Amid stalled talks on finance, adaptation and fossil fuel transition at the COP30 climate summit in Brazil’s Amazon region, governments agreed to an ambitious Just Transition package combining the strongest rights- and inclusion-based language yet seen in the UN climate process with a new global mechanism to support countries reshaping their economies.
The COP30 decision also confirmed that Just Transition must take a whole-of-society and whole-of-economy approach – covering mitigation, adaptation, loss and damage, and finance – a broad scope that observers said marked a significant step forward for the process.
Delegates described the outcome in the city of Belém as a rare convergence of political will, technical facilitation and years of groundwork by civil society and governments.
For Indian women workers, a just transition means surviving climate impacts with dignity
The decision also places stronger emphasis on the social and economic foundations of transition than many observers had expected. The text links Just Transition explicitly to poverty eradication and decent work, and recognises the need for just energy transitions as part of implementing the Global Stocktake – including the transition away from fossil fuels.
Finance provisions were also firmer than in previous drafts, with governments agreeing that support for Just Transition should prioritise grants and non-debt-creating instruments, a framing long pushed by developing countries and civil society.
Civil society kept the issue alive
The Work Programme on Just Transition, launched in 2022, remained low-profile across several COP cycles. Unions, youth networks, feminist groups, social movements and environmental organisations continued refining proposals and pushing negotiators even when political attention was limited – while activists also took to the streets across the world calling for a Just Transition.
As momentum built toward COP30, these groups began referring to their proposal as the Belém Action Mechanism – the “BAM” – signalling the level of institutional ambition they believed the process required. Alongside this sustained organising, unions stressed that Just Transition had to move beyond principles and into practice.
Key governments shifted earlier than expected
As colourful activists danced and chanted “We want the BAM!” in the COP30 conference centre, a key moment arrived on day two, when the G77+China group of developing countries came out early and clearly signalled its support for establishing a Just Transition mechanism. This leadership was widely described as the turning point that made an ambitious outcome possible.
The EU followed at the end of the first week, tabling a “bridging proposal” in the form of a Just Transition Action Plan. From that point, civil society campaigns intensified across the Global North, aimed at shifting governments that had so far resisted any new institutional arrangements.
COP30: Spain’s unions say just transition means renewing communities beyond jobs
The UK – initially identified by observers as the main hold-out – faced sustained campaigning, including an NGO sign-on letter and direct engagement with ministers. The political shift became visible inside the talks when Ed Miliband signalled support for the EU plan during the High-Level Ministerial Roundtable.
That shift extended beyond the UK. Canada, previously quiet on new institutional arrangements, began describing itself as “open to options” after targeted domestic media coverage. Australian civil society leveraged the country’s COP31 bid to draw attention to the need for coordination institutions, while NGOs in Belém maintained pressure on Swiss negotiators.
The push for the mechanism reached the highest level of the UN system. After a meeting with civil society, UN Secretary-General António Guterres added his voice of support for the mechanism and urged COP30 to operationalise a Just Transition aligned with 1.5°C.
Facilitators and ministers closed the gaps
Last year at COP29 in Baku, the Just Transition track ended without an outcome partly because no ministers were mandated to land one. Belém took a different approach: Mexico’s Alicia Bárcena and Poland’s Krzysztof Bolesta were appointed as ministerial leads and played a central role in balancing strong rights language with the institutional detail.
Technical co-facilitators Joseph Teo of Singapore and Federica Fricano of Italy were credited with producing a clear, workable draft that helped bridge divides. Delegates said its readability – unusual for UNFCCC text – helped maintain trust. UNFCCC secretariat staff supported the process with rapid revision work through the second week.
Brazil’s presidency and the significance of place
Brazil made Just Transition one of its three priorities, ensuring the track remained visible amid wider disputes.
The signal came early: at Climate Action Network’s Annual Strategy Meeting in Rio de Janeiro in February, attended by more than 170 climate justice activists, COP30 President Ambassador André Correa do Lago and COP30 CEO Ana Toni told participants that Just Transition would be a “vital” issue for COP30. The presidency also guided parties toward addressing the issue of “institutional arrangements” during the Pre-COP.
“Water is worth more than lithium,” Indigenous Argentine community tells COP30
Belém’s context also mattered. The region is a long-standing focal point for debates over livelihoods, extractivism and environmental protection, grounding negotiations in lived realities.
A symbol of this was the People’s March on the streets of Belém, with over 50,000 people participating, and thousands more across the world. The message of the Indigenous Peoples of the Amazon was clear: a Just Transition cannot be designed about them or around them – it must be shaped with them, and how transition minerals are managed is central to this.
What the decision changes
The final text sets out principles for rights-based, inclusive transitions and establishes a global mechanism to support countries in implementing these principles – elevating the mechanism to a structural component of how climate action will be delivered in the Paris Agreement era.
The agreement also reinforces the expectation that social and economic dimensions must be central to national climate plans, not appended to them.
A just transition for renewables: Why COP30 must put people before power
The work starts now
Civil society will remain closely engaged as the mechanism takes shape, arguing that its effectiveness will depend on whether it reflects the realities facing workers, communities and families in transitions already underway.
The next phase will hinge on the operational details governments agree in the months ahead. Key questions include the design of the committee, what form secretariat support will take, and whether civil society and trade unions will have a formal seat in its work.
Parties will also need to decide whether the mechanism should help convene a wider network of practitioners. Its first workplan, the identification of support needs, and clarification of how it will interact with existing UNFCCC bodies, will shape how effective it becomes – with decisions expected at COP31.
The post How Belém launched the Just Transition mechanism appeared first on Climate Home News.
https://www.climatechangenews.com/2025/12/10/how-belem-built-a-new-just-transition-mechanism/
Climate Change
‘Don’t waste this moment’: Pre-COP must back Pacific priorities; respond to the urgency of the climate crisis
NADI, FIJI Sunday 4 October 2026 — As leaders and delegates gather for the Pacific Pre-COP in Fiji and Tuvalu, Greenpeace Australia Pacific is calling on the Australian government to uphold Pacific priorities on fossil fuels and climate finance, and respond to the urgency of the climate and energy crisis by accelerating the just transition away from fossil fuels.
The Pre-COP meeting in Fiji and atoll nation Tuvalu is an important milestone on the road to the COP31 climate summit in Türkiye, where Climate and Energy Minister Chris Bowen will take the reins as President of Negotiations. But another coal mine approval in the days before the Pre-COP has left Pacific leaders and civil society exasperated at Australia’s perceived ‘double talk’ and overshadowed the start of talks.
Speaking from Nadi, Shiva Gounden, Head of Pacific at Greenpeace Australia Pacific, said:
“This week we must focus on why the Pre-COP is so important. We must listen to Pacific leaders and communities who are sick of Australia’s double talk on climate, and want to see the actions of the most polluting nations respond to the urgency and scale of the crisis we face.
“Every cyclone, every storm blows with the deadly force of accumulated emissions and gives a warning of what is to come. The Pacific must not become a sacrifice zone for major polluters and fossil fuel corporations.
“1.5°C remains the scientific, moral and legal temperature limit. The landmark Pacific-led ICJAO ruling is clear — continuing down the fossil fuel path, and failing to align efforts with limiting warming to 1.5°C, is a breach of our international legal obligations. Our communities, our cultures and our very existence are under threat.
“As Australia prepares to chair the upcoming COP31 talks in partnership with the Pacific, it must do much more to turn empty rhetoric into real action to end the fossil fuel chokehold.”
Also in Nadi, Dr Simon Bradshaw, COP31 Lead and climate expert at Greenpeace Australia Pacific, said: “The Pacific Pre-COP is a critical milestone on the road to COP31. The Australian government must rise to the moment with concrete plans to accelerate the global transition away from fossil fuels, and respond to communities across the region facing soaring cost of living and the escalating impacts of the climate crisis.
“This week, the Australian government must deliver more than empty rhetoric. The Prime Minister’s recent keynote address at New York Climate Week acknowledged the urgency of the climate crisis, but failed to mention its cause, fossil fuels. Just last week we saw another new coal mine approval in Australia. This is on top of the 37 fossil fuel approvals by the Albanese Government since elected, despite recognising through the Belém Declaration that returning to 1.5°C is incompatible with new coal, oil and gas.
“At the Pre-COP, words must be matched with real action to phase out fossil fuels. We can not help decarbonise the world without action at home to halt fossil fuel approvals and phase out coal and gas exports. Don’t waste this important moment to back Pacific leadership and turn commitments into real action, including an immediate end to new fossil fuel approvals, and following other nations in developing a national roadmap away from fossil fuels.”
ENDS
Media contact: Kate O’Callaghan in Nadi on +61 406 231 892 (Whatsapp/Signal)
Climate Change
Big banks behind “net zero” alliance continued lending to coal firms
Several major banks that helped set up the UN’s now-defunct Net-Zero Banking Alliance (NZBA) in 2021 have since continued to lend money to coal companies, a new report has revealed.
Bank of America, Barclays, Citibank, Deutsche Bank and Santander were heavily involved in the NZBA and the associated Glasgow Financial Alliance for Net Zero (GFANZ) when it was launched by Mark Carney, then a UN climate envoy and now Canada’s leader, in the run-up to the COP26 climate summit in Glasgow.
Despite their involvement, data released this week shows those banks and some others did not reduce the amount of money they lent, nor the value of their underwriting, to coal activities between 2022 and 2025. Around half of the NZBA members who were engaged in coal financing over that time increased it and half cut it, according to the report by German environmental research group Urgewald.
Ana Botín, executive chair of Santander, was a member of the GFANZ CEO principals’ group and said at the time of the NZBA launch that her Spanish bank was “proud to be part of the founding members of this new alliance and to accelerate progress towards net zero”.
Since then, the report’s data documents that Santander has provided loans and underwriting worth hundreds of millions of dollars each year to coal companies, particularly American coal-power plant operators Duke Energy and the Southern Company. Santander did not respond to a request for comment.
Urgewald’s research adjusts the value of loans and underwriting provided to coal companies based on how much of a company’s revenues come from the most polluting fossil fuel. So a hypothetical $100 million loan to German utility RWE is valued at $21 million, as 21% of RWE’s revenue is from coal.
The research does not take account of whether companies are expanding their coal business or phasing it out for greener alternatives. Some banks have said their coal clients need to put in place transition plans by a certain date. Some also say that, by a certain date, they will stop lending money to clients that get more than a set percentage of their revenue from coal.
Most companies expanding coal are in Asian nations like China, India and Indonesia and are largely financed by banks from their own countries. But there are examples of NZBA founding members supporting companies that are actively prolonging the life of their coal businesses.
For example, Glencore, a Switzerland-based multinational that gets 4% of its revenue from coal, has just won preliminary regulatory approval to keep on coal mining in Australia’s Hunter Valley until 2045. Last year, the company was supported by loans and underwriting from Bank of America, Citigroup, Santander, Barclays, Deutsche Bank, HSBC and Standard Chartered.
Good and bad news
Some NZBA founding members like Swiss giant UBS have reduced their loans and underwriting for coal companies, the data suggests. Others – like Triodos and Kenya Commercial Bank – have provided no support for coal companies since at least 2021.
Urgewald researcher Hannah O’Neill told Climate Home News that “the banking sector is not moving in one direction. There is a growing divide between banks that are tightening their coal policies and reducing their exposure, and those where coal policies remain weak or where financing continues.”
Unlike the UN’s Race to Zero campaign, with which it partnered, the NZBA did not require its members to end financing for fossil fuels like coal, leading to accusations by climate campaigners that its rules were too weak.
Despite this, after Donald Trump’s re-election as US president in November 2024, several North American banks quit the alliance and the NZBA’s requirements were diluted in April 2025. After further withdrawals, the group shut itself down in October 2025.
Globally, the Urgewald report found that many banks in the European Union, Thailand, Malaysia, India and Taiwan have reduced their coal finance since governments agreed at COP26 to phase down coal power.
But with Chinese, American, Indonesian and South Korean banks increasing their support, total bank financing for the coal industry has remained broadly the same each year since 2022.
“Coal financing is not disappearing – but it is concentrating in banks and markets where coal policies are either missing or weak,” said Heffa Schücking, director of Urgewald.
Urgewald’s definition of coal companies includes firms and their subsidiaries that explore for, process, trade, transport and mine coal, or burn it in power plants to produce electricity, or manufacture equipment for the coal industry. It does not include companies that use coal to make cement or steel – and an adjustment is made to account for how much of the business model is coal-related.
Banks defend delays
At the time of publication, most of the banks named in the report for increasing their coal finance had not responded to requests for comment. But a spokesperson for Deutsche Bank pointed Climate Home News to its May 2026 announcement that it was delaying its requirement for existing clients to present it with transition plans and cut their coal exposure.
Instead of having to present these plans by the end of 2025, the bank has given them until the end of 2027. They will also have to ensure that their revenue share from thermal coal falls below half by then, the bank added. New clients need energy transition plans to access finance.
Deutsche Bank said at the time it was delaying its requirements because of the “increasingly complex regulatory environment as well as differing speeds of energy transition in various regions beyond what was anticipated by Deutsche Bank in 2023”.
Big banks’ lending to coal backers undermines Indonesia’s green plans
A spokesperson for Barclays told Climate Home News: “Many companies in this report are diversified energy or mining companies. We do not provide financing to companies that generate more than 30% of revenues from thermal coal mining or power generation, and we will phase out all financing by 2035.”
The Barclays spokesperson added: “Barclays is financing an energy sector in transition, providing finance to meet current energy needs and also financing the scaling of clean energy. Over the past three years, we have facilitated more than $300 billion of sustainable and transition finance, including billions to cleaner energy projects, and invested millions into climate tech.”
The post Big banks behind “net zero” alliance continued lending to coal firms appeared first on Climate Home News.
Big banks behind “net zero” alliance continued lending to coal firms
Climate Change
As COP31 co-host, Australia should make its polluters pay for climate damage
Harjeet Singh is the global convenor of the Fill the Fund campaign and founding director of the Satat Sampada Climate Foundation. Julie-Anne Richards is strategic campaign lead for the Make Big Polluters Pay campaign in Australia.
This year, a glacier collapse in Nepal’s Himalayan valleys swept away the lives of at least 1,500 people, with recovery costs of US$5 billion, or 10% of national GDP. But this was not a tragedy for which no one can be blamed. This was a crime with a balance sheet – one whose costs are paid by people who did nothing to cause it, and whose profits are booked by polluting corporations that did everything.
Across the Pacific, the calculation of injustice is now brutally clear. According to Oxfam Australia, the average yearly GDP loss of Pacific countries from climate disasters has increased four-fold over the last decade, reaching 14.3% of GDP. The number of Pacific people battered by climate disasters has risen by 700% in a decade. Whole villages are being packed up and moved as the sea takes the land beneath them.
Let’s look at the other ledger. This year, as climate change and an oil shock drove up the cost of living for ordinary families, Woodside – touted as “one of Australia’s biggest winners” from the war in the Middle East – reported revenues jumping nearly 30% to AUD$6 billion in just three months.
In Australia, Oxfam finds that in 2023-2024, fossil fuel corporations paid only AUD$22.8 billion in corporate income tax – just 5% of their AUD$436 billion in total reported income – while 26 out of 80, or one in every three large fossil fuel corporations, did not pay corporate income tax at all.
The polluters are not struggling to pay for the damage they cause. They are choosing not to.
This is the moral obscenity at the heart of the climate crisis: the money exists. It is simply flowing in the wrong direction. And nowhere is that clearer than in the funds the world built to protect the vulnerable, now left to languish.
Funds struggle to fill their coffers
The Fund for Responding to Loss and Damage (FRLD) has received US$2.8 billion in requests from 119 countries. And Nepal has sought an urgent US$20 million for immediate needs. Yet the Fund has only US$342 million in total to give.
The Pacific Resilience Facility – a fund the Pacific designed for itself, to prepare its own communities – sits well short of even its modest US$500 million capitalisation target. And the Adaptation Fund is running on empty. While adaptation needs in developing countries could reach US$387 billion a year by 2030, according to the latest UNEP Adaptation Gap report, the Fund’s resource mobilisation target of a modest US$300 million for 2025 fell far short, with only US$135 million pledged.
This is a matter of priorities, not of resources. For decades, the world has accepted a simple principle – the polluter pays principle – whether through the OECD, of which Australia is a member, or Europe’s carbon pricing. New York and Vermont have already passed laws to make Big Oil pay into climate superfunds, and ten more US states are moving to follow.
The idea is neither radical nor new. It’s time to make big polluters pay.
Comment: After Hormuz, Nepal and wildfires, people want action to make polluters pay
What is urgently needed is the courage to apply it to the fossil fuel corporations that have spent decades avoiding it. In November, Australia takes up the presidency of the COP31 negotiations, committing to stand shoulder to shoulder with its Pacific neighbours.
Australia, together with the Turkish COP31 Presidency, must guide and inspire progress at the upcoming climate conference, including on new climate finance pledges by developed countries (which agreed to mobilise at least $300 billion by 2035) and triple the funds available to the FRLD, the Adaptation Fund and the other UN climate funds.
Rich countries agreed to these goals two years ago at COP29. Yet, the reality is that developing countries’ need for climate finance is in the trillions annually, while developed countries continue to delay providing even what they have already committed. A clear signal recognising the importance of delivering the promised climate finance must come at next week’s Pre-COP in the Pacific, and COP31 in Antalya must go on to deliver against existing promises or risk an irreparable breakdown in trust.
Time for a climate pollution levy
Countries must also ensure funding for loss and damage takes its rightful place as the third pillar of climate finance, alongside mitigation and adaptation, in negotiations regarding the UNFCCC climate finance work programme and Article 9 on shifting finance flows towards a low-carbon, resilient world.
Australia, as President of Negotiations and as a Pacific nation, cannot ask the world to fill these funds while it lets its own coal and gas giants off the hook. Australia should not only stop approving new and expanded coal and gas mines, it should also introduce a Climate Pollution Levy on big coal, oil and gas corporations – a charge on every tonne of carbon pollution they extract and profit from. Independent analysis shows such a levy could raise tens of billions of dollars a year, and can be designed so the cost falls on the corporations, not on households.
This is not charity – it is compensation. It is the beginning of accountability. And the public is far ahead of its leaders: eight in 10 people worldwide, and a clear majority of Australians, want fossil fuel firms taxed to pay for the damage they cause.
Fossil fuel expansion threatens COP31 hosts’ credibility, experts warn
The money must go where the harm lands. A Climate Pollution Levy should feed the funds frontline communities are relying on – fully capitalising the Pacific Resilience Facility this year, replenishing the Adaptation Fund, and delivering the billions the loss and damage fund needs.
It is essential for these funds to be able to provide grant-based finance that reaches communities directly, not more loans that push drowning nations deeper into debt. With Nepal’s recovery costs estimated at around 10% of the country’s GDP, if we leave it to fend for itself without loss and damage funding, Nepal will likely be saddled with debt and could fail to recover adequately, increasing poverty and inequality.
We have heard enough empty pledges. We have watched enough funds announced with fanfare, only then to be starved in silence. The era of asking polluters politely is over. Australia, as COP31 president, has a rare chance to prove that the polluter pays principle means something and apply it to those who have profited the most.
The post As COP31 co-host, Australia should make its polluters pay for climate damage appeared first on Climate Home News.
As COP31 co-host, Australia should make its polluters pay for climate damage
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