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British International Investment (BII), a UK government-owned and aid-funded company, has a portfolio of overseas fossil-fuel assets worth hundreds of millions of dollars, Carbon Brief can reveal.

In 2020, BII committed to “aligning” its “future” investments with the Paris Agreement and since then it has doubled its renewable-energy funding.

But, as of 2023, the last year for which data is available, it also still had a large portfolio of gas-fired power plants across Africa and south Asia.

Multiple freedom of information (FOI) requests by Carbon Brief reveal fossil-fuel energy and related projects worth nearly $700m (£526m) on BII’s books, which represents about 6% of its assets in 2023.

The FOI results also show that, at the end of last year, BII still had $70m (£53m) of unspent funds earmarked for foreign fossil-fuel companies in the coming years.

BII has not breached its own investment guidelines and says its fossil-fuel exposure fell further in 2024 as it aims to “manage and responsibly exit” these assets.

However, MPs and campaigners have criticised BII’s legacy fossil-fuel investments for “conflicting” with UK climate goals and diverting increasingly scarce aid resources.

Climate pledge

BII is the UK’s development finance institution (DFI), a publicly owned, for-profit company that invests in businesses in developing countries.

These investments are meant to promote economic development, especially via projects – including new energy infrastructure – deemed “too risky” for private investors.

BII largely supports itself using financial returns from its existing portfolio, which was worth approximately £7.3bn ($9.2bn) in 2023.

However, the UK government has also provided BII with billions of pounds from its aid budget. This support has grown even amid massive cuts to UK aid, with BII receiving an extra £400m last year due to reduced government spending on housing asylum seekers.

The government has also been leaning more on BII to reach its international climate finance goals.

Despite being wholly owned – and partly funded – by the Foreign, Commonwealth and Development Office (FCDO), BII has an “arm’s length” relationship with the UK government and makes its own investment decisions.

In 2020, the previous Conservative government committed the UK to ending new overseas fossil-fuel funding beyond March 2021.

This came after BII – then known as CDC Group – had pledged in its 2020 climate strategy that it would not make any new investments that were “misaligned with the Paris Agreement”, based on a Task Force on Climate-related Financial Disclosures framework.

Then-chief executive Nick O’Donohoe stated that the climate strategy would “shape every single investment decision we make moving forward”.

This was hailed as an end to fossil-fuel financing by the institution, despite some remaining “loopholes”. Notably, its fossil-fuel policy allowed for new investments in gas projects if they were deemed “consistent with a country’s pathway to net-zero by 2050”.

Since making its pledge, BII has repeatedly come under fire from MPs and campaigners for continuing to hold “active investments” in fossil-fuel companies.

Fossil assets

BII says that its fossil-fuel portfolio, which mainly consists of gas-fired power plants in “power-constrained” African nations, “has been on a steady downward trajectory since 2020”.

However, the company has not released data on the value of its fossil-fuel assets since 2021, citing “commercial sensitivities”.

In September 2024, Carbon Brief filed an FOI request with BII to obtain data on the company’s fossil-fuel and renewable-energy investments, as well as their asset value.

Following more than six months of back-and-forth – including Carbon Brief requesting an internal review of its FOI request – the company provided much of the information that was originally requested at the end of March 2025.

This included annual data on projects that BII has already committed to support, such as the Sirajganj 4 gas plant in Bangladesh and the Amandi Energy gas plant in Ghana.

As the chart below shows, BII’s cumulative commitments to fossil-fuel companies have remained roughly the same since its climate strategy in 2020. This is in line with its pledge to provide no “new commitments” to most fossil-fuel projects.

One exception is an extra $20m (£15m) in 2021 for Globeleq, a company controlled by BII that primarily supports gas power in Africa. An investment in a Mozambique gas project that year by Globeleq was deemed “Paris-aligned” and, therefore, allowed under BII’s rules.

Meanwhile, BII’s total commitments to renewable energy projects have more than doubled, from $894m (£672m) to $2.1bn (£1.6bn), between 2020 and 2024.

British International Investment has more than doubled
Total cumulative commitments to fossil-fuel energy projects and renewable energy projects by BII, 2020-2024. “Commitments” represent the amount that BII has contractually committed to invest in a particular company or project. The full amounts may not have been “drawn down” by the companies in full. Source: Data obtained by Carbon Brief from BII via FOI.

Once funds have been “committed”, they can remain “undrawn” for many years. This means that money committed before 2020 can still be distributed without breaching BII’s pledge. Carbon Brief asked BII how much of these “commitments” remained undrawn each year.

This revealed that BII has continued sending money to fossil-fuel projects since its 2020 pledge, disbursing around $57m (£43m) over this period. At the end of 2024, there was still $67m (£50m) of “undrawn” fossil-fuel finance waiting to be spent.

BII tells Carbon Brief that, as “commitments” are legal contracts, it is obliged to provide these funds as and when they are required.

Beyond “direct” investments in energy projects, BII has also made “indirect” commitments to fossil fuels via private financial institutions. The company tells Carbon Brief it does not have details of how much these third-party funds invest in fossil-fuel projects.

Daniel Willis, finance campaign manager at the NGO Recourse, points to examples such as Gigajoule and Ademat, companies that have received new finance injections for fossil-fuel projects beyond the 2020 date, on BII’s behalf. (Again, this is allowed under BII’s guidelines.)

Willis tells Carbon Brief that these investments and the continued payments from existing commitments “clearly go against the spirit of the UK government’s fossil fuel policy”.

BII initially rejected Carbon Brief’s request for the “net asset value” of every fossil-fuel investment in its portfolio. It argued that disclosure could weaken its commercial position.

However, the company eventually agreed to disclose the aggregate value of its fossil-fuel assets for the period 2020-2023.

The data reveals that, as of 2023, BII still owned $591m (£444m) worth of gas-fired power plants and other fossil-fuel energy assets, rising to $676m (£508m) when indirect assets are included. This amounts to around 6% of BII’s assets.

While BII declined to provide Carbon Brief with the 2024 figures, a company spokesperson tells Carbon Brief that they plan to release them “this summer”, adding:

“Our 2024 annual report and accounts…will show that our exposure to fossil-fuels assets has fallen 39% since 2020 and now makes up just 6% of our total portfolio. Over the same period, the value of our climate-finance portfolio has increased by 122% to $2.5bn [£1.9bn] and now accounts for 26% of our total portfolio.”

As the chart below shows, there has already been a gradual drop in the value of BII’s direct fossil-fuel energy investments since 2020. The decline can likely be attributed to investees paying off debts to BII, fossil-fuel assets losing value and – to some extent – BII exiting smaller investments.

British International Investment still owns fossil-fuel assets
Annual aggregated fossil-fuel net asset value of “direct” fossil-fuel energy investments (blue) and combined “indirect” and “other carbon-related” assets (grey). Net asset value is the sum of assets minus any liabilities. Indirect assets are those from investments via third-party institutions and other carbon-related assets include support for the trade in fossil fuels (2020 and 2021 only), plus indirect investments in companies outside the direct energy value chain, but which primarily or exclusively serve fossil-fuel energy actors. Source: Data obtained by Carbon Brief from BII via FOI.

With evidence that BII’s fossil-fuel portfolio is declining in value, Sandra Martinsone, policy manager at the international development network Bond, tells Carbon Brief that “sooner or later” these will likely become stranded assets:

“The longer BII holds on to these fossil-fuel investments, the higher the risk of losing the invested aid pounds.”

The drop in the value of BII’s indirect fossil-fuel and “other carbon-related” assets – which includes non-energy companies that serve fossil-fuel companies – has been sharper. This can be largely attributed to BII ending support for fossil-fuel trade and supply chains in 2022.

‘Worrying trajectory’

In its FOI response, BII says that it “seeks to manage and responsibly exit fossil-fuel assets”. However, NGOs and politicians have raised concerns about the pace of change.

Natalie Jones, a policy advisor specialising in fossil-fuel phaseout at the International Institute for Sustainable Development (IISD), tells Carbon Brief that while BII has not breached its own climate guidelines:

“The fact that fossil fuel investments remain on BII’s books is not a good look for the organisation, bearing in mind its 2020 commitment to aligning its activities and investments with the Paris Agreement and the UK’s 2021 policy to end all international public support for fossil fuels.”

Civil-society groups have repeatedly called for BII to set a timeline for divesting from fossil fuels. They have even argued that, in the context of “drastic” UK aid cuts, BII should not receive more aid funding and instead reinvest funds from some of its existing assets.

Criticism of BII’s approach to fossil fuels is captured in a 2023 report by the International Development Committee of MPs. It refers to BII legacy investments “conflicting” with UK policies, including the alignment of all aid with the Paris Agreement.

The report also notes that there “does not appear to be a definitive path for BII exiting those fossil-fuel investments or transitioning its existing investment portfolio to green energy”.

Committee chair and Labour MP, Sarah Champion, says that, while the most recent data is not yet publicly available, the figures released to Carbon Brief point to a “worrying trajectory” in BII’s fossil-fuel investments. She tells Carbon Brief:

“It appears that BII has stayed on this worrying trajectory. This must change: as the government proposes a new strategic direction for UK aid spending, focusing on poverty reduction and genuinely responsible investment must be BII’s number one priority.”

In a statement alongside its FOI response, BII says that “forced divestment increases the likelihood that buyers of such assets would be less responsible owners, thereby increasing the future risk of negative climate impact”.

It also says that “being viewed as a forced seller” could reduce the value BII could obtain from those assets. This position was supported by the previous Conservative government.

Jones tells Carbon Brief that concerns about the responsibility of new owners are legitimate:

“However, it would be great to see from BII a plan to responsibly exit or, even better, decommission their fossil fuel assets. There is a case to be made for a responsible exit that would free up funds for much-needed climate finance.”

BII argues that, with around 600 million Africans still lacking access to electricity, gas power remains “essential” for providing “baseload” power to many nations on the continent.

This position has been supported by a number of African governments. However, many civil-society groups, both in Africa and around the world, argue that developed countries should focus financial resources on expanding clean power capacity in developing countries.

Nick Dearden, director of Global Justice Now, which has previously questioned the legality of the BII-controlled Globeleq supporting gas power in Africa, tells Carbon Brief it is “inappropriate” for aid money to be spent this way:

“It’s also trapping the countries that are building this stuff into a type of energy which is on its way out.”

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Fossil fuel expansion threatens COP31 hosts’ credibility, experts warn

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Türkiye and Australia risk losing their credibility as hosts of this year’s COP31 UN climate summit if they keep betting on fossil fuels at home, climate policy experts have warned. 

As governments are expected to continue fraught talks over how to advance the global transition away from oil, coal and gas in Antalya this November, both of the co-host countries are pursuing fossil fuel expansion at home, without a national timeline to phase out their use.

Türkiye has accelerated its rollout of wind and solar energy in recent years. But that progress has yet to make a dent in the country’s dependence on fossil fuels for power, as demand growth has outpaced the renewables build-out, new analysis by Climate Action Tracker (CAT) has found.

The share of electricity generated by burning coal and fossil gas – 56% in 2025 – has barely changed since 2019, and total fossil fuel use in the power sector, and the emissions it produces, are still rising, according to the report released on Friday.

The Turkish government has also signalled that fossil fuels will remain a central component of its energy mix and has outlined plans to expand the country’s burgeoning domestic gas production in the Black Sea.

‘Need to demonstrate seriousness’

Australia, which will chair the Antalya negotiations, relies on fossil fuels for over 60% of its electricity, with coal alone still supplying 45%. According to experts, it lacks an ambitious plan to shift away from fossil fuels at home, relying heavily on carbon offsetting to reach its climate targets.

Australia is also the world’s third-largest fossil fuel exporter and has plans to expand its coal and gas production, which is backed by significant government subsidies. It recently upset climate groups by approving an extension of the Saraji open-cut coal mine in Queensland.  

Türkiye says it has “final decision” at COP31 despite Australia running negotiations

Jennifer Morgan, a senior fellow with the Fletcher School of Law and Diplomacy at Tufts University and former climate envoy for Germany, said Türkiye and Australia need to demonstrate their seriousness about their COP presidency roles by leading by example on the energy transition.

“They have made progress in renewable energy,” she told reporters this week. “But I think their credibility – and their ability to therefore bring momentum and good outcomes to the COP – will depend on their taking further action at home.” 

Türkiye’s electrification homework

The co-hosts’ fossil fuel policies are being scrutinised in the run-up to the annual UN climate summit, with much riding on the signal climate diplomacy sends on the energy transition.

Türkiye has so far stopped short of putting any overt political capital behind the fossil fuel transition itself. It has instead been rallying support for a new global electrification target of 35% by 2035, seen as the centrepiece of this year’s non-negotiated Action Agenda put forward by Ankara.

Electrification emerges as COP31 priority

COP31 president Murat Kurum said last week the push to electrify economies – through measures like electric vehicles and heat pumps – will “automatically” lead to a reduction in the use of fossil fuels.

Türkiye’s own energy plan projects the country’s electrification rate would fall short on the global target and only hit 25% by 2035, according to the CAT report, which called for a “substantial step-change” in electrification policies and the deployment of more renewable power and grid infrastructure. 

Coal still dominant

CAT’s analysts also warned that, without a parallel phase-out of fossil fuels, rising electricity demand risks being met in part by coal and gas, failing to deliver the emissions reductions the electrification target is meant to achieve. 

Türkiye has had some success in its clean energy build-out: the share of electricity generation from wind and solar rose to 22% in 2025, up from 12% in 2020, according to the CAT report.

But coal’s role in Türkiye’s electricity mix has also grown, in both its share and absolute terms, over the past decade. And while reliance on fossil gas has declined overall, it still plays an important role in Ankara’s energy policy, which is pushing to boost domestic gas production in the Black Sea.

Pilot boats assist the Osman Gazi as it navigates the Bosphorus on its way to the Black Sea on May 29, 2025 in Istanbul, Turkey. The platform will dock at the Filyos Port in the Black Sea and will stay for a 20 year mission and will provide double the natural gas intake of Turkey to 20 million cubic meters per day. (Photo by Chris McGrath/Getty Images)

Pilot boats assist the Osman Gazi as it navigates the Bosphorus on its way to the Black Sea on May 29, 2025 in Istanbul, Turkey. The platform will dock at the Filyos Port in the Black Sea and will stay for a 20 year mission and will provide double the natural gas intake of Turkey to 20 million cubic meters per day. (Photo by Chris McGrath/Getty Images)

Dr Niklas Höhne from the NewClimate Institute said the government could demonstrate leadership as COP31 president by building on its recent successes in increasing its renewable energy capacity and announcing targets and plans to phase out coal and gas ahead of the summit.

According to CAT, Türkiye should phase out coal by 2040 and fossil gas by 2045 at the latest to align its power sector with global efforts to limit the rise in global temperatures to 1.5C above preindustrial times. 

Türkiye quiet on fossil fuel roadmap

Ümit Şahin, coordinator of climate change studies at the Istanbul Policy Center (IPM), said Türkiye’s strategy is to approach the fossil fuel debate exclusively from the “end-use point of view”.

“I don’t expect any push from the Turkish presidency to the producer countries in terms of fossil fuel production,” he told reporters.

Neither does Şahin believe the Turkish presidency will throw its political weight behind another big-ticket item for COP31: a new global roadmap to transition away from fossil fuels. 

Brazil took on the responsibility to voluntarily draft this document outside of the formal negotiations as a way to break the deadlock at last year’s UN summit in Belém when governments clashed over whether to develop one. 

The outgoing COP30 presidency will deliver the roadmap in early November – but it will be up to Türkiye and Australia to guide countries towards a decision on how the blueprint will be taken forward, either inside or outside the negotiations.

Leadership needed

Australia’s Chris Bowen, COP31’s president of negotiations, promised to lobby producing countries to deliver a “meaningful step forward” on the fossil fuel transition in an interview with The Guardian earlier this year. But he has been quiet on the role Australia sees for the fossil fuel transition roadmap. 

Natalie Jones, senior policy advisor at the International Institute for Sustainable Development (IISD), said the COP31 co-presidents “must provide clear leadership” on this process.

“This roadmap cannot be left in a dusty drawer,” she told journalists. “Rather, it must be translated into action, with all countries identifying what elements they can adopt or develop in their own national roadmap.”

    Like Türkiye, Australia has yet to produce a national blueprint for winding down coal, gas and oil. Rather than moving toward a phase-out, state and federal governments have kept expanding fossil fuel licensing over the past year, according to a new analysis published this month by Climate Analytics.

    Under existing policy, both coal and gas are on track to remain in Australia’s power system as late as 2050 – a trajectory the report defines as incompatible with the 1.5C limit the country says it’s committed to. 

    No binding end dates for the Netherlands

    Analysts are watching out for national transition roadmaps as a bellwether for governments that claim to be leaders in the global shift away from fossil fuels.

    The climate and environment ministers of Colombia and the Netherlands, which are co-hosting the Santa Marta conference, embrace on the podium during the high-level segment in Santa Marta, Colombia, April 28, 2026 (Photo: Colombia Ministry of Environment and Sustainable Development)

    The climate and environment ministers of Colombia and the Netherlands, which are co-hosting the Santa Marta conference, embrace on the podium during the high-level segment in Santa Marta, Colombia, April 28, 2026 (Photo: Colombia Ministry of Environment and Sustainable Development)

    The Netherlands, which co-hosted the first fossil fuel transition conference in Santa Marta this year, published its own domestic roadmap earlier this week. The document followed through on a pledge that “leadership on transitioning away from fossil fuels must be backed by concrete action, not just ambitious words”, said a spokesperson for Stientje van Veldhoven, the Dutch minister for climate policy.

    But experts criticised the plan for failing to set a binding end date for the country’s fossil fuel production and use. While targeting a rapid increase in renewables capacity, the Dutch government only commits to phasing out oil, gas and coal “in the energy and feedstock system to eventually zero, and to minimise fossil use” by 2050. 

    Yvo de Boer, a former Dutch diplomat and executive secretary of the UN climate body, said the Dutch roadmap falls short of what’s needed to give industry the confidence to deploy capital in support of the energy transition with greater predictability. 

    “Ultimately, a roadmap without deadlines is nothing more than a footpath paved with good intentions,” he added, writing on LinkedIn. 

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    How clean energy can boost business for Africa’s food producers

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    Despite millions of dollars in grants and technical help for African businesses to power farming and other food production activities with renewable energy, most efforts remain stuck at the early stages because they struggle to find the investors, markets and expertise they need to grow.

    This was the message from a coalition of global institutions working on energy, water and agriculture at this month’s Africa Food Systems Forum in Kigali, Rwanda.

    “Energy, agriculture, water and nutrition actors rarely design solutions together,” the Agri-Energy Coalition said in a Call to Action on powering food systems with clean energy.

    Using more renewables – especially solar power – to drive food systems would reduce food losses, ensure year-round availability and affordability of healthy foods, and improve productivity, income and resilience among farmers, food processors and other small enterprises, the coalition added.

    In an interview with Climate Home News at the forum, Olamide Niyi-Afuye, CEO of the Africa Minigrid Developers Association (AMDA) – a body representing private-sector developers of small-scale, off-grid electricity systems across the continent – said its members are starting to recognise this interdependence and are increasingly considering businesses that combine energy with agricultural activities.

      This, Niyi-Afuye added, could lead to greater supply and use of clean power for key processes like irrigation, food processing and storage, creating new sources of revenue for both sectors.

      CHN: Conversations at the Africa Food Systems Forum highlighted how organisations working in energy and agriculture often operate in silos. What has hampered their collaboration, and how has that affected Africa’s economic development?

      A: Most mini-grid companies in Africa were primarily incentivised to achieve connections. If you look at some ongoing projects, you see a cost-per-connection model [of revenue]. When a subsidy is tied to achieving a connection, regardless of whether it is a productive connection, you might not notice the problem until five years down the line, when you realise the cash flows are not what you projected.

      Despite African walkout, fractious land COP ends without drought deal

      So now we’re in a “come-to-Jesus moment” as an industry, where we’re righting the wrongs and adjusting our business models to make sure companies do not go bust and there is some level of sustainability over the long term.

      The saying is not wrong that we’ve been working in our own silos because we’ve focused on the smaller things instead of the helicopter view. There needs to be cross-pollination [between the energy and agriculture sectors] because, if we are thinking about industrialisation, energy is a key driver of industrialisation. We will not achieve that if we’re not in the room and part of those conversations.

      CHN: Productive use of energy is intended to ensure electricity access goes beyond lighting homes to improving livelihoods, creating jobs and powering equipment. But what happens when farmers cannot afford the equipment they need to do that? How can energy, agriculture and equipment players work together to make the transition more accessible?

      A: That’s why we’re having conversations with companies set up to de-risk the agriculture sector. By leveraging that connection, we’re able to aggregate potential energy needs and develop instruments that make equipment more affordable through bulk procurement.

      We can have arrangements that make it easier for farmers and food producers to lease equipment and eventually own it over a period. There’s no real pressure to recover the capital very quickly because you’re looking at scale.

      Rice farmer Danjuma Okuwa adjusts his newly installed electric rice milling machine at his compound in Rukubi, Nasarawa, Nigeria, September 27, 2022. (Thomson Reuters Foundation/Afolabi Sotunde)

      Rice farmer Danjuma Okuwa adjusts his newly installed electric rice milling machine at his compound in Rukubi, Nasarawa, Nigeria, September 27, 2022. (Thomson Reuters Foundation/Afolabi Sotunde)

      There is a whole lot across the agricultural value chain that needs energy, from farming and harvesting to food processing and value-addition. We need to understand the energy needs across the value chain and bring our members in to provide solutions.

      Developers do not necessarily need to provide every productive-use solution themselves. They can partner with equipment suppliers, financiers, agribusinesses and other service providers to enable customers to use electricity productively. The objective is simple: do not just electrify communities; enable economic activity that uses that electricity.

      CHN: When Africa’s industrialisation is discussed, you hear things like renewables cannot provide enough baseload, while some food processors are sceptical about switching to renewable energy because of these concerns about reliability. What is your response?

      A: It’s not a controversial statement to say that a typical baseload is usually from the grid, and it’s usually from multiple sources including renewable energy. For large-scale operations, we can look at blending multiple sources of energy. But how do we solve the problem of a mid-sized farmer? We can solve it with a mini-grid using renewable energy.

      Comment: Every country needs a model to help optimise its energy transition

      If you go to a small farmer in a rural area, they don’t care about what source of energy they’re getting. They just want something that can help them get from A to B. If you look at the direct energy needs of farmers and food processors, I’m sure 90 percent of their consumption can be solved by renewable energy. Let’s start with that problem first. Then, as they scale, they might need to ramp up, and we can start talking about a bigger baseload.

      CHN: How much agricultural value is lost because farmers and food businesses lack reliable, affordable electricity?

      A: If you look at, for example, the fact that we need to maybe plant tomatoes or strawberries in Jos before it gets to Lagos [Nigeria], which most likely is by road, I can assure you that a good chunk, if not stored properly, would be bad by then. So the fact that we do not have energy is in itself a lost opportunity to maximise the potential of the agriculture sector. So until we’ve solved the energy problem, we will not salvage waste – and for me that is a lost opportunity.

      CHN: AGRA, an institution focused on scaling agricultural innovations to help smallholder farmers, estimates a massive shortfall between current investments in the continent’s food systems and what is actually needed to build a resilient, profitable agricultural economy – to the tune of $180 billion per year. Can integrating energy into food systems help bridge that gap?

      A: Yes – if energy can help unlock the potential to earn more money, investors will follow the money. Investments go where there is certainty, and until there is certainty around cash flow and revenue, investment will be limited.

      My vision is to see more Power Purchase Agreements (PPAs) being signed between energy players and the agriculture sector. We can start by getting people into the room, understanding their pain points, crafting a framework and documentation that works for both parties, and then seeing deals happen.

      This interview was shortened and edited for clarity.

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      Climate Change

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

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      Cristina Rumbaitis del Rio is a senior advisor on adaptation and resilience with the United Nations Foundation and Mattias Söderberg is global climate lead at Danish NGO DanChurchAid.

      Recent extreme events – from wildfires and heatwaves in Europe to flash flooding following a glacier collapse in Nepal – have shocked and devastated communities, bringing years of warnings about such climate impacts to the doorstep of communities around the world.

      One thing is certain: the new climate reality is here – and the adaptation strategies designed for yesterday’s world are no longer sufficient.

      Attribution science has since shown that the hotter and more frequent heatwaves we’re experiencing around the world would have been virtually impossible without today’s high concentrations of greenhouse gases in the atmosphere. Climate shocks are now so severe that they reverberate through supply chains, food and water systems, financial markets and the movement of people.

        They must be a catalyst for a new way of thinking about adaptation and resilience, and how we finance solutions that work. A failure to invest in adaptation in one region can create costs far beyond it, which is why the concept of shared resilience is critical for leaders to grasp.

        Investment not charity

        At the UN General Assembly (UNGA 81) this month, leaders have an opportunity to translate today’s urgency into concrete commitments on adaptation and loss and damage finance ahead of COP31.

        Those commitments are needed to underpin global stability, shared prosperity and human security. Governments should use this moment to show what a new response looks like: finance that reaches communities faster, supports locally grounded solutions, strengthens national systems, and helps countries prepare before the next shock arrives.

        If we want sustained economic growth, food and water security, and resilient and prosperous societies across every region, adaptation must be at the heart of today’s development and security agenda. It cannot be just a future planning consideration or a narrow issue for climate ministries. Adaptation is now everyone’s business – and it must be financed fast and fair.

        UN Secretary-General António Guterres has repeatedly framed climate finance as an investment rather than charity, warning that “a world in climate chaos cannot be a world at peace” and describing human security as freedom from the chronic and sudden disruptions that climate change multiplies.

        What’s more, adaptation delivers a real return-on-investment, with researchers estimating that every dollar invested produces $10 in benefits, saving lives, protecting livelihoods, and reducing the costs of future disasters.

        Hitting adaptation limits

        The urgency to scale adaptation systematically is growing. The newly released “Limiting Overshoot” report from the UN Environment Programme (UNEP) confirms what scientists have long warned: exceeding global warming of 1.5C is now unavoidable under current policies. Yet, how high temperatures rise – and how long the world remains above the 1.5C threshold – will determine whether communities, economies and entire ecosystems can keep pace.

        There are limits to adaptation. When we breach those limits, lives and livelihoods are lost, and people and ecosystems suffer greatly. We cannot simply build yesterday’s infrastructure a little stronger and assume it will be enough.

        Nepal flood destruction shows “limits to adaptation”, scientists say

        We need to fundamentally change the systems that determine how societies anticipate, absorb and recover from both immediate and evolving non-linear climate shocks. This includes transforming physical systems, such as infrastructure, and the governance systems that affect where and how we live to how we maintain our health and wellbeing.

        Finance today is nowhere near the scale of the challenge.

        The UNEP “Adaptation Gap Report 2025” estimates the shortfall in adaptation finance in developing countries at $284 billion–$339 billion a year – roughly 12 to 14 times current international public flows of around $26 billion. That gap is a development, economic and human security problem, especially for the most vulnerable populations who have contributed the least to causing the climate crisis.

        Building resilience into financial systems

        There are already signs of what a more systemic adaptation response could look like. Communities around the world are delivering practical solutions at local level, even as adaptation finance remains notoriously, and appallingly, difficult to access. Cyclone-resistant homes, local forecasting capacities, drought-resistant crops, heat insurance for pregnant informal workers and mangrove restoration are rooted in local knowledge and lived experience, while delivering benefits far beyond the communities where they originate from.

        But local innovation alone is not enough; the systems around it need to be resilient too.

        Jamaica offers one example. The country has built a multi-layered disaster-risk financing framework, including a catastrophe bond and contingency funds, through sustained fiscal discipline and proactive investment. Its debt-to-GDP ratio fell from around 147% in 2012 to around 62% in 202-25. That groundwork matters when disaster strikes.

        Hurricane Melissa’s destruction shows need for climate resilience push

        Following Hurricane Melissa, Jamaica was able to secure billions of dollars in reconstruction financing from multilateral banks – finance that might otherwise have been much harder to access. The lesson is clear: resilience can be built into the financial architecture of a country before a crisis arrives. That is the shift we now need to make at scale.

        The foundations already exist – in Kingston’s fiscal reforms, in early-warning systems from the Sahel to the Pacific, and in every community that adapted before disaster struck. What is still missing is the political will, and the finance, to take what works and put it to work everywhere, at the speed our world’s new climate reality demands.

        To hear more on this issue from high-level officials and experts, sign up for this event during Climate Week NYC, at 8am EDT on September 24 (in person or online), moderated by Climate Home News Editor Megan Rowling: Adapting to the New Climate Reality: Why Accelerating Impacts Demand New Responses.

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