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Since its last major famine more than a decade ago, Somalia has received well over a billion dollars a year in humanitarian aid. But that spending – aimed at meeting immediate basic needs for food and water in the conflict-ravaged Horn of Africa country – has not reduced demands for help, which are instead rising as climate change brings more frequent and severe floods and droughts.

With supplies of international aid increasingly falling short around the world as the number and scale of crises and disasters grows, humanitarian groups are trying out new approaches to close the gap, including “anticipatory action” which pushes small amounts of cash to those in the path of a looming disaster, to help them better protect themselves and their assets.

In countries such as Bangladesh, with strong early warning systems and disaster-reduction mechanisms in place, such efforts have been shown to cut losses by about $7 for each $1 invested. But in the world’s most fragile and conflict-affected states – from Somalia to Afghanistan, and Iraq to Chad – systems like this are often missing.

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Reducing humanitarian needs and boosting resilience there will require building basic infrastructure, something that can only happen if development, peace-building and relief groups – and their funders – get out of their comfort zones and overcome obstacles to working together, resilience researchers say.  

“The only way to get ahead of a disaster is not by mitigating its effects but by avoiding it happening in the first place – by investing in disaster-risk reduction and climate adaptation,” said Mauricio Vazquez, who leads work on climate change and conflict at ODI Global, a London-based think-tank. 

“You don’t need to wait for a bad weather forecast to do something. Anticipatory action done by humanitarians doesn’t create opportunities for people, it just helps make the best of a situation,” he said in an interview with Climate Home. 

Weak governance exposes people 

Abdihakim Ainte, director of climate change for Somalia’s prime minister, agreed that “vulnerability primarily stems from the dysfunction of key institutions.” 

“The weaker the institutions, the more susceptible people are to every shock and disruption,” he told Climate Home. 

 At last year’s COP28 climate talks, more than 100 countries, banks and other organisations issued a call for “collective action to build climate resilience at the scale and speed required in highly vulnerable countries and communities, particularly those threatened or affected by fragility or conflict.”

Innovative efforts to make that happen are ramping up. Financiers including the African Development Bank, for instance, are increasingly trying to move development cash through peace-building and humanitarian groups on the ground in conflict-hit areas. 

The bank has signed an agreement with the International Federation of Red Cross and Red Crescent Societies (IFRC), an organisation that “has the ability to operate in very insecure environments. They stay there – they’ve been there for decades,” said Fredrick Teufel, the bank’s lead coordinator of efforts to boost its investments in fragile contexts. 

The IFRC focuses on using humanitarian grants to deliver short-term aid. But in places like conflict-plagued Goma, in the eastern Democratic Republic of Congo, or in Somalia, “there’s no reason they cannot use that delivery capacity there to also advance irrigation (or) community-based solar,” Teufel said in an interview with Climate Home. 

Humanitarian groups can give funders crucial and otherwise unavailable insights into what communities affected by conflict themselves see as the most useful investments, he said, noting that “they all want development solutions, not another bag of rice.” 

But significant institutional obstacles stand in the way of scaling up such cooperation, including a need by humanitarian groups to be seen as neutral in conflict zones, and accounting rules that require different types of development and climate funding to be kept in separate pots to avoid double counting. 

Humanitarian action limited 

In Goma, in the Democratic Republic of Congo, the International Committee of the Red Cross (ICRC), which focuses on protecting victims of armed conflict, is working with development partners and funders over seven years to rehabilitate and expand the Goma West water system – a project that serves both development and humanitarian needs.

But such projects don’t lead to meeting broad country-level needs, warned Catherine-Lune Grayson, head of policy at the ICRC. 

In order to protect their ability to access conflict-hit communities, humanitarian groups need to carefully avoid taking sides in political disputes – and choices about partners and where to spend development money are often political. 

“We have to tread a fine line. Where do we join forces, and where do we need to keep a healthy distance so it’s not read as too political?” Grayson asked, emphasising the need for “complementary” rather than “joint” work. 

Cross-border climate risks can’t be solved in isolation

Scale is another issue. “We can help rehabilitate the water system in Goma, but you cannot ask the ICRC to restore and expand all water systems across the country. We will say we’re not equipped to do this,” she said. 

Still, the view that countries struggling with conflict are not the sole responsibility of humanitarian agencies is fortunately growing, she said. 

“A few years ago, there would not even have been a discussion about this. There’s been a real shift,” she added. 

Maladaptation? 

The different time horizons of humanitarian groups – focused on meeting short-term needs – and development actors – focused on longer-term aims – are another area that needs attention as groups try to work together, said Manisha Gulati, a global risks and resilience researcher with ODI Global. 

In Somalia, for instance, wells and water storage are often being built to meet immediate humanitarian demand – but analysis by ODI researchers suggests the money is not being spent where it will be most needed in the future, as climate change impacts strengthen, she said. 

“We have mapped where water insecurity is now and where it will get worse – and that’s where we should be thinking about. That’s how we prevent the next drought and humanitarian crisis,” Gulati said. 

Today “we’re digging wells that won’t work in the long term. It’s maladaptation and we’re not using finance well if we’re using it in a manner where in the next 5-10 years we create a problem,” she said. 

Simply improving communication among those working to solve problems in armed conflict areas is one way to move ahead, Gulati said. “How do we talk about collective action when agencies have no idea what the others are doing?” she asked. 

Ainte, of Somalia, said efforts to win resources for crucial development in conflict-hit countries – a challenge as development aid stagnates – can often come into conflict with appeals for humanitarian aid, which keep the focus on vulnerability. 

“The humanitarian narrative has to change to a development narrative. Somalia has resources that need to be invested in. We need that kind of mentality, that we are a country that has potential and deserves investment, rather than a country that has a problem,” he said. 

Need to fix systems 

But winning funding to boost development and create resilient systems in fragile countries will also require the countries themselves to step up, including cutting corruption and building stronger guardrails to ensure funds are used effectively, Gulati said. 

“They need to understand it’s not a one-way street – they have to make an equal effort and adjustments,” she said. “You might get $100 million – but you won’t get more unless you fix the basics in your systems.” 

With climate impacts surging and almost two-thirds of the world’s extreme poor expected to live in countries that are fragile or conflict-affected by 2030, the stakes for getting this cooperation right are growing, she added.

“We can keep throwing money at the humanitarian problem, but we’re not reducing the caseload,” she said. “We need to address the basic vulnerabilities that are leading to this situation. If we don’t do that, we’re not going to solve the problem.” 

Sponsored by ODI Global and the Climate, Peace and Transboundary Resilience Pavilion at COP29. See our supporters page for what this means. 

Laurie Goering is a freelance writer and editor based in London, UK. 

The Climate, Peace and Transboundary Resilience Pavilion at COP29 will host 30 events with world-leading experts, including heads of state and other leading representatives from governments, climate funds, aid agencies, civil society organisations, and more. All events will be livestreamed. For more information visit the Pavilion page here.

The post Aid agencies grapple with climate adaptation in fragile states   appeared first on Climate Home News.

Aid agencies grapple with climate adaptation in fragile states  

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Nature cannot be ignored by Europe’s next big budget

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Adeline Rochet is a programme manager for the Corporate Leaders Group Europe, a business coalition driving the transition to a sustainable, competitive, and resilient economy convened by the University of Cambridge Institute for Sustainability Leadership (CISL).

Europe’s economy depends on the natural world functioning as it should, but the effects of climate change risk undermining increasingly delicate ecosystems. Talks about the European Union’s next long-term budget miss this fact.

Climate-related losses in the EU have already reached €822 billion since 1980, with a quarter of that damage concentrated in just the past four years. Ecosystems are under increasing pressure: more than 80% of protected habitats are in poor condition, soils are degrading and water stress is rising across the continent.

The latest state of the climate report by the EU’s Earth monitoring service Copernicus confirms this worrying state of affairs: 95% of Europe experienced above-average temperatures in 2025.

Economic exposure to nature-related risk is also growing. Businesses, banks and insurers are beginning to reflect this in their risk assessments.

So, will the policymakers in charge of developing the European Union’s next big budget integrate this vision? We are in the midst of finding out.

    Every seven years, the EU must negotiate a new budget that will help fund priorities over a seven-year-long period. The current one, which runs out next year, is worth more than a trillion euros.

    Talks about the next multiannual financial framework (MFF) for 2028-2034 are now getting serious and the initial outline of this new budget shows it will focus on competitiveness, resilience and prosperity.

    But, as the European Parliament adopted its negotiating position for the crunch budget talks and EU member states shape their approach ahead of a Council meeting on May 26, it is clear that the positioning of nature within this framework is strategically underestimated.

    Why nature impacts economic growth 

    Back in 2022, France’s nuclear power output was severely affected when heatwaves drove up the temperature of the rivers used to cool atomic reactors, impacting other European countries too. This was particularly poor timing given the energy price crisis triggered earlier that year by Russia’s illegal invasion of Ukraine.

    Low river levels caused by drought have also heavily impacted economic activity and growth in countries like Germany, due to the negative effect on inland trade, while degraded fields in the Netherlands combined with heavy rainfall have ruined potato harvests.

    These examples show that we cannot detach the health of the European economy from the good functioning of nature.

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    Nearly three-quarters of businesses in the eurozone rely directly on ecosystem services such as clean water, fertile soils and pollination. That dependency extends into the financial system, where around 75% of bank lending is exposed to companies dependent on these natural assets.

    They entirely underpin supply chains and financial stability across the European economy. If load-bearing ecosystems collapse, businesses not only face disruption in their own operations, but they will also be exposed to failures from suppliers and customers.

    This is not just a risk for individual companies, it is a threat for the whole system.

    A budget that looks greener than it is

    According to the latest proposals for the next MFF, a single 35% climate and environmental target will replace priorities that used to have distinct funding. As it stands, biodiversity has a 10% target, yet spending has struggled to reach even 8%, already showing how easily it is put to one side in practice.

    In the new framework, biodiversity is absorbed into a broader category with no separate tracking or visibility. Dedicated instruments are folded into larger funding envelopes, and nature-based investments are placed in direct and distorted competition with industrial projects.

    These are often faster to deploy and easier to measure, making them more attractive.

    Headline figures reinforce some appearance of ambition, with €587–635 billion allocated to climate and environmental objectives. But since these are aggregated numbers, they do not show how much will reach ecosystem conservation or restoration.

    Less visibility, weaker accountability

    Biodiversity funding also remains structurally fragile, with around 80% concentrated in agriculture policy rather than supported by a diversified investment strategy.

    This shift is structural: nature has been relegated from a defined priority to a mere discretionary allocation, and the governance model reinforces this dynamic.

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    Greater reliance on National and Regional Partnership Plans (NRPPs) moves decision-making into national spending choices, where fiscal and domestic political pressure will likely mean long-term ecosystem investments struggle to compete with short-term economic demands.

    The current MFF paints a worrying picture of structural triple risk for nature: reduced visibility, increased competition for funding and weaker accountability.

    Nature is critical infrastructure

    It is a point worth reiterating: investment in nature offers clear economic returns. Healthy ecosystems drive resilience by reducing exposure to climate damage and supporting local economic activity.

    Public finance plays a decisive role in enabling these investments at scale, making budget design a question of risk management and capital allocation.

    Nature-based solutions already perform essential economic functions. They regulate water systems, restore carbon sinks, provide a buffer against extreme weather events and support agricultural productivity.

    These are characteristics of infrastructure. Energy systems, transport networks and digital capacity are treated as strategic investments because they underpin competitiveness.

    Natural systems play the exact same role, so why does the current budget plan not reflect this?

    The next EU budget will shape investment for the decade ahead. Its structure will determine how risks are managed and where capital flows. Nature cannot be erased in favour of competing short-term priorities.

    In the upcoming negotiations, European leaders still have the option to treat nature as a structural objective and a core asset, supporting Europe’s resilience and long-term competitiveness. But they must act now, before it’s too late.

    The post Nature cannot be ignored by Europe’s next big budget appeared first on Climate Home News.

    https://www.climatechangenews.com/2026/05/25/nature-cannot-be-ignored-by-europes-next-big-budget/

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    In Florida, an Agricultural Town in Need of an Economic Boost Eyes Hyperscale Data Centers

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    Across the state’s heartland, communities such as Indiantown are weighing proposals for hyperscale data centers. The massive facilities would reshape Florida’s rural lands.

    INDIANTOWN, Fla.—Carroll McAllister frets over the prospect of a hyperscale data center opening next to the grassy expanse where she grew up, in a shack her father built.

    In Florida, an Agricultural Town in Need of an Economic Boost Eyes Hyperscale Data Centers

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    Climate Change

    USDA Extends Pause on Loans for Controversial Digesters That Turn Manure Into Biogas

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    Anaerobic digester loans showed “significant delinquency rates,” the U.S. Department of Agriculture said, while environmental groups see the technology driving an expansion of large-scale animal farming operations.

    The federal government’s pause on new loans for anaerobic digesters, the controversial method of converting animal manure from large-scale feeding operations into biogas, will now extend through the end of the year.

    USDA Extends Pause on Loans for Controversial Digesters That Turn Manure Into Biogas

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