30 Local Leaders Forum in Rio de Janeiro, held ahead of this year's UN climate conference in Belém, concluded today with national and subnational leaders making bold new commitments to strengthen city- and state-level climate action while advancing the Coalition for High Ambition Multi-Level Partnerships (CHAMP), a group of 77 countries committed to greater multilevel cooperation in developing national climate plans.
Cities are responsible for 70% of global energy-related CO2 emissions and over 60% of global energy use. Bold urban climate action can sharply cut emissions while simultaneously driving economic growth, creating jobs and improving quality of life. Yet, despite long-standing recognition of their importance, subnational climate strategies have often remained disconnected from national climate plans.
At the COP30 Local Leaders Forum, World Resources Institute (WRI), Bloomberg Philanthropies and Brazil’s Ministry of Cities convened more than a dozen ministers, mayors and governors from CHAMP countries — which together represent 65% of global GDP and 37% of emissions — to share lessons learned and accelerate implementation. The resulting commitments aim to close the gap between local initiatives and national strategies, by institutionalizing support across all levels of governance.
Michael R. Bloomberg, UN Secretary-General’s Special Envoy on Climate Ambition and Solutions and Founder of Bloomberg L.P. and Bloomberg Philanthropies, announced a $168-million commitment from Bloomberg Philanthropies to usher in the next era of local climate leadership and multilevel collaboration.
“Mayors and governors are showing the world that cities and states can lead the way when it comes to fighting climate change,” said Bloomberg. “This investment will unlock new opportunities for leaders — in Brazil and around the world — as they partner with national governments, scale data-driven, proven solutions that cut emissions, and build a stronger and healthier world.”
Through this support, WRI will deepen its role in CHAMP, strengthening governance structures, expanding in-country partnerships and helping cities, states and regions deliver impact at scale.
“Local leaders are frontrunners in delivering solutions that both cut emissions and improve lives today,” said Ani Dasgupta, President and CEO of World Resources Institute. “When cities work hand in hand with regional and national governments — as we’re seeing in Brazil and around the world — their impact multiplies. By building on what works, we can turn local progress into lasting change that powers a more just, thriving and sustainable global economy.”
In Brazil, WRI Brasil will partner with C40 Cities, the Global Covenant of Mayors for Climate and Energy, the National Front of Mayors (FNP), and government, multilateral and private sector partners, to help make the country a global model of climate federalism, supported by robust finance mechanisms to unlock mitigation and adaptation projects at the local level.
Building on these efforts, Bloomberg Philanthropies, in partnership with the Mitigation Action Facility, WRI Brasil, Brazil's Ministry of Cities, Ministry of Environment and Climate Change, and BTG Pactual, announced the creation of a 80-million-euro ($93-million) E-Bus Credit Enhancement Fund for Brazil, expected to unlock financing for more than 1,700 electric buses.
“Almost 90% of public transport in Brazil relies on city buses,” said Luis Antonio Lindau, Director of WRI Brasil Ross Center for Sustainable Cities. “Transitioning them to electric models is essential to improving quality of life for millions of citizens and helping the country get on track toward net-zero by 2050. As countries and financial institutions move from commitments to action, blended finance mechanisms like this credit enhancement fund are key to making electric mobility a reality.”
To date, CHAMP countries have submitted 50% of all new national climate commitments, or Nationally Determined Contributions (NDCs), ahead of COP30, part of a broader wave of national-local collaboration reshaping the global climate process. COP28 in Dubai and COP29 in Baku both had more formal roles for mayors and governors, and COP30's Urban Ministerial on Urbanization and Climate Change will serve as a central platform to advance enhanced NDCs, improved finance flows, affordable and resilient housing, and inclusive economic transformation.
“Climate action works best when it starts locally, where it touches people’s daily lives,” said Rogier van den Berg, Global Director for WRI Ross Center for Sustainable Cities. “When cities and national governments align, they can deliver real change — for people, for nature and for the climate. Innovative local approaches can drive national policy and inspire solutions around the world.”
In the year ahead, WRI will continue helping governments convert climate commitments into action, mobilize financing and strengthen local leadership — turning local solutions into global impact.
About World Resources Institute
WRI works to improve people’s lives, protect and restore nature and stabilize the climate. As an independent research organization, we leverage our data, expertise and global reach to influence policy and catalyze change across systems like food, land and water; energy; and cities. Our 2,000+ staff work on the ground in more than a dozen focus countries and with partners in over 50 nations.
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STATEMENT: Baku to Belém Roadmap Lays Out Pathway to Scale Climate Finance
BELÉM (November 5, 2025) —Today, the COP presidencies of Azerbaijan and Brazil published the Baku to Belém Roadmap to $1.3T. This report represents a key output agreed to at COP29, detailing how to deliver $1.3 trillion annually for developing countries from all international sources by 2035.
The Baku to Belém Roadmap presents numerous options for increasing investment in climate to reach this scale. Delivering on this will be critical for COP30’s focus on moving from commitments to action.
Following is a statement from Melanie Robinson, Global Director of Climate, Economics and Finance at World Resources Institute:
“The Baku to Belém Roadmap turns a promise made at COP29 into a plan. It charts a smart, holistic strategy to deliver $1.3 trillion a year in climate finance for developing countries, and start transforming the global economy, starting now.
“The roadmap’s value is in its combination of pragmatism with a focus on scale and systems change. For too long, the climate community has been overly focused on relatively modest sums of public climate funding, whereas the Baku to Belém plan rightly shifts the lens to how a wider set of public finance and policy shifts can unlock much larger flows from private investors.
“As Brazil and Azerbaijan rightly note, tackling the climate crisis means rewiring the financial system so that all actors pull in the same direction, from development banks and private capital providers to public policy makers and financial regulators. Thanks to input from the Circle of Finance Ministers, the roadmap is grounded in tackling the real-world challenges that finance ministers and other financial actors face. As the economic case grows ever clearer, this is exactly what’s needed to drive large-scale investment in clean energy, resilient agriculture and adaptation — creating jobs, strengthening economies and reducing risk.
“With this roadmap in hand, COP30 must pivot from plans on paper to investment at scale. Success in Belém will depend on whether all sources of finance can work together to align behind country-led priorities, and whether scarce grants go where they are needed most. The roadmap shows how to reach $1.3 trillion — now the world must deliver.”
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Building Better Climate Initiatives: 7 Essential Ingredients for Effective Intergovernmental Cooperation
The number of cooperative initiatives aimed at combating climate change has ballooned over the past decade. Since the Paris Agreement, governments have launched hundreds of pledges and coalitions to tackle everything from renewable energy, zero-emissions transport and methane, to forests, food systems and adaptation. As the number of joint announcements and initiatives grows, so too do expectations that these efforts can close the ambition and implementation gaps left by slower-moving formal negotiations.
Cooperative initiatives are critical because they bring together "coalitions of the willing" to tackle specific challenges that can be hard to address through multilateral negotiating processes — especially in areas where it has not been possible to reach consensus on ambitious goals (such as setting specific global decarbonization targets). By focusing on specific sectors, activities and approaches, these initiatives have the potential to spur change and strengthen collaboration across borders, providing a much-needed dimension to international climate governance. They can bring momentum to multi-country efforts that, in turn, drive domestic climate action — where change is most needed and impactful.
Yet the effectiveness of these efforts has been questioned at times. Some initiatives may generate political visibility at launch, but the political and media attention they garner do not guarantee that they will deliver measurable outcomes. Other initiatives may duplicate existing efforts or fail to attract the actors most essential to driving progress. Without greater intentionality in how initiatives are designed, governed and assessed, the growing landscape of climate cooperation risks dilution rather than delivery.
Based on recent WRI research and lessons from the past decade, the following seven elements offer a practical framework for building coalitions that can catalyze national action, drive international cooperation and spur systemic change over time. This provides a guide that stakeholders, including governments and initiatives themselves, can use to develop, build and carry out effective collaboration for climate action.
1) Identify a Clear Need and Opportunity for ImpactInitiatives should begin with a clearly defined purpose rooted in a real gap or opportunity. That means identifying whether they address a sectoral gap; a regional need; or a missing governance function, such as standard-setting, implementation support or finance mobilization. If initiatives do not first assess their role and added value within the existing ecosystem of climate action, they risk duplication, fragmentation and limited relevance.
A stronger starting point involves identifying where cooperation can unlock action that would not otherwise occur. This may mean targeting underserved sectors or identifying new contributions to high-impact opportunities. One example is the Global Methane Pledge, launched at COP26 to target the namesake super pollutant. Other opportunities could lie in areas like heavy industry, adaptation in climate-vulnerable regions or land-use transitions.
Equally important is recognizing where participation is currently lacking — whether among high-emitting countries, rapidly growing economies, or climate-vulnerable regions that face the greatest implementation challenges. Establishing a clear rationale for the initiative is essential for attracting meaningful participation and designing goals that matter.
2) Define the Initiative's PurposeInternational coalitions serve different functions: Some are designed to send political signals; others, to align standards, coordinate implementation, share technical knowledge or mobilize finance. When the intended function is vague, expectations can be misaligned, and success becomes difficult to assess.
A credible initiative should articulate whether commitments are collective or individual; whether their focus is political coordination or technical delivery; and whether they are meant to catalyze near-term action or longer-term transformation. This clarity helps determine who needs to be involved, what institutional arrangements are required, and how progress should be evaluated. Defining purpose early also reduces the likelihood of symbolic announcements that lack pathways to implementation.
For example, the Powering Past Coal Alliance (PPCA), launched by the United Kingdom and Canada at COP23, defined its purpose from the outset: as a collective political commitment to phase out unabated coal power and halt new plants without carbon capture and storage, while supporting clean energy transitions through domestic policy and finance measures.
3) Set Ambitious and Actionable GoalsActionable goals are essential for moving initiatives beyond statements of intent. While broad aspirations can help shape narratives or bring attention to a particular issue, initiatives with specific targets or well-defined action areas can better guide decision-making and implementation. For example, the Glasgow Leaders Declaration set a broad target to halt and reverse forest loss and land degradation by 2030, while the Forest & Climate Leaders' Partnership takes this a step further, with its participating countries working together on six action areas to help drive the achievement of the Glasgow Leaders goal.
Setting credible goals involves articulating what the initiative aims to achieve, by when and through what means. Furthermore, without clearly defined goals, it is difficult to assess progress, mobilize resources or coordinate efforts among participants.
Goal setting can be treated as an evolving process: At launch, initiatives should articulate clear quantitative or qualitative goals that signal intent and define their contribution to the cooperation landscape. As they mature, these goals should become time-bound and measurable. They can also be updated as progress is reviewed and the broader landscape evolves over time. For example, the SIDS Lighthouses Initiative, which aims to advance renewable energy installations in small islands states, has progressively revised and increased its targets several times. The initiative is now working toward achieving its third target (set for 2030), after meeting those previously set for 2020 and 2023.
A solar power installation in Fiji. Fiji is part of the SIDS Lighthouse Initiative, which aims to help expand renewable power in small island developing states. Photo by chameleonseye/iStock 4) Build with the Right Participants and LeadershipThe effectiveness and credibility of an initiative depend heavily on who is involved. Strong initiatives intentionally recruit participants that reflect both the problem and the solution. This includes major emitters, countries with significant implementation needs and regions that have been underrepresented in existing efforts.
Today, however, the landscape of climate initiatives is largely dominated by participation from developed countries; the United Kingdom, Canada, Germany, Japan and the United States are among the five most active countries. Governments from Latin America, Africa, Eastern Europe and small island developing states participate at lower rates. Meanwhile, participation and leadership from governments in the Global South remain disproportionately low, reducing equity, ownership and relevance.
A better example comes from the International Solar Alliance. India's leadership, together with France, helped establish this initiative, which has since transformed into an intergovernmental organization bringing together more than 120 member countries, many of which are located in the tropics.
Political leadership also matters. Visible champions — whether national governments, regional blocs or ministerial coalitions -— can help attract buy-in, sustain visibility and influence others to join. Geographic diversity and shared leadership across North-South contexts can strengthen credibility, ensure initiatives are grounded in diverse realities, and eventually drive the impact they aim to achieve.
5) Set Up for Success through Robust Institutional and Governance StructuresInitiatives are unlikely to produce impact without sufficient structures, including governance and funding. Developing a robust institution is a prerequisite for effective delivery, with clear decision-making and governance processes.
Research has shown that secretariats support an initiative's ability to deliver and are valuable tools for coordinating participating actors, directing and supporting activities, and facilitating engagement with outside stakeholders. Some initiatives may choose to establish a new, bespoke secretariat, or to house one within an existing organization. The Climate and Clean Air Coalition, for example, has developed robust governance structures, with a secretariat housed at the UN Environment Programme, rotating co-chairs, a diverse board and a scientific advisory panel.
But initiatives and their secretariats cannot deliver without the necessary levels of support, including funding. A dedicated budget is necessary to support process management (such as the secretariat) and the initiative's activities. Equally important is ensuring that this funding is sustained over the long term; otherwise, the initiative risks fading away and being unable to continue its activities.
6) Implement Outcome-Driven ActivitiesClimate initiatives often succeed in generating visibility, at least during COPs and other major events, but fall short when it comes to execution. To achieve real results, an initiative must be able to translate commitments into activities directly tied to outcomes — whether through policy coordination, technical support, standard setting, information sharing or mobilization of finance. Outputs should be aligned with the stated purpose and structured to allow for delivery within member countries' national contexts.
In practice, this may look like designing workplans or roadmaps and producing concrete outputs (such as technical guidance, pilot projects, finance mobilization plans or capacity building activities) that help member countries deliver their commitments. Here, it is essential to identify the stakeholders needed to effectively carry forward these activities in respective member countries.
With intergovernmental cooperative initiatives, making sure objectives are integrated into national plans and strategies can help strengthen implementation. Embedding initiative goals in domestic policy processes not only ensures that they are aligned with domestic efforts, but also enables activities to be tailored to national realities and ultimately achieve stronger outcomes on the ground.
For example, the Zero Emission Vehicles Transition Council (ZEVTC) supports participating countries through tailored partnerships that align national transport decarbonization strategies with industrial and clean energy policies. It aims to accelerate the transition to zero-emission vehicles by supporting domestic measures to phase out internal combustion engine vehicles and expand charging and refueling infrastructure. Through its multi-stakeholder platforms and country partnerships, ZEVTC helps translate political commitments into coordinated action, mobilize private-sector investment, and catalyze systemic shifts in the transport sector and on the ground.
Electric cars at curbside chargers in Copenhagen. Denmark is a member of the Zero Emission Vehicles Transition Council, which aims to help countries deliver on their transportation decarbonization strategies. Photo by LIVINUS/iStock 7) Monitor Initiative Impacts with Regular ReportingTransparency is essential for building trust that initiatives are making real progress toward their commitments, yet regular and systematic public reporting remains the exception rather than the rule. While some initiatives publish reports on their efforts online, including through UN Climate Change's Global Climate Action Portal, many provide only ad hoc statements or press releases. And others do not have any formal processes for tracking outputs and outcomes. A robust monitoring and evaluation system, through the development and use of indicators to measure progress against stated objectives, is critical for assessing whether initiatives are mobilizing resources, shifting policies or catalyzing systemic change — in other words, delivering.
This gap is more than a technical shortcoming: It strikes at the very credibility of international climate cooperation. Without clear evidence of delivery, the broader community cannot assess impact or hold initiatives accountable. As a result, confidence in these efforts can erode, raising doubts about the integrity of multilateral climate governance. Cooperation could start to appear as a vehicle solely for symbolic or even greenwashed leadership than as a driver for measurable results.
A Framework for Assessing Progress Assessing intergovernmental climate initiatives: An expectations-based frameworkExplore the full report.
WRI's recent research explores how to evaluate whether initiatives are equipped with the goals, governance structures, implementation strategies and reporting systems required to deliver on their commitments. This research puts forward a framework through which an initiative's maturity can be assessed. It tests whether an initiative's goals are clear, as well as complementary to the wider landscape of climate cooperation; whether governance and implementation structures are in place to turn commitments into concrete actions; and whether monitoring and reporting systems exist to track outcomes and communicate progress.
Applying this framework can help identify where climate initiatives need to enhance their efforts and transparency and, in turn, support a shift from one-off pledges toward concrete implementation and impact. Ultimately, the value of cooperation lies not only in what is promised, but in the impact delivered — and it's crucial that initiatives can demonstrate that they are making a difference.
How Can Cooperative Initiatives and COP30 Advance Climate Progress?Delivering on the promise of international cooperation will require active engagement and collaboration — not only among governments, but across all stakeholders, including international organizations, civil society, subnational and local governments, and others. With the world still off track to achieve the goals of the Paris Agreement, enhancing international cooperation is imperative.
Brazil's COP30 Presidency has drawn renewed attention to the "Global Climate Action Agenda," an umbrella encompassing the wide range of climate efforts undertaken by diverse actors. The incoming Presidency has sought to align the Action Agenda with the outcomes of the first Global Stocktake in order to connect real-world action with the negotiations at COP30. This effort opens new possibilities for harmonizing the multilateral process with the broader ecosystem of climate action, allowing countries to harness the cooperation already underway, elevate successes and address persistent barriers to greater impact.
Ultimately, the promise of intergovernmental climate cooperation will be determined not by the number of initiatives launched or commitments made, but through effective collective action that delivers systemic transformations.
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