Funding adaptation and mitigation projects globally with climate finance

As I sit in my office in Nairobi, overlooking a city grappling with the realities of climate change, I cannot help but reflect on the global challenge of financing our fight against this existential threat. Climate finance – the money needed to fund adaptation and mitigation projects worldwide – is not just a matter of numbers on spreadsheets. It is about survival, equity, and the future of our planet. 

Climate change does not respect national borders. Its impacts are felt globally, but not equally. Here in Kenya, we are experiencing prolonged droughts that threaten our food security, while our coastal regions face the looming spectre of rising sea levels. Yet, like many developing nations, we have contributed relatively little to the greenhouse gas emissions driving this crisis. 

This disparity lies at the heart of the climate finance challenge. Developed countries, which have historically been the largest emitters, have pledged to mobilize $100 billion annually to support climate action in developing nations. It is a commitment rooted in the principle of “common but differentiated responsibilities” – a recognition that while climate change affects us all, some nations bear a greater responsibility for addressing it. 

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However, the reality of climate finance often falls short of these lofty promises. The latest figures show that we are still far from reaching the $100 billion goal. Moreover, the funds that do materialize are often skewed towards mitigation projects in middle-income countries, leaving the least developed nations – often the most vulnerable to climate impacts – struggling to access the resources they desperately need for adaptation. 

In Nairobi, we have seen firsthand the transformative potential of well-directed climate finance. The Green Climate Fund, for instance, has supported projects to enhance the climate resilience of our water sector. This initiative is not just about infrastructure; it is about ensuring that communities have reliable access to water even as climate change alters rainfall patterns. It is a prime example of how climate finance can address both environmental and social needs simultaneously. 

But for every success story, there are countless projects still seeking funding. From small-scale community adaptation initiatives to large-scale renewable energy projects, the need for climate finance far outstrips the available resources. This funding gap is not just a challenge for developing nations. It represents a global failure to invest in our collective future. 

Addressing this shortfall requires innovative thinking and a multi-faceted approach. Public finance from developed nations remains crucial, but it is clear that government funds alone will not be sufficient. We need to leverage private sector investments, explore novel financing mechanisms like green bonds, and ensure that existing funds are used as efficiently as possible. 

The role of multilateral development banks and climate funds is also evolving. These institutions are increasingly looking to ‘blend’ finance – using public funds to de-risk investments and attract private capital. While this approach has potential, we must ensure that it does not come at the expense of support for vital adaptation projects that may not offer clear financial returns. 

Transparency and accountability in climate finance are equally important. Too often, funds get lost in a maze of intermediaries or are counted multiple times, inflating the apparent flow of resources. We need robust tracking systems to ensure that climate finance reaches its intended recipients and delivers real impact on the ground. 

Here in Kenya, we are also exploring domestic sources of climate finance. Our National Climate Change Action Plan includes provisions for a climate fund, recognizing that while international support is crucial, we must also mobilize our own resources. It is a balancing act, as we strive to meet immediate development needs while also investing in long-term climate resilience. 

As we look to the future, climate finance must evolve. We need to move beyond the notion of aid and towards a model of true partnership in addressing this global challenge. This means not just increasing the quantity of finance, but improving its quality – ensuring it is predictable, accessible, and aligned with the priorities of recipient countries. 

Moreover, we must broaden our understanding of what constitutes climate finance. It is not just about funding specific projects, but about reshaping our entire economic system to be sustainable and resilient. This includes phasing out fossil fuel subsidies, pricing carbon effectively, and aligning financial flows with climate goals across all sectors. 

The task before us is immense, but the cost of inaction is far greater. Every dollar invested in climate adaptation can save several dollars in future damages. Every renewable energy project funded brings us closer to a sustainable future. Climate finance is not charity – it is an investment in our collective survival and prosperity. 

As I look out over Nairobi, I see a city full of potential, striving to grow sustainably in the face of climate challenges. Our experience here, mirrored in cities and rural areas across the developing world, underscores the urgent need for a revolution in climate finance. It is time to turn pledges into action, to bridge the gap between needs and resources, and to ensure that no community is left behind in our global fight against climate change. 

The future of our planet hangs in the balance. With the right approach to climate finance, we can tip the scales towards a more sustainable, equitable, and resilient world. It is not just a matter of funding – it is a test of our collective will to secure a liveable future for generations to come.