Search Climate Insights Directory

The 2022 Forest Declaration Assessment finds that the world is not on track to meet its 2030 forest goals. While some progress is noted in Tropical Asia, global forest loss remains high, and funding is critically insufficient, reaching less than 1% of the estimated annual requirement. The report emphasizes that voluntary corporate and government commitments have failed to shift the trajectory significantly, calling for mandatory regulations, increased direct funding for Indigenous Peoples and Local Communities (IPLCs), and stronger governance to prevent further degradation.

The 2022 Forest Declaration Assessment finds that no global indicator is currently on track to meet the 2030 goals of halting forest loss and restoring 350 million hectares of landscape. While Tropical Asia is on track to halt deforestation, other regions like Tropical Latin America and Africa are not. The report highlights a massive funding gap, with current mitigation finance at less than 1% of the estimated USD 460 billion annual need. It also notes that commodity-driven deforestation declined by 6% in 2021 but remains far from the trajectory needed for the 2025 private sector target. Governance remains a critical weakness, with persistent tenure insecurity for Indigenous Peoples and local communities and widespread corruption in the timber trade.

The 2022 Theme 2 Assessment of the Forest Declaration finds that the world is not on track to meet 2030 forest goals or 2025 zero-deforestation targets for agricultural supply chains. While commodity-driven tree cover loss declined by 6% in 2021 compared to 2018-20, rates remain higher than in any year before 2016. The report highlights a significant gap between government 'green growth' agendas and actual investment, noting that trillions of dollars are mobilized for infrastructure like the Belt and Road Initiative while global public investments in forest goals are only USD 2.3 billion per year. In the private sector, only a quarter of major agricultural companies have ambitious policies to eliminate deforestation, and less than 20% of companies disclosing to CDP report near full compliance. The extractives sector shows even lower transparency and a lack of explicit forest-focused policies. Grassroots resistance, led by Indigenous Peoples and local communities, has achieved some successes, such as a temporary moratorium on new concessions in Ecuador, but defenders face high rates of violence, with over 200 killed in 2021.

The report finds that global forest finance is not on track to meet 2030 goals, with current mitigation finance averaging USD 2.3 billion per year—less than 1 percent of the estimated USD 460 billion annual requirement. It highlights a stark imbalance where 'grey finance' (harmful investments) significantly outweighs 'green finance,' and notes that Indigenous Peoples and local communities remain severely underfunded. While 2021 pledges could quadruple annual finance to USD 9.5 billion, this remains insufficient. The report also analyzes the limited impact of voluntary and compliance carbon markets and the slow progress of REDD+ frameworks.

In 2019/2020, Nigeria received an average of USD 1.9 billion annually in climate finance, representing only 11% of the USD 17.7 billion needed to meet its conditional NDC target. Public finance dominated the landscape, accounting for 77% of flows, primarily through concessional debt. Mitigation finance (USD 1.1 billion) outweighed adaptation finance (USD 663 million), despite the country's high vulnerability to climate risks. Energy systems received the largest share of investment (41%), with a strong focus on solar technologies, while sectors like waste and industrial processes remained severely underfunded. The report highlights a significant contradiction between climate finance goals and continued heavy investment in fossil fuels, noting that a single LNG project received USD 2.77 billion—more than the total tracked climate finance for the period.

The document outlines Africa's objectives for COP27, focusing on the African Group of Negotiators' (AGN) demands for increased climate finance and the recognition of the continent's special circumstances. It highlights a tension between the African Union's (AU) support for natural gas as a transition fuel and the goals of renewable energy activists. The brief also details the roles of specific 'climate champion' countries and the impact of global geopolitical tensions, such as the US-China standoff and the Russia-Ukraine war, on climate negotiations.

The document argues that nature-based solutions (NbS) often fail to achieve their potential because planning ignores the complexities of scale. It highlights that NbS have longer time-lags than grey infrastructure, spatial dependencies that transcend individual sites, and jurisdictional barriers that complicate governance. The authors recommend a shift toward quantitative targets, 'no regrets' strategies, and cross-jurisdictional coordination to avoid large-scale maladaptation.

The GCF is implementing a four-pillar operational framework to enhance coordination with other climate funds. Key achievements include the establishment of a joint steering committee for the Long-Term Vision (LTV) with the GEF, the fast-track reaccreditation of nine entities with the AF, and the development of a joint GCF-GEF pavilion for COP 26 and COP 27. The report details specific funding proposals and readiness grants that demonstrate national programming coherence, as well as ongoing technical dialogues to harmonize results indicators and impact measurement methodologies across funds.

The Green Climate Fund (GCF) Secretariat and Accreditation Panel (AP) assessed World Wildlife Fund, Inc. (WWF-US) for re-accreditation. The AP recommends re-accreditation for a second term with a medium project size limit and medium environmental and social risk category (B/I-2). While WWF-US met most fiduciary and gender standards, it partially failed the GCF Revised Environmental and Social Policy due to its institutional grievance redress mechanism (GRM) lacking independence, legitimacy, transparency, and predictability. Re-accreditation is conditional upon the AE adopting and publishing a compliant GRM policy. The assessment highlights the success of the 'Bhutan for Life' project and WWF-US's broader climate strategy, which includes a target for renewable energy to provide 50 per cent of global energy supply by 2025.

The briefing examines the impact of extreme heat and the urban heat island effect in Delhi, highlighting that the city is ranked as the second most heat-stressed city globally. It proposes that while Delhi has significant green space, including 18,000 parks and the Central Ridge, much of it is underutilized or dominated by invasive species like Prosopis juliflora. The author advocates for a transition from emergency heatwave planning to long-term nature-based solutions, specifically through the planting of locally adapted native species tailored to specific micro-habitats. The document provides five recommended practices for maximizing ecosystem health, emphasizing the need for a scientific species selection framework and the prioritization of greening in low-income, high-density neighborhoods to address heat equity.

The voluntary carbon market, valued at $2 billion in 2021, faces significant challenges regarding trust and scarcity relative to global climate needs. RMI proposes three solutions to scale high-quality credits: reducing project development time and costs through upfront capital and technology, differentiating the credit supply via ratings and quality standards, and establishing a transparent data platform to ensure integrity.

The Mijares River basin faces significant environmental threats, including a 56% reduction in summer storms since 1950 and high risks of desertification and forest fires. To address these, the document proposes five targeted adaptation measures: recovering extensive grazing in the headwaters, creating mosaic landscapes, restoring traditional orchards in the upper and middle reaches, maintaining rain-fed crops in the middle reach, and diversifying citrus plantations with sustainable woody crops in the lower reach. Implementation is hindered by fragmented private land ownership (minifundios), rugged terrain, and the loss of traditional knowledge. The brief advocates for a participatory, integrated territorial approach involving payments for ecosystem services and the integration of women and youth into rural employment.

The report provides a comprehensive overview of Peru's sustainable finance landscape, detailing the growth of Green, Social, and Sustainability (VSS+) bonds. It highlights Peru's role as a regional pioneer, starting with the first green bond in Latin America in 2014, and examines the current market composition where sustainable bonds dominate. The document identifies significant investment gaps in infrastructure, water management, and low-carbon transport, while outlining a roadmap for growth involving key public and private stakeholders. It also addresses systemic barriers such as low market liquidity, currency risk, and the need for a national green taxonomy.

The report analyzes Peru's sustainable finance landscape, noting that while it was a regional pioneer with the first green bond in 2014, its GSS+ market has expanded more slowly than its peers. As of April 2022, the market reached approximately USD 6.6bn across 16 deals, dominated by sovereign sustainability bonds. The document identifies significant investment gaps in infrastructure (USD 110bn) and sanitation (USD 22bn), while highlighting opportunities in renewable energy, low-carbon agriculture, and nature-based solutions. It outlines structural barriers such as low market liquidity, currency hedging challenges, and political instability, and recommends the development of a national green finance taxonomy by 2025 to provide clarity and attract capital.

The Climate Smart Shrimp Fund (CSSF), developed by Conservation International, is a proposed loan bundle and technical assistance facility designed to transition extensive shrimp farms to a 'Climate Smart Shrimp' (CSS) model. This model increases production efficiency in a subset of ponds while restoring mangroves in others to provide carbon sequestration and coastal protection. The instrument is currently in a pilot phase in Indonesia, Ecuador, and the Philippines, with a goal to scale to a USD 100 million fund targeting six countries. Financial modeling suggests the approach can increase farm-level profits fourfold compared to business-as-usual scenarios and offers a viable debt service coverage ratio for investors.

The Fund for Nature (TFFN) is a financial instrument designed to provide market-rate project-level debt to nature-based carbon projects, primarily in Sub-Saharan Africa. By offering an alternative to the common practice of pre-selling carbon credits at steep discounts to corporate buyers, TFFN aims to increase the revenue captured by local project implementers and communities. A central innovation of the fund is the development of a standardized, open-sourced Simple Agreement for Future Offtake (SAFO), which serves as a bankable document to secure future carbon credit supply and act as collateral for debt. The fund targets the agriculture, forestry, and blue carbon sectors, specifically focusing on afforestation, reforestation, and revegetation (ARR) and reducing emissions from deforestation and forest degradation (REDD+). A pilot fund of USD 50-70 million is envisioned, with the potential to scale as voluntary carbon markets are projected to grow significantly by 2030.

Africa requires USD 277 billion annually to meet its 2030 climate goals, yet only USD 29.5 billion was tracked in 2019/2020. International public finance dominates the landscape, while private sector contributions remain low at 14%. The report highlights significant investment gaps, particularly in Southern Africa, and a critical need to shift funding from fossil fuels toward renewable energy and adaptation, especially in the agriculture, forestry, and other land use (AFOLU) sector.

The document argues that Africa faces an annual financing gap of over $100 billion to preserve its natural capital, which is critical for global climate and biodiversity goals. It proposes a 'triple bottom line' approach—combining financial returns, environmental impact, and community benefits—applied through landscape financing, restorative agriculture, and sustainable supply chains. The paper identifies green bonds, carbon credits, and impact investing as key financial mechanisms and calls for stronger regulatory frameworks, such as the adoption of Taskforce on Nature-related Financial Disclosures (TNFD) guidelines, to attract private capital and prevent 'nature-washing'.

The paper examines the failure of the 'billions to trillions' agenda to mobilize private capital for biodiversity, noting that while some success exists in renewable energy, biodiversity funding remains critically low. It introduces the Multi-Level Perspective (MLP) as a tool to analyze the financial 'regime' and 'landscape' that obstruct biodiversity investment. The author suggests six policy intervention points—stimulating and accelerating niches, destabilizing the regime, addressing repercussions, coordinating multi-regime interactions, and tilting the landscape—to drive a systemic transition toward effective biodiversity financing.

The ALBAdapt project seeks to transform Albania's climate services value chain to address high disaster risks from floods, droughts, and heat waves. The project focuses on three components: establishing a National Framework for Climate Services (NFCS) to improve hydrometeorological data and coordination; implementing a multi-hazard impact-based early warning system (MHIEWS) to enable early action; and fostering climate-informed investments, specifically through Nature-based Solutions (NbS) and Ecosystem-based Adaptation (EbA) in the coastal zone. With a total indicative cost of EUR 49.95 million, the project targets the entire population of 2.8 million for early warning services and 400,000 people in the coastal zone for specific adaptation innovations.