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For over a decade, Indigenous and local communities have demanded a bigger share of international funding to protect nature and the climate, as well as easier access to that money. But progress has been limited, with only 1-2 percent of such finance reaching them directly, reports show. 

Now frustrated Indigenous rights groups are trying a new tactic to speed up change: creating their own funds in a push to boost the flow of money to frontline communities and shift away from what some see as an outdated colonial-style model driven by donors in the Global North. 

Since 2020 – and especially last year – more than half a dozen new Indigenous-led funds have sprung up, largely in forest-rich Brazil but also in developing countries from Indonesia to Mexico.  

Many are still in a start-up phase, but a few have already begun pushing money to frontline communities. They include the Mesoamerican Territorial Fund (MTF), which invested $1.3 million in 32 projects – from chocolate production to tourism and protecting traditional knowledge – in communities from Mexico to Panama last year. 

“We are aiming not only to make the funds reach the real guardians of the forest and the real guardians of mitigating and adapting to climate change, but also to support sustainability, democracy and good governance of all these territories,” said María Pía Hernández, a lawyer and regional manager for the MTF. 

World Bank climate funding greens African hotels while fishermen sink

Multilateral funds can take years to approve projects and often struggle to funnel big pots of nature and climate finance into the smaller-scale projects communities need, Indigenous leaders said.  

The new funds aim to fill the gap by gathering large amounts of money, distributing it nimbly and leap-frogging the barriers faced by forest communities in dealing with traditional funds, such as onerous paperwork. 

“We aim to improve not just the condition of the territories and people who live there but also promote global climatic justice,” Hernández said on the sidelines of last week’s Skoll World Forum, a gathering of social innovators.  

Bypassing the giants 

As the World Bank and International Monetary Fund hold their Spring Meetings in Washington this week, focused in part on reshaping lending for climate action, Indigenous communities are already rethinking how to better access the resources they need to protect nature and the climate – and to ensure those on the frontline benefit from changes such as new clean energy infrastructure. 

Along the way, they are setting up new rules and structures in line with their own traditions and beliefs, after years of chafing against constraints imposed by big donors, some of them former colonial powers. 

Fossil fuel debts are illegitimate and must be cancelled

In Canada, for instance, many Indigenous governing bodies now run their own renewable energy utilities, providing a fifth of Canada’s renewables, said Joan Carling, executive director of Indigenous Peoples Rights International. 

“If we transform the business-as-usual and create the enabling environment and conditions to put Indigenous people at the centre of this, then we can have a truly just, equitable renewable energy for all,” she said. 

A new dashboard released last week by the Rights and Resources Initiative and the Rainforest Foundation Norway shows climate finance for indigenous and local communities rose between 2020 and 2023 to about $517 million per year, a 36 percent increase over the previous four years. 

That increase comes after governments and charitable donors promised $1.7 billion back in 2021 to Indigenous and local communities by 2025 for their role in protecting land and forests, which are considered key to protecting both the climate and biodiversity. 

Yet with much new funding still moving through big international environment organisations and other intermediary agencies, rather than directly to communities, “there is no evidence yet indicating a systematic change in funding modalities,” the groups noted in a report.

Connecting communities with cash 

Solange Bandiaky-Badji, coordinator of the Rights and Resources Initiative, said improving direct access to funding is the key issue. At least $10 billion in finance for Indigenous and local communities will be needed to meet a global pledge to protect at least 30 percent of the planet’s land and oceans by 2030, she added. 

Indigenous-led funds believe they can be pivotal to achieving that ramp-up. 

Shandia, established by the Global Alliance of Territorial Communities uniting 35 million people from 24 countries, is still in a start-up phase but aims to serve as a conduit for much larger-scale finance to Indigenous and other frontline groups. 

“Millions of dollars are moving in the world. We want to connect claims on the ground to those millions,” said Juan Carlos Jintiach, a Shuar indigenous leader from Ecuador and the alliance’s executive secretary, who was shortlisted for the Nobel Peace Prize last year for his work on behalf of Indigenous communities. 

Indonesia’s main Indigenous alliance similarly in 2023 helped establish the Nusantara Fund, while in Brazil a range of Indigenous-led vehicles, including the Podáali Indigenous Amazonian Fund, were launched last year.

Guardians of the forest – and finance?  

Anthony Bebbington, who runs the Ford Foundation’s international natural resources and change change programmes, said the last few years had seen the emergence of substantial new funds, with the potential to grow, that are challenging the traditional ways donors have worked.  

“Funds are saying to us, ‘If you trust us to be guardians of the forest – a role for which we are often harassed and sometimes killed – then there is no justification for you to also not trust us to be guardians of the finance’,” he told an event on the sidelines of the Skoll World Forum. 

In projects backed by the Mesoamerican Territorial Fund, for instance, indicators of success are changing from a simple focus on hectares of forest replanted to include things like whether more water is flowing through key rivers, said Hernández, whose fund so far gets 80 percent of its support from philanthropies. 

An Indigenous Ramas man lifts a crayfish trap in the Rio Indio river, San Juan de Nicaragua, Nicaragua on February 16, 2022.(Photo: Reuters/Antoine Boureau/Hans Lucas)

The MTF also actively seeks out and helps prepare applications from Indigenous and local communities that could benefit from its support rather than just accepting grant proposals, as traditional donors often do.  

David Rothschild, senior director of partnerships for Nia Tero, a US non-profit that works with Indigenous groups, said avoiding heavy paperwork was key to enabling the new funds take off. 

“What they don’t want is to become another entity in the system operating in a colonial way. How do they not fall into the same patterns that have been destructive, while still reporting to donors?” he asked. 

Hernández said new ways of working are developing, if sometimes too slowly. “We are not asking for blank cheques,” she emphasised. “But we deserve a little bit of consideration.”

(Reporting by Laurie Goering; editing by Megan Rowling)

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UN chief urges countries to adopt fossil fuel transition plans with timelines

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The head of the United Nations has called on all countries to deliver plans for phasing out their production and consumption of fossil fuels, as rising oil prices and climate shocks threaten energy and human security.

In his farewell speech to the UN General Assembly (UNGA) in New York on Tuesday, outgoing UN Secretary-General António Guterres for the first time urged “every government to adopt a national plan to transition away from fossil fuels” aligned with limiting warming to 1.5C. The plans, he said, should include “clear timelines and protection for affected workers and communities”.

“We know fossil fuel interests won’t step aside on their own. For decades, Big Oil has treated the atmosphere as an open sewer – and cashed in on the consequences,” Guterres told diplomats in his speech opening the leaders’ segment of the assembly, also calling out the industry’s windfall profits after Russia’s invasion of Ukraine.

    At last year’s COP30 climate summit in Belém, a group of about 80 governments led a failed push to develop a global roadmap to transition away from fossil fuels. Brazil instead proposed to draft a voluntary report that will be presented this year ahead of COP31 after countries and organisations submitted their views to the process.

    Governments first agreed to transition away from fossil fuels in energy systems at COP28 in Dubai in 2023, but have since failed to agree at UN climate talks on how to move forward with that commitment, as efforts to do so have been effectively blocked by large fossil fuel-producing countries.

    France, Netherlands issue plans

    A few countries have moved forward with their own transition plans. France launched the first one at an international conference on the issue in April and the Netherlands followed suit this month. Not being major fossil fuel producers, both European nations aim to end their coal, oil and gas consumption by 2050, although the Dutch plan was criticised for not setting specific phase-out dates for the dirty fuels.

    Adão Soares Barbosa, climate ambassador from Timor-Leste and chair of the Least Developed Countries (LDC) group in the UN climate negotiations, told a press briefing on Tuesday that last year’s discussions on shifting away from fossil fuels need to continue at COP31, adding that developed countries should lead the way with transition plans and curb their use of fossil fuels.

    “We are expecting that we can make a request to major-emitting countries to limit emissions from this sector,” he said. “For LDCs, we’ll also try to reduce fossil fuel use, but it will depend on national circumstances.”

    Samoa’s lead negotiator Anna Rasmussen said small island states have outlined their energy transition plans in their nationally determined contributions (NDCs) – countries’ plans for meeting the Paris Agreement goals – but added “we’re still waiting” for climate finance to help implement those plans.

    Despite the global push to clean up the energy mix, countries leading climate talks are themselves also expanding fossil fuel production. COP31 co-presidents Australia and Türkiye have both recently given the green light to mine and drill more coal, oil and gas, and still depend on fossil fuels for 60% and 56% of their electricity production respectively.

    Fossil fuel expansion threatens COP31 hosts’ credibility, experts warn

    COP30 host nation Brazil has also persisted with its plans to explore potential new oil reserves near the mouth of the Amazon River – a region known as the Equatorial Margin.

    These are moving ahead despite President Luiz Inácio Lula da Silva announcing last year at the Belém climate summit that the country would develop its own fossil fuel phase-out plan. This is still under development with little information about its progress and may be hampered by elections next month.

    “We have achieved our self sufficiency in oil and will continue to explore the potential of new reserves, such as those in the Equatorial Margin,” Lula said in his speech to the UNGA on Tuesday. “But we will not abandon the environmental agenda,” he insisted. “We will move forward with the roadmap for the decarbonisation of the Brazilian economy.”

    Transition far cheaper than status quo

    Speaking at the main Climate Week NYC venue, Mads Christensen, executive director of Greenpeace International, said given the fast-shifting cost dynamics for both fossil fuels and renewables, countries should revise their existing energy plans because they are now out of date.

    Gas power generation now costs around 150 euros per megawatt compared with around 50 euros for solar with battery storage – making the latter two-thirds cheaper.

    “If these plans were updated, I think we would have a much faster transition because it simply makes good financial sense,” he said.

    A technician walks next to solar panels that partially provide electrical power to the Grand Mosque of Istiqlal in Jakarta, Indonesia (Photo: REUTERS/Willy Kurniawan)

    A technician walks next to solar panels that partially provide electrical power to the Grand Mosque of Istiqlal in Jakarta, Indonesia (Photo: REUTERS/Willy Kurniawan)

    Tzeporah Berman, founder and chair of the Fossil Fuel Treaty Initiative, told Climate Home News that the Santa Marta process for transitioning away from fossil fuels (TAFF), launched at April’s conference, could help countries discuss, design and develop their national roadmaps, as well as mobilise the international cooperation required to actually deliver them.

    “Many countries want not only national roadmaps but a global roadmap off the highway to hell,” she added. “A global plan is necessary to ensure the rules aren’t rigged against those who want to do the right thing and so all countries can make credible commitments.”

    The second TAFF conference will be held in the Pacific island nation of Tuvalu next spring, co-chaired by Ireland. In New York, Tuvalu’s climate minister Maina Vakafua Talia called for stepped-up efforts to tackle the fossil fuel use that is threatening his country’s “demise” by driving global warming.

    “The world is running out of time, and so I ask every government to come to… Tuvalu with solutions – real solutions, not false solutions – for us to ensure that we have a pathway and a way forward,” he urged.

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    Climate Change

    COP31 electrification pledge leaves out clean power commitment

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    COP31’s flagship initiative to accelerate the electrification of the world’s economy has been criticised for failing to include a commitment to produce the power from clean energy.

    Governments that sign the voluntary pledge at this year’s UN climate summit will commit to increasing electricity’s share of total energy consumption to 35% globally by 2035 in line “with pathways consistent with keeping 1.5C alive”, the text unveiled by the Turkish presidency on Tuesday says.

    While the document says that the electrification goal is “complementary to efforts to expand renewable energy and improve energy efficiency”, governments are not explicitly asked to commit to producing the extra power with clean sources and driving down greenhouse gas emissions.

    The text instead says the “use of clean electricity” will vary according to national circumstances. Fossil fuels are not mentioned by name, although the pledge cites the COP28 Global Stocktake decision, which called for “transitioning away from fossil fuels” in energy systems.

      COP31 president Murat Kurum said earlier this month that the push to make electrification more “widespread” – through measures like the rollout of electric vehicles and heat pumps – will “automatically” lead to a reduction in the use of fossil fuels.

      But many campaigners disagree, criticising the proposed pledge for failing to give an explicit signal on the fossil fuel transition.

      Lack of clarity on energy sources

      “Let’s not let electrification become the Trojan horse of our times, used to hide new fossil fuel consumption rather than promote renewable energy,” Claire Smith from civil society umbrella group Beyond Fossil Fuels said in reaction to the pledge’s publication.

      She added that the commitment will only help address the climate crisis if electrification is powered by a flexible energy system where solar and wind are complemented by enhanced grids and storage.

      The pledge’s text says that the electricity goal should be supported by “diverse and sustainable energy sources”, but it stops short of explaining what these sources are.

      Alden Meyer, an international climate policy expert and senior associate at think-tank E3G, said the details of the pledge matter to how effective it will be in helping bring planet-heating emissions down.

      “It has to be clean, and we haven’t got enough clarity on a guarantee that it will be a decarbonisation move,” he told Climate Home News.

      China’s industrial engine starts to break its fossil fuel habit

      According to an annual electricity review from energy think-tank Ember, in 2025 renewables edged ahead of coal power for the first time in 100 years. Continued growth in solar and wind pushed the share of renewables above a third of global electricity generation to just under 34%, compared with coal at 33%, it said.

      Janet Milongo, energy Transition lead at CAN International, said success cannot be measured simply by how much of the world’s final energy consumption becomes electric.

      “We must ask what generates that electricity, who has access to it, who owns the infrastructure, and whether it is helping communities transition away from fossil fuels,” she added.

      Electrification alone can’t meet climate goals

      Analysis published by the IEA on Tuesday, alongside the pledge, found that it would already be cost-effective to raise electricity’s share of global energy use from 23% today to around 33% with existing technologies, putting the COP31 goal “within striking distance”. Based on current policies, however, the share reaches only about 30% by 2035.

      Hitting the 35% target would cut fossil fuel importers’ import bills by around $400 billion a year by 2035, the IEA said. At the higher prices caused by the conflict in the Middle East, that saving rises to more than $500 billion.

      Speaking at New York Climate Week on Tuesday, IEA executive director Fatih Birol said the agency’s figures show that in 2026, about 80% of all new power plants built will run on renewables, with a few percentage points coming from nuclear power and the rest from fossils fuels. “So therefore, electrification itself will lead reduction of the [greenhouse gas] emissions,” he added.

      IEA Executive Director Fatih Birol speaks at Climate Week NYC on September 22, 2026 (Photo: Megan Rowling / Climate Home News)

      IEA Executive Director Fatih Birol speaks at Climate Week NYC on September 22, 2026 (Photo: Megan Rowling / Climate Home News)

      However, the IEA warned in its new report that electrification “by itself is not enough” to meet the world’s climate targets. It noted that, if “low-emission” sources of power continue to simply grow in line with current policy scenarios, that would be only just enough to cover the extra demand from electrification, driving a modest decline in emissions.

      Matt Webb, associate director of global clean power diplomacy at E3G, said the pledge is a “welcome signal of leadership” and can help COP31 be a “critical moment” for countries to double down on the energy commitments made at COP28.

      But to secure the full benefits of electrification, he added, it is essential that we “urgently clean up” by speeding up the rollout of renewables and developing credible national plans to transition away from fossil fuels.

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      Climate Change

      As loss and damage fund stalls, Nepal crowdfunds flood relief

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      People around the world have donated almost $90 million to a government-led campaign to help Nepal recover from its recent devastating Himalayan flood, according to a Nepali climate negotiator, even as the UN chief slammed the tiny amount of money in a new fund to deal with such disasters.

      Individuals and companies from Nepal and abroad have chipped in from $5 to “many millions” of dollars to the Prime Minister’s Disaster Relief Fund, Manjeet Dhakal, an advisor to the poorest countries at UN climate talks, told an event on Monday focused on early warning systems.

      The prompt and substantial response from the public contrasts with the slower, more limited support that is potentially on offer from the UN’s new Fund for Responding to Loss and Damage (FRLD), set up by governments to compensate developing countries for climate disasters.

      Comment: Human security relies on adapting to the world’s new climate reality

      Over three weeks have passed since Nepal’s finance and environment ministers asked the FRLD board to take an urgent decision to allocate funding to help Nepal protect people and restore essential services in the wake of the disaster, which caused around 1,450 deaths and left more than 5,000 people missing.

      “Time is of the essence,” the ministers wrote in an appeal to the FRLD on August 31, which was swiftly followed by a letter from a group of developing-country board members urging the FRLD board’s co-chairs to organise an extraordinary meeting to come up with a response.

      Loss and damage fund hesitates

      Yet, despite informal online meetings, the co-chairs have yet to convene a meeting with the power to allocate funds. The board’s next scheduled meeting begins on December 15.

      Dhakal said on Monday that the request has “received some positive response, but still there is some discussion ongoing about how to respond to that”.

      “If they can’t respond in a timely manner, then is [the fund] fit for purpose in terms of disasters that the world would be facing in the coming years? The scale and intensity of these disasters is increasing,” he said.

      With just $820 million pledged to it by rich countries and not all of that yet delivered, the FRLD has earmarked just $350 million to spend in its initial phase and without further contributions could run out of money next year.

      Because of these limited funds, and a huge number of requests for funding totalling nearly $3 billion, the FRLD has said it will only give out a maximum of $20 million to each project for now. It has yet to approve funding for any projects.

      Dhakal recently told The Nation magazine that this amount was just a “symbolic gesture”. Nepal’s government has estimated the costs of recovery and reconstruction at $4.8 billion, with homes, roads, bridges, hospitals and hydropower stations in the affected area needing to be repaired and rebuilt.

      “Ridiculously small” funding

      In a speech to the UN General Assembly on Tuesday, the body’s outgoing Secretary-General António Guterres criticised the “ridiculously small” level of funds made available by wealthy governments to the FRLD. Developed countries should “make the loss and damage fund work at scale”, he said.

      Secretary-General António Guterres speaks at UNGA (Photo: UN Photo/ Loey Felipe)

      The Portuguese diplomat told world leaders that when he travelled to Nepal three years ago, he had “sounded the alarm on accelerating glacier melt, warning that the rooftops of the world are caving in”.

      “Some dismissed it all as overstating dangers, but as tragic events have shown, impacts are arriving sooner, hitting harder, and spreading further than many anticipated,” he said.

      A recent study by scientists with the World Weather Attribution group found that climate change contributed to the rock-ice avalanche which sparked a huge flash flood along a river valley on the Nepal-Tibet border.

      Speaking at a separate event in New York on Monday, leading climate scientist Johan Rockström highlighted those findings on the role of global warming in the Himalayan disaster.

      “This will be potentially the first poster-child case of a loss and damage invoice, because here we have a proven case of a catastrophe which would not have occurred if it hadn’t been for human-caused climate change,” he said.

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