MULTILATERAL CLIMATE FUNDS REMAIN CRUCIAL
WITH THE GREEN CLIMATE FUND DOMINATING
COP30 only ‘takes note’ of the BAKU TO BELÉM ROADMAP to $1.3 TRILLION (B2B). 1
Whether and how it will be implemented is unclear. The Roadmap confirms MULTILATERAL CLIMATE FUNDS (MCFs) as ‘a key MULTIPLIER in enabling finance to flow at scale’.
MAINTAINING MCF s ’ ROLE AND SCALE IS CRITICAL IN LIGHT OF ODA CUTS IN ORDER TO AVOID BACKSLIDING ON CLIMATE AMBITION AND EVEN MORE DAMAGING IMPACTS OF CLIMATE CHANGE.
CLEAN TECHNOLOGY
FUND
GREEN CLIMATE FUND
GLOBAL ENVIRONMENT
FACILITY
Cross-cutting Mitigation REDD+ Adaptation
ADAPTATION FUND LEAST DEVELOPED COUNTRIES FUND
THE LARGEST MCF IS THE GREEN CLIMATE FUND
TEN YEARS after its first approvals, it represents NEARLY HALF of all CFU-tracked approved funding between 2008 and 2025.
A RENEWED EFFORT
COP30 CALLED FOR ‘ EFFORTS TO AT LEAST TRIPLE ’ ADAPTATION FINANCE BY 2035 . IS LAUNCHED AT COP30
Succeeding the ambition to double adaptation finance from 2019 levels by 2025, the TRIPLING has been CRITICISED as having NO BASELINE and INCLUDING MORE SOURCES over a LONGER TIME.
TO SCALE ADAPTATION FINANCE
In 2025, CFU-tracked adaptation focussed MCFs collectively
QUADRUPLED their 2019 approvals.
Though the GREEN CLIMATE FUND has INCREASED ADAPTATION APPROVALS SIX-FOLD.
ADAPTATION FUNDS can further improve delivery with much STRONGER REPLENISHMENTS, with the tripling goal also needing MULTILATERAL DEVELOPMENT BANKS and BILATERALS to step up their funding.
This hides that the ADAPTATION FUND has fallen woefully SHORT OF THIS GOAL.
MULTILATERAL DEVELOPMENT BANKS
BILATERAL CLIMATE FINANCE
BUT RECEIVES FEW NEW PLEDGES
In 2025, the Fund launched its first funding call for 50% of which is for SIDS and LDCS
COP30 connected THE FUND FOR RESPONDING TO LOSS AND DAMAGE (FRLD) to the NCQG. The FRLD BOARD will develop a RESOURCE MOBILISATION STRATEGY by MID-2026, and prepare the Fund’s first replenishment for 2027. PLEDGES to the Fund remained SMALL in 2025, with ICELAND, JAPAN, LATVIA,
adding $16 MILLION and SPAIN $23 MILLION
Of $817 MILLION PLEDGED $250 MILLION START-UP only $446 MILLION has been PAID IN. THE SCALE OF THE FUND REMAINS SMALL IN COMPARISON WITH COUNTRY NEEDS.
ACCESS, GENDER AND HUMAN RIGHTS MANDATES
COLLIDE WITH LITTLE GUIDANCE FOR IMPLEMENTING QUALITY FINANCE
CLIMATE FINANCE PROVIDERS ARE TO FOLLOW MCF s IN ENHANCING ACCESS THROUGH:
READINESS SUPPORT ENHANCED DIRECT ACCESS SIMPLIFIED APPROVAL PROCESSES STREAMLINED ACCREDITATION PROCESSES
B2B suggests a more HOLISTIC VIEW OF ACCESS to include direct access for LOCAL and INDIGENOUS COMMUNITIES, MICRO, SMALL and MEDIUM-SIZED ENTERPRISES, and to promote GENDER EQUALITY.
14
MCFs have championed
LOCALLY-LED CLIMATE ACTION, GENDER-RESPONSIVE FINANCE and PROTECTION OF INDIGENOUS PEOPLES’ RIGHTS in project entry.
They must continue to improve
ACCESS, GENDER and HUMAN RIGHTS policies and their implementation to set an example for progress on the quality of climate finance delivery and outcomes.
MULTILATERAL CLIMATE FUNDS ARE RAMPING UP COOPERATION
MCFs ARE WORKING TO IMPROVE COMPARABILITY AND EFFICIENCY, EXPLORE CO-FINANCING AND TRACK PROGRESS.
output focussed indicators to better measure LOCAL-LEVEL EMPOWERMENT, SUPPORT FOR HUMAN RIGHTS and TRANSFORMATIONAL, SYSTEMIC CHANGE. AND TESTING JOINT IMPACT REPORTING
In 2025, the ADAPTATION FUND, CLIMATE INVESTMENT FUNDS, GLOBAL ENVIRONMENT FACILITY and GREEN CLIMATE FUND
piloted reporting on a core, COMMON SET OF IMPACT INDICATORS. Work continues to improve these
ACHIEVED EXPECTED
MITIGATION
ADAPTATION
710 MILLION TONNES CO 2 EQ already reduced/avoided
371 MILLION adaptation beneficiaries reached
9.3 BILLION TONNES CO 2 EQ emissions expected to be reduced/avoided
1.785 BILLION adaptation beneficiaries expected to be reached
ENERGY
CAPACITY
34,171 MW low-emission energy capacity already installed
65,900 MW low-emission energy capacity expected to be installed
EFFICIENCY 77M MW h annual energy savings already realised 383M MW h annual energy savings expected
NATURE
156 MILLION HECTARES under sustainable management practices
3.8 BILLION HECTARES expected to be brought under sustainable management practices
GRANT FINANCE CONTINUES TO LEAD
MULTILATERAL CLIMATE FUND APPROVALS
GUARANTEES EQUITY
GRANTS
comprise 57% of CFU-tracked approvals by MCFs since 2008 aligning with the NCQG emphasis on the role of non-debt-creating instruments.
CONCESSIONAL LOANS
GRANTS 91 %
THIS IS VITAL FOR LEAST DEVELOPED COUNTRIES (LDC s ) AND SMALL ISLAND DEVELOPING STATES (SIDS) WHERE GRANTS COMPRISED OVER 91% OF FUNDING FROM UNFCCC FUNDS IN 2025.
While the GREEN CLIMATE FUND relies on GRANTS and CONCESSIONAL LOANS, it has increased its EQUITY INVESTMENTS and RISK GUARANTEES to mobilise private capital flows, mostly for MITIGATION.
GRANTS
FINANCIAL INSTRUMENTS must be applied strategically to avoid worsening sovereign debt crises and to ensure justice. 17
A BALANCE BETWEEN ADAPTATION AND MITIGATION SPENDING
REMAINS ELUSIVE
NO DEFINITION OF ‘BALANCE’ BETWEEN ADAPTATION AND MITIGATION EXISTS, DESPITE IT BEING EMBEDDED IN MULTIPLE DECISIONS.
APPRECIATING DIFFERENT PERSPECTIVES IN DETERMINING BALANCE, AND AVAILABILITY OF DATA TO DO SO, IS CRITICAL FOR TRACKING THE NCQG . ADDING LOSS AND DAMAGE COMPLICATES MATTERS FURTHER.
From a RECIPIENT PERSPECTIVE, ADAPTATION NEEDS are expressed slightly more frequently. Yet COSTED MITIGATION NEEDS in Nationally Determined Contributions are higher.
GRANT EQUIVALENTS
The GCF PORTFOLIO is close to 50:50 taken at face value, but in GRANT EQUIVALENTS, more funding goes to ADAPTATION.
Also from a PROVIDER PERSPECTIVE
CFU-TRACKED MCFs have more projects for MITIGATION. And, far more approved funds for MITIGATION, as compared to APPROVALS for ADAPTATION.
COUNTRIES REMAIN ELIGIBLE FOR CONCESSIONAL FINANCE
THROUGH THE MULTILATERAL CLIMATE FUNDS
MCF s TRACKED BY CFU HAVE SUPPORTED 153 COUNTRIES THROUGH 3,914 PROJECTS WORTH $42 BILLION . SINCE 2008 . CONCESSIONAL
HAS BEEN APPROVED FROM MCFs TO ALL REGIONS, WITH SPECIAL PROVISIONS FOR PARTICULARLY VULNERABLE LDCs AND SIDS.
GLOBAL AND MULTI-REGIONAL PROJECTS
LATIN AMERICA & CARIBBEAN
EAST & SOUTH ASIA
SUB-SAHARAN AFRICA
EUROPE & CENTRAL ASIA
MIDDLE EAST & NORTH AFRICA
EAST & SOUTH ASIA
LATIN AMERICA & CARIBBEAN
MIDDLE EAST & NORTH AFRICA
SUB-SAHARAN AFRICA
The HIGH-QUALITY CAPITAL offered by MCFs is CRITICAL as some developing countries (including several SIDS) are DISQUALIFIED
A NEW FOREST FINANCE INITIATIVE IS LAUNCHED
A ROADMAP TO HALTING DEFORESTATION FAILED TO MAKE THE COP30 TEXT
but outside of the process, the TROPICAL FOREST FOREVER FACILITY launched with $6.7 BILLION in pledges.
This effort is ADDITIONAL to the CFU-tracked $5.1 BILLION in approvals for dedicated efforts to reduce emissions from deforestation and degradation plus conservation (REDD+) since 2008.
The TFFF promises to pay countries for retaining forest cover depending on realised capital market investment returns. But, it remains to be seen how and how much funding will reach Indigenous Peoples and local communities.
CLIMATE FINANCE PROVISION IS TO BE STRENGTHENED
THROUGH A NEW WORK PROGRAMME
COP30 delivered a TWO-YEAR WORK PROGRAMME on climate finance, including on its PROVISION from developed to developing countries, though it will include MOBILISED FINANCE and VOLUNTARY ACTION from other Parties.
This work programme will happen in PARALLEL to the significant PREPARATION required before the
FIRST NCQG REPORT and SECOND GLOBAL STOCKTAKE in 2028, and the NCQG DECISION REVIEW in 2030. Both processes will seek clarity on INTENDED CONTRIBUTIONS of developed countries and PATHWAYS for STRONG MCF REPLENISHMENTS.
NCQG REVIEW TRIPLING OF FUND OUTFLOWS
2 nd NCQG REPORT NCQG START
GEF-9 started
FRLD starts GCF-3 starts
ONLY THEN CAN THESE FUNDS DELIVER ON THE NCQG COMMITMENT TO TRIPLE UNFCCC FUNDS’ COLLECTIVE ANNUAL OUTFLOWS FROM 2022 LEVELS BY 2030 . 26
ENDNOTES
1 The Baku to Belém roadmap is a component of the New Collective Quantified Goal on climate finance, agreed one year ago at COP29. UNFCCC (2025). Global Mutirão: Uniting humanity in a global mobilisation against climate change. UNFCCC. Available at: https://unfccc.int/sites/default/files/ resource/cma2025_L24_adv.pdf
2 COP29 and COP 30 Presidency (2025). Report on the Baku to Belém Roadmap to 1.3T. COP29 and COP 30 Presidency. Available at: https://unfccc.int/sites/default/files/resource/ Relatorio_Roadmap_COP29_COP30_EN_final.pdf p22
3 See: https://donortracker.org/publications/budget-cutstracker and, OECD (2025). Cuts in Official Development Assistance: OECD projections for 2025 and the near term. OECD Policy Briefs. Available at: https://www. oecd.org/en/publications/cuts-in-official-developmentassistance_8c530629-en/full-report.html
4 UNFCCC (2025). Global Mutirão: Uniting humanity in a global mobilisation against climate change. UNFCCC. Available at: https://unfccc.int/sites/default/files/resource/cma2025_ L24_adv.pdf
5 As per decision 1/CMA.3, paragraph 18
6 Carbon Brief (2025). Analysis: Why COP30’s ‘tripling adaptation finance’ target is less ambitious than it seems. Carbon Brief. Available at: https://www.carbonbrief.org/ analysis-why-cop30s-tripling-adaptation-finance-target-isless-ambitious-than-it-seems/
7 This includes adaptation focussed projects of the Green Climate Fund (GCF), Adaptation Fund (AF), Least Developed Countries Fund (LDCF) and the Special Climate Change Fund (SCCF).
8 WRI (2025). Reaching $120 billion in International Adaptation Finance is Possible – Here’s what it takes. WRI. Available at: https://www.wri.org/insights/tripling-adaptation-financegoal and; Thwaites and Thomas (2025). What Could a New Adaptation Finance Goal Look Like? Exploring seven potential scenarios for a new climate adaptation finance goal. NRDC. Available at: https://www.nrdc.org/bio/joe-thwaites/whatcould-new-adaptation-finance-goal-look#post-2025
9 Available at: https://unfccc.int/sites/default/files/resource/ CMA7_10d_FRLD_auv.pdf
10 See the Barbados Implementing Modalities at: https://www.frld.org/nodebim
11 See: https://unfccc.int/sites/default/files/resource/ CMA7_10d_FRLD_auv.pdf, and Thwaites (2025). Climate Funds Pledge Tracker. NRDC. Available at: https://www.nrdc.org/ resources/climate-funds-pledge-tracker. Note: new pledges were received in a variety of currencies, with exchange rate fluctuations of conversion to US dollars at different times leading to slightly differing amounts.
12 Data correct as of February 2026. See: https://www.frld. org/pledges; and, https://fiftrustee.worldbank.org/en/ about/unit/dfi/fiftrustee/fund-detail/frld#2
13 As decided in the NCQG, UNFCCC (2024) New collective quantified goal on climate finance. UNFCCC. Available at: https://unfccc.int/sites/default/files/resource/cma2024_ L22E.pdf
14 COP29 and COP 30 Presidency (2025). Report on the Baku to Belém Roadmap to 1.3T. COP29 and COP 30 Presidency. Available at: https://unfccc.int/sites/default/files/resource/ Relatorio_Roadmap_COP29_COP30_EN_final.pdf p25
15 See for example the ‘Efficient GCF’ initiative and the Draft Multilateral Funds Action Plan on Complementary and Coherence (2024), available at: https://www.greenclimate. fund/about/efficient-gcf and https://www.adaptation-fund. org/wp-content/uploads/2024/09/AFB.B43.15_MCFs-DraftAction-Plan-on-Complementarity-and-Coherence.pdf, respectively.
16 Multilateral Climate Funds (2025). Multilateral Climate Funds Joint Results Report. Available at: https://www.cif.org/ sites/cif_enc/files/knowledge-documents/cfs-joint-resultsreport-2025.pdf
17 This statistic covers data from a subset of the CFU MCF, namely those mentioned in the NCQG decision, including only the Green Climate Fund (GCF), Global Environment Facility (GEF) and the Fund for responding to Loss and Damage (FRLD), as well as the Adaptation Fund (AF), Least Developed Countries Fund (LDCF) and the Special Climate Change Fund (SCCF).
18 UNFCCC (2024) Second report on the determination of the needs of developing country Parties related to implementing the Convention and the Paris Agreement. Bonn: UNFCCC Standing Committee on Finance. Available at: https://unfccc.int/documents/641873
19 The GCF governing instrument establishes balance as 50:50 in grant equivalents for adaptation and mitigation. It also requires 50% of adaptation support for SIDS, LDCs and African states in grant equivalents according to its allocation framework. Correct as of October 2025, see the GCF dashboard at: https://www.greenclimate.fund/ projects/dashboard
20 The remainder of the amount is considered cross cutting in nature. REDD+ is included in mitigation.
21 The B2B highlights that high GDP per capita disqualifies some vulnerable nations from ODA and IDA. IDA lending through the World Bank Group depends on poverty measures (defined as gross national income per capita below an established threshold), while ODA eligibility is based on low and middle-income groupings of the World Bank Group defined by gross national income per capita. COP29 and COP 30 Presidency (2025). Report on the Baku to Belém Roadmap to 1.3T. COP29 and COP 30 Presidency. Available at: https:// unfccc.int/sites/default/files/resource/Relatorio_Roadmap_ COP29_COP30_EN_final.pdf
22 WRI (2025). STATEMENT: COP30 Delivers on Forests and Finance, Underdelivers on Fossil Fuels. WRI. Available at: https://www.wri.org/news/statement-cop30-deliversforests-and-finance-underdelivers-fossil-fuels
23 Much of this pledged capital will eventually be returned. See TFFF factsheets at: https://tfff.earth/about-tfff/
24 See the TFFF Watch Investment Tracker at: https://tfffwatch.org/investment-tracker/
25 The World Bank is acting as Secretariat. See announcement at: https://cop30.br/en/news-about-cop30/over-usd-5-5billion-announced-for-tropical-forest-forever-facility-as-53countries-endorse-the-historic-tfff-launch-declaration
26 The funds that are considered under this tripling are not all of the funds monitored by CFU. They include only the Green Climate Fund (GCF), Global Environment Facility (GEF) and the Fund for responding to Loss and Damage (FRLD), as well as the Adaptation Fund (AF), Least Developed Countries Fund (LDCF) and the Special Climate Change Fund (SCCF).
10 THINGS TO KNOW ABOUT CLIMATE FINANCE IN 2026
Charlene Watson and Liane Schalatek
ACKNOWLEDGEMENTS
The authors are grateful for valuable insights and review from Aurélien Evéquoz, Joe Thwaites (Natural Resources Defense Council), Bertha Argueta (Eurodad), Rebecca Thissen (CAN) and Carl Roberts (hbs Washingon, DC). All errors or omissions remain the authors’ own. Further gratitude is extended to Steven Dickie for thoughtful design of the 10 Things to Know about Climate Finance in 2026.
Heinrich Böll