Climate Action
Talk is Cheap, Climate Finance Isn’t
November 17, 2025
Climate finance is funding that supports projects and initiatives aimed at tackling climate change. For example, mitigation finance that supports slowing or stopping the rise in fossil fuel emissions — a primary driver of climate change — through mechanisms such as developing renewable energy infrastructure, supporting energy transition programs, and launching energy-efficient and public transportation projects. In 2023, mitigation finance comprised 94 percent of global climate financing.
Adaptation finance enables countries to respond to and manage the climate impacts they are already experiencing or expect to face — for example, strengthening infrastructure to withstand extreme weather, developing drought-tolerant crops, and improving access to climate information for better management of climate-related risks.
Together, mitigation and adaptation finance are central to global climate action. Article 9 of the Paris Agreement, outlines the climate finance obligations of developed countries to support developing countries. It set out a $100 billion USD annual commitment that was tripled at last year’s COP.
COP30, the United Nations Climate Change Conference (UNFCCC), will take place from November 6, 2025 to November 21, 2025 in Belém, Brazil. As world leaders, scientists, non-governmental organizations, and civil society gather in Belém, climate finance will be a central focus. The outcomes of these negotiations will determine whether the gap between climate ambition and climate action can be bridged — positioning COP30 as a defining moment for climate finance and global climate efforts.
Climate Finance and COP29
Climate finance was a central focus of last year’s COP29 in Baku, Azerbaijan. Held from November 11, 2024 to November 22, 2024, countries reached what was considered by some a breakthrough agreement on climate finance, establishing the New Collective Quantified Goal on Climate Finance.
Under this agreement, countries committed to tripling Paris’ finance commitment of USD 100 billion annually to USD 300 billion annually by 2035. Additionally, countries committed to mobilizing investments from the public and private sectors to USD 1.3 trillion per year by 2035. The New Collective Quantified Goal establishes the creation of the Baku to Belém Roadmap to 1.3T, which will lay out how to scale up climate finance to developing countries to reach the ambitious goal of USD 1.3 trillion. It will be presented at this year’s COP30.
Climate finance negotiations at previous conferences have also been instrumental in the global effort to fund climate action. COP27 featured the establishment of the historic Loss and Damage Fund. COP28 concluded with a historic agreement to transition away from fossil fuels, triple renewable energy, and increase climate finance for the most vulnerable.
U.S. Withdrawal From Paris
As the world’s largest economy in 2024 by gross domestic product and the largest historical emitter of greenhouse gases based on an estimate of emissions between 1751 and 2017, the U.S. has a significant responsibility to provide climate finance. Despite this, on January 20, 2025, President Donald Trump signed executive order “Putting America First in International Environmental Agreements,” withdrawing from the Paris Agreement and climate finance commitments. Under Article 28 of the Paris Agreement, the withdrawal will not take effect until January 27, 2026.
This withdrawal has profound implications for global climate finance. Under the Paris Agreement, 23 rich, developed countries — understood as Annex II countries and responsible for half of all historical carbon dioxide emissions — are obligated to provide climate finance to developing nations, including the United States. Under the Biden administration, the U.S. had significantly scaled up its climate financing — from USD 1.5 billion in fiscal year 2021 to over USD 11 billion in fiscal year 2024. This made the U.S. the largest bilateral provider of climate finance in the world. However, under President Trump’s recent executive order, much of the U.S.’s climate financing has been canceled or withdrawn — including its commitments to major international programs like the Green Climate Fund and Just Energy Transition Partnerships.
The government of the United States rescinds any outstanding pledges to the Green Climate Fund.
U.S. Secretary of State Marco Rubio wrote to U.N. Secretary-General António Guterres in a note dated Jan. 27, as reported by POLITICO
This creates a massive funding gap. The absence of American federal contributions makes climate finance goals significantly harder to achieve. The U.S. withdrawal will directly impact the poorest countries and erode international trust in the climate finance process.
Breakthroughs in Belém?
With the U.S. funding gap looming over global climate efforts, the work at COP30 in Belém becomes even more crucial as countries push forward key initiatives.
First, COP30 is set to launch the Tropical Forests Forever Facility. Spearheaded by Brazil, this proposal seeks to compensate countries for preserving their tropical forests. Second, Brazil is proposing the establishment of the Open Coalition for Carbon Market Integration, with the purpose of accelerating decarbonization and encouraging implementation of the Paris Agreement. This initiative works to align standards and connect existing carbon credit markets.
Finally, Brazil is proposing an international framework that defines the criteria for classifying projects as ‘sustainable’. This mechanism would allow the sustainability of products and economic activities to be comparable across countries through a universal standard.
These initiatives represent critical steps in operationalizing the ambitious climate finance commitments made at COP29. However, these initiatives can only succeed with proper financing. The new roadmap will include how climate finance can be scaled to the USD 1.3 trillion goal by mobilizing funding from private investors and development banks, to address the gap created by the U.S. withdrawal.
The Road Ahead
Despite the U.S.’ withdrawal, the remaining countries are still committed towards achieving their climate goals. But at COP30, we need to see the focus shift decisively from pledges to implementation. The ambitious goals established at COP29 require engagement from all sectors and coordination between governments, multilateral institutions, and private investors. The U.S.’ withdrawal complicates but does not negate the objectives of climate finance — it simply makes the work ahead more challenging and the need for international cooperation more pressing.
At COP30, world leaders must demonstrate that climate finance is not dependent on any single nation, but rather reflects a collective understanding that addressing climate change serves everyone’s interests. The world’s most vulnerable communities are depending on outcomes that match the urgency of their circumstances.
EARTHDAY.ORG has a robust presence at COP30 this year, advocating for climate education around the world. Follow us on LinkedIn to stay up to date on our activities next week.
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