Felipe Arango
Mohamed Adow
Author’s bio: Felipe Arango is the Executive Director of Transforma. Mohamed Adow is the Director and Founder of Power Shift Africa.
The climate crisis is a stark and present reality. Europe is experiencing record heat, Nepal is suffering devastating floods, Canada is being ravaged by wildfires, and hurricanes like Beryl, Helene, and Milton are leaving destruction in their wake. The hardest hit are the poorest and most vulnerable countries, who have contributed the least to cause this chaos.
At COP28 in Dubai last year, world leaders struck historic agreements to move away from fossil fuels, triple renewables, halt and reverse deforestation, and enhance climate resilience. Yet they neglected a crucial question: who will foot the bill?
It is high time to right this wrong. COP29 presents a critical opportunity for the international community to agree on a new climate finance goal that reflects the needs of billions of people in vulnerable countries. These funds are essential for implementing developing countries’ national climate action plans, a new round of which are due next year. Without clear, long-term financing assurances, how can the world’s most climate-vulnerable countries be expected to transition to more sustainable energy sources and cope with escalating climate impacts?
Around the globe, climate-vulnerable countries bear the brunt of devastation caused by climate change. Disproportionately high death tolls from extreme weather events (91% of recorded deaths occurred in developing economies), internal displacement, and shattered supply chains are just the tip of the iceberg. Food insecurity is rising. Health systems are being pushed to the brink.
Take the Horn of Africa, where record drought has cost over $70 billion and pushed 23 million people to the edge of famine. Rising global debt and tighter financing conditions leave these countries trapped, unable to invest in climate resilience. Colombia made the bold decision in 2022 to halt new oil and gas exploration in the name of climate justice. Instead of being supported for its climate leadership, the country was slapped by the international financial system with a lower credit rating, making it even harder to fund its transition.
But these crises are not confined to vulnerable nations; the impacts of climate change know no borders. They destabilize nations, fuel conflicts, and deepen inequalities. Without action, the resulting ripple effects will affect every country — rich or poor.
To tackle this crisis, global leaders must agree on a new climate finance goal that meets the pressing needs of vulnerable countries. Wealthier nations, especially the G7, must lead in providing and mobilizing climate finance. They are historically the largest contributors to greenhouse gas emissions and have a responsibility to ensure developing countries have the resources needed to transition to clean energy and address climate impacts.
At least $1 trillion each year is necessary to help developing countries adapt to climate change, mitigate its impacts and address loss and damage. The needs of developing countries’ climate plans amount to $5.012 trillion to $6.852 trillion cumulatively through 2030, and this is an underestimate. While private finance can help, it’s public commitments that set the foundation for global trust and action.
Moreover, for vulnerable countries, this climate finance should primarily take the form of grants and highly concessional, debt-free finance. We cannot allow the climate fight to worsen unsustainable debt burdens for vulnerable nations.
Finally, it is essential to recognize that this isn’t just about money; it’s about survival. Without adequate climate finance, global inequalities will worsen, leading to rising hunger, health risks, more people being forced to leave their homes, and increased conflict over scarce resources.
Finance is where the climate fight will be won or lost. The reality is that leaders from developed nations must reconcile their historic responsibility for the climate crisis with domestic concerns. While some argue that increasing climate finance could strain budgets, this overlooks the unthinkable costs of inaction. Reaching 1.5°C could reduce global working hours by 2.2% by 2030, costing the global economy $2.4 trillion. The true cost of human suffering and the loss of nature is difficult to quantify.
The world is watching and the stakes couldn’t be higher. Will the G7 and developed nations rise to the occasion, or will they leave vulnerable countries to contend with severe climate impacts they didn’t cause?
We need bold, transformative action. We need leaders with the courage to make tough decisions. And most of all, we need solidarity — real solidarity — with those on the frontlines of the climate crisis. Alongside equity and fairness, this will form the springboard for greater ambition across all elements of climate action — mitigation, adaptation, and loss and damage.
The choice is clear, but do global leaders have the political will to make it? This isn’t just a climate crisis; it’s a crisis of global justice, and time is running out.
Image: Ludvig Hedenborg on Pexels
