Connect with us

Published

on

Avinash Persaud is special advisor to the president of the Inter-American Development Bank on climate change and an architect of the 2022 Bridgetown Initiative. Emily Wilkinson is director of the Resilient and Sustainable Islands Initiative (RESI) at ODI Global.

Many communities are vulnerable to climate shocks – from the urban poor in Brazil to smallholder farmers in Africa’s Sahel region. But few are more vulnerable than those living in Small Island Developing States (SIDS) around the world, from the Caribbean to the South Pacific.

Storms and rising sea levels present an existential risk. They can wipe out annual incomes several times over. We don’t yet know the full extent of the damage wrought on Jamaica by Hurricane Melissa – the strongest hurricane to hit the island since records began – but they are expected to run into tens of billions of dollars, and recovery will take at least a decade.

These nations are the “canaries in the coal mine”, signalling the dangers that lie ahead. In 2022, the world set out a plan to tackle the threat. Economists, nonprofits and nation states got behind the Bridgetown Initiative, spearheaded by Barbadian Prime Minister Mia Mottley.

It has historically been difficult and expensive to finance the projects many nations need to cope with our changing climate. Yet much progress has been made on the Bridgetown Initiative’s five-step plan to reform the global financial system.

Momentum builds for strong adaptation outcome at COP30 

We have seen wider adoption of pause clauses in debt arrangements aimed at taking the pressure off countries when they face disasters. These clauses were used for the first time by Grenada and St. Vincent and the Grenadines in the aftermath of Hurricane Beryl in 2024. In 2023, countries agreed to unlock $100 billion in Special Drawing Rights, an international reserve of assets held by the International Monetary Fund (IMF), scaling up states’ efforts to build resilience to climate change.

More recently, progress has been made to reduce the cost of capital and currency volatility, two other major brakes on resilience investments. Brazil, the COP30 host nation, has just launched the Eco Invest programme with the Inter-American Development Bank (IDB), which will mobilise significant new private and public finance to restore degraded rural areas, produce clean energy and create green jobs.

Closing the yawning climate finance gap

These measures have helped to close a yawning climate finance gap, but more action is needed.

Global average temperatures continue to rise, and we are close to biophysical tipping points with disastrous consequences. For many climate-vulnerable countries, investing in resilience is the best response. Climate adaptation technologies have improved substantially and countries can now build heat-ready homes and schools, while coastal defences can withstand Category 5 hurricanes like Melissa. Every dollar spent on adaptation saves up to $10 on avoided losses.

    The investments that have the greatest savings tend to be public goods, such as sea walls and flood defences, with few capturable revenues for private investors. The private sector has an important role to play in developing resilience technologies and implementing resilience investments, but 90% of the time, the public sector ends up paying.

    Many call on rich nations to provide more grant support for the climate vulnerable. But grants are shrinking, so we must consider other ways to unlock more investment.

    Climate adaptation can’t be just for the rich, COP30 president says

    First, the major players who influence debt sustainability – ratings agencies such as Fitch and Moody’s, private investors, the IMF, the World Bank and other multilateral development banks (MDBs) – could change their approach. Too often, the risks of climate shocks are priced into debt repayments without considering the opportunity to gain by making countries more resilient to them. This makes it harder for countries to do the right thing.

    Second, the most climate-vulnerable nations will need new borrowing instruments that are low-cost, long-term and flexible, for example ensuring that debt interest repayment timings can be adjusted if a disaster such as a devastating hurricane strikes.

    Because of their AAA credit ratings, MDBs like the World Bank are best positioned to help. Small island nations require an estimated $36 billion for adaptation efforts but received a fraction of that last year, and the World Bank and Inter-American Development Bank (IDB) have committed to raising their adaptation finance portfolio overall to 50% of climate finance, up from 30%.

    A man walks on a flooded road, after Hurricane Melissa made landfall, in Prospect, Manchester, Jamaica, October 29, 2025. REUTERS/Octavio Jones

    A man walks on a flooded road, after Hurricane Melissa made landfall, in Prospect, Manchester, Jamaica, October 29, 2025. REUTERS/Octavio Jones

    Third, climate-vulnerable countries are still paying a huge portion of their tax revenues in servicing debt. More can be done to break this vicious cycle, and one solution is something called a debt-for-resilience swap. That’s when a AAA-rated guarantor guarantees the debt of a climate-vulnerable country, allowing it to borrow at significantly lower interest rates. The proceeds are then used to buy back expensive debt – keeping the level of debt unchanged, but re-routing interest savings for resilience investments. Barbados, the Bahamas and Ecuador have done debt-for-climate swaps, but guarantors are in limited supply.

    Comment: Can COP30 mark a turning point for climate adaptation?

    To tackle this challenge, the IDB and other MDBs are developing the first-of-its-kind Multi-Guarantor Debt for Resilience Facility, where multiple guarantors work together to unlock more debt swaps on a larger scale.

    In these difficult times, when climate change is driving ever more dangerous and unpredictable impacts in vulnerable places, we must press forward with further reforms. Bridgetown has already channelled hundreds of billions into building stable countries with a secure future – something that benefits all of us. Now we all need to raise our adaptation ambitions.

    The post Hurricane Melissa’s destruction shows need for climate resilience push appeared first on Climate Home News.

    Hurricane Melissa’s destruction shows need for climate resilience push

    Continue Reading

    Climate Change

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

    Published

    on

    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.

      The post UN chief urges countries to adopt fossil fuel transition plans with timelines appeared first on Climate Home News.

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

      Continue Reading

      Climate Change

      COP31 electrification pledge leaves out clean power commitment

      Published

      on

      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.

        The post COP31 electrification pledge leaves out clean power commitment appeared first on Climate Home News.

        COP31 electrification pledge leaves out clean power commitment

        Continue Reading

        Climate Change

        As loss and damage fund stalls, Nepal crowdfunds flood relief

        Published

        on

        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.

        The post As loss and damage fund stalls, Nepal crowdfunds flood relief appeared first on Climate Home News.

        As loss and damage fund stalls, Nepal crowdfunds flood relief

        Continue Reading

        Trending

        Copyright © 2022 BreakingClimateChange.com