Wealthy Nations Urged to Curb Climate Finance Debt For Developing Countries

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Children in Bangladesh riding a boat through a flooded river to attend school. Bangladesh is one of the most climate-sensitive regions in the world. Credit: UNICEF/Suman Paul Himu

UNITED NATIONS, Oct 8 2025 (IPS) – In recent years, international climate financing has declined sharply, leaving billions of people in developing nations increasingly vulnerable to natural disasters and unable to adapt effectively. With major cuts in foreign aid, these communities are expected to face the brunt of the climate crisis, while wealthier nations continue to reap economic benefits.

A new report from Oxfam and CARE Climate Justice Center, Climate Finance Shadow Report 2025: Analyzing Progress on Climate Finance Under the Paris Agreement, showcases the significant gaps in climate financing for developing countries in the Global South, and the far-reaching implications for climate resilience and global preparedness.

This comes ahead of the 30th United Nations (UN) Climate Change Conference (COP30), in which world leaders, diplomats, and civil society groups will converge in Belém, Brazil, from November 10–21, to discuss strategies to strengthen global cooperation, advance inclusive and sustainable development, and accelerate efforts to address the climate crisis. The United Nations Environment Programme (UNEP) states that there will be a major focus on allocating public funds for mitigation and adaptation efforts in developing countries, aiming to mobilize at least USD 300 billion annually by 2035 for developing countries and a yearly USD 1.3 trillion over the same period.

In the report, CARE and Oxfam found that developing countries are paying disproportionately high disbursements to wealthy nations in exchange for comparatively modest climate finance loans—spending about seven dollars for every five dollars they receive in return. This, compounded with “the most vicious foreign aid cuts since the 1960s”, shows a nearly 9 percent drop in climate funding in 2024, which is projected to drop by a further 9-17 percent in 2025.

“Rich countries are failing on climate finance and they have nothing like a plan to live up to their commitments to increase support. In fact, many wealthy countries are gutting aid, leaving the poorest to pay the price, sometimes with their lives” said John Norbo, Senior Climate Advisor at CARE Denmark. “COP30 must deliver justice, not another round of empty promises.”

As of 2022, developed nations reported pledging approximately USD 116 billion in climate funding for developing countries. However, the actual amount delivered is less than one-third of the pledged total — estimated at only USD 28–35 billion. Nearly 70 percent of this funding came in the form of loans, often issued at standard rates of interest without concessions. As a result, wealthy nations are driving developing countries deeper into debt, despite these nations contributing the least to the climate crisis and lacking the resources to manage its impacts.

It is estimated that developing countries are indebted by approximately USD 3.3 trillion. In 2022, developing countries received roughly USD 62 billion in climate loans, which is projected to produce over USD 88 billion for wealthy countries, yielding a 42 percent profit for creditors. The countries issuing the highest concessional loans in climate financing were France, Japan, Italy, Spain, and Germany.

“Rich countries are treating the climate crisis as a business opportunity, not a moral obligation,” said Oxfam’s Climate Policy Lead, Nafkote Dabi. “They are lending money to the very people they have historically harmed, trapping vulnerable nations in a cycle of debt. This is a form of crisis profiteering.”

Despite wealthy nations issuing high loans to developing countries, Least Developed Countries (LDCs) received only 19.5 percent of the total public climate funding over 2021-2022, while Small Island Developing States (SIDs) received roughly 2.9 percent. Only 33 percent of this funding went toward climate adaptation, a “critically underfunded” measure according to Oxfam, as the majority of creditors favor investing in mitigation efforts that deliver faster financial returns. Additionally, only 3 percent of this funding went to gender equality efforts, despite women and girls being disproportionately impacted by the climate crisis.

The report also underscores the dire impacts of the misallocation of climate financing and funding cuts, as vulnerable communities in particularly climate-sensitive environments find themselves with far fewer resources to adapt to natural disasters.

In 2024, communities in the Horn of Africa were ravaged by brutal cycles of droughts and flooding, which displaced millions of civilians and pushed tens of millions into food insecurity. In Rio Grande do Sul, Brazil, massive floods caused over 180 civilian deaths, displaced 600,000 people, and the resulting damage led to billions of dollars in losses. According to figures from UNICEF, around 35 million children in Bangladesh experienced school disruptions in 2024 due to heatwaves, cyclones, and floods, posing serious risks to their long-term development. The United Nations Environment Programme (UNEP) warns that global temperatures are on course to rise to a “catastrophic” 3°C by the end of the century, with extreme weather events expected to intensify further.

Ahead of the COP30 conference, Oxfam has urged wealthy nations to honor their climate finance commitments, including the delivery of the full USD 600 billion pledged for the 2020–2025 period, aligning with the UN’s target of mobilizing USD 300 billion annually. The organization also called for a substantial increase in global funding for climate adaptation and loss management, alongside the implementation of higher taxes on the wealthiest individuals and fossil fuel companies—which could generate an estimated USD 400 billion per year. Additionally, Oxfam emphasized the need for developed countries to stop deepening the debt of climate-vulnerable nations by expanding the share of grants and highly concessional financing instead of standard loans.

IPS UN Bureau Report

 

Loss and Damage at COP30: Indigenous Leaders Challenge Top-Down Finance Models

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Indigenous Rights

Indigenous activists continue to fight for a seat at the table in solving climate change, asking for self-determination and financial agency.

Activists demand loss and damage reparations outside the hall where the COP29 negotiators were concluding their negotiations. Credit: UN Climate Change/Kiara Worth

Activists demand loss and damage reparations outside the hall where the COP29 negotiators were concluding their negotiations. Credit: UN Climate Change/Kiara Worth

UNITED NATIONS, Sep 17 2025 (IPS) – As climate-induced disasters continue to devastate the Global South, nations are steadily mounting pressure at the United Nations for wealthier countries to deliver on long-promised climate reparations through the Loss and Damage Fund. For Indigenous peoples, whose territories are often the most ecologically intact yet most damaged by climate change, these negotiations define survival, sovereignty and recognition as rights-holders in global climate governance.

After the fund’s operationalization at the 29th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP29) in Baku last fall, developing countries say that the pledges so far—approximately USD 741 million—fall drastically short of the trillions needed to recover from climate devastation.

This low number is acutely felt in Indigenous communities, whose local economies rely on thriving ecosystems.

“A lot of rich biodiversity, carbon sinks and the most preserved parts of the world are within indigenous territories,” said Paul Belisario, Global Coordinator for the Secretariat of the International Indigenous Peoples Movement for Self-Determination and Liberation (IPMSDL), in an interview with IPS. “Without recognizing Indigenous people’s right to take care of it, to govern it and to live in it so that their traditional knowledge will flourish, we cannot fully address the climate crisis.”

UN Secretary-General António Guterres echoed this sentiment in Baku, saying, “The creation of the Loss and Damage Fund is a victory for developing countries, for multilateralism and for justice.  But its initial capitalization of USD 700 million doesn’t come close to righting the wrong inflicted on the vulnerable.”

These “wrongs,” Indigenous leaders argue, must include the exclusion of traditional and tribal knowledge in decision-making. In light of pushback to make climate action a legal responsibility rather than a political agreement, many are hopeful that COP30 will yield a more successful negotiation for adequate compensation.

The call for action is led by coalition blocs including the Alliance of Small Island States (AOSIS) and G77, an alliance of developing countries with China as its primary political and financial supporter. Both alliances represent the countries most vulnerable to climate-related natural disasters. G77 was particularly vocal during COP29, where their rejection of the deal was backed by a number of climate and civil society organizations who criticized the negotiating text for giving developed countries too much leeway to shirk their climate finance obligations.

For Indigenous groups, this criticism stems from concerns that funding will not successfully reach their communities due to bureaucracy or geographical and political isolation.

Secretary-General António Guterres meets with André Aranha Corrêa do Lago, President-designate of COP 30, the 2025 UN Climate Change Conference, which will be held in Belém, Brazil. Credit: UN Photo

Secretary-General António Guterres meets with André Aranha Corrêa do Lago, President-designate of COP 30, the 2025 UN Climate Change Conference, which will be held in Belém, Brazil. Credit: UN Photo

Janene Yazzie, director of policy and advocacy at the NDN Collective, spoke about the importance of Indigenous involvement in funding distributions, saying, “What we’re advocating for is to ensure that these mechanisms… are accessible to Indigenous Peoples, uphold the rights of Indigenous Peoples, and can be utilized towards solutions and responses that are designed and prioritized by Indigenous Peoples.”

Last year, countries eventually settled on mobilizing USD 300 billion annually by 2035 to developing countries for climate finance—far below the USD 1 trillion experts say is the minimum for effective mitigation and adaptation. The financial commitment is voluntary, meaning that countries can withdraw without consequence and no protections exist to ensure the money is distributed with regard for Indigenous governance systems.

The Forest Stewardship Council (FSC) Indigenous Foundation noted that groups without formal land titles could be excluded entirely, despite their role in stewarding biodiverse landscapes.

However, a recent International Court of Justice (ICJ) report has created new legal pathways. The court placed stringent obligations on states to prevent significant climate harm and tackle climate change, stating that failure to do so triggers legal responsibility. Scientific evidence can link emissions to specific countries, allowing those affected by climate change to seek legal action, which could include getting money back, restoring land, improving infrastructure, or receiving compensation for financial losses.

Indigenous activists at COP29. Credit: UN Climate Change/ Kiara Worth

Indigenous activists at COP29. Credit: UN Climate Change/Kiara Worth

This legal opinion opens new pathways for seeking restitution—not only in money but also in land recovery, infrastructure for adaptation, and guarantees of political participation.

This legal shift comes at a crucial time. In April 2025, thousands of Indigenous Brazilians marched in the capital ahead of COP30 in Belém, demanding land rights and decision-making influence. Meanwhile, the National Organization of the Indigenous Peoples of the Colombian Amazon (OPIAC) also issued a statement about the summit for Deforestation of the Amazon. They outline an action plan to end deforestation, strengthen land rights and phase out oil and gas exploration.

After indigenous groups were denied a co-presidency for COP30, Conference President André Corrêa do Lago pledged to establish a “Circle of Indigenous Leadership” within the conference. Many leaders found the arrangement insufficient—the FSC Indigenous Foundation called instead for “co-governance models where Indigenous Peoples are not just consulted but are leading and shaping climate action.”

Indigenous people make their message clear during COP29. Credit: Photo- UN Climate Change/Lara Murillo

Indigenous people make their message clear during COP29. Credit: UN Climate Change/Lara Murillo

Other groups were more explicitly critical. The Indigenous Climate Action co-authored a statement at the end of COP29 saying, “There is nothing to celebrate here today… While we urgently need direct and equitable access to climate finance for adaptation, mitigation and loss and damage across all seven socio-cultural regions… we reject the financial colonization that comes from loans and any other financial mechanisms that perpetuate indebtedness of nations that have contributed the least to climate change yet bear the brunt of its tragedies.”

Belisario frames the funding question as a matter of justice rather than charity.

“This funding is not just corporate social responsibility or compensation,” he told IPS. “This is historical justice.”

However, without Indigenous influence in the distribution of money from the Loss and Damage Fund, it remains unclear how effective this aid will be in combating climate change based on Indigenous knowledge and science. Many activists advocate for more localized approaches to climate action.

Belisario acknowledges the limitations of international negotiations.

“It’s been a running joke that we will negotiate until COP100, and we might not have that long. What we would really like to get out of COP30 is to meet many communities to discuss the common problems and make them realize that this COP is just a part of how we would like to solve our climate crisis,” he said. “We really believe that more radical ways to enact accountability and responsibility will start with movements in people’s own countries, in their own localities.”

As the FSC Indigenous Foundation concluded, “Indigenous Peoples must lead the design, management, and oversight of financial mechanisms that affect their lands, lives, and futures. Climate justice will only be possible when Indigenous Peoples are recognized as rights-holders and partners in decision-making.”

IPS UN Bureau Report

 

Bending the Curve: Overhaul Global Food Systems to Avert Worsening Land Crisis

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Food Systems

Scientists say replacing just 10 percent of global vegetable intake with seaweed-derived products could free up large portions of land. Credit: Joyce Chimbi/IPS

Scientists say replacing just 10 percent of global vegetable intake with seaweed-derived products could free up large portions of land. Credit: Joyce Chimbi/IPS

Current rates of land degradation pose a major environmental and socioeconomic threat, driving climate change, biodiversity loss, and social crises. Food production to feed more than 8 billion people is the dominant land use on Earth. Yet, this industrial-scale enterprise comes with a heavy environmental toll.

Preventing and reversing land degradation are key objectives of the United Nations Convention to Combat Desertification (UNCCD) and are also fundamental for the United Nations Framework Convention on Climate Change (UNFCCC) and the Convention on Biological Diversity (CBD).

These three conventions emerged from the 1992 Rio Earth Summit to address the interconnected crises of biodiversity loss, climate change and land degradation. A paper published today in Nature by 21 leading scientists argues that the targets of “these conventions can only be met by ‘bending the curve’ of land degradation and that transforming food systems is fundamental for doing so.”

Lead author Fernando T. Maestre of the King Abdullah University of Science and Technology (KAUST), Saudi Arabia, says the paper presents “a bold, integrated set of actions to tackle land degradation, biodiversity loss, and climate change together, as well as a clear pathway for implementing them by 2050.”

“By transforming food systems, restoring degraded land, harnessing the potential of sustainable seafood, and fostering cooperation across nations and sectors, we can ‘bend the curve’ and reverse land degradation while advancing towards goals of the UN Convention to Combat Desertification and other global agreements.”

Co-author Barron J. Orr, UNCCD’s Chief Scientist, says, “Once soils lose fertility, water tables deplete, and biodiversity is lost, restoring the land becomes exponentially more expensive. Ongoing rates of land degradation contribute to a cascade of mounting global challenges, including food and water insecurity, forced relocation and population migration, social unrest, and economic inequality.”

“Land degradation isn’t just a rural issue; it affects the food on all our plates, the air we breathe, and the stability of the world we live in. This isn’t about saving the environment; it’s about securing our shared future.”

The authors suggest an ambitious but achievable target of 50 percent land restoration for 2050—currently, 30 percent by 2030—with enormous co-benefits for climate, biodiversity and global health. Titled ‘Bending the curve of land degradation to achieve global environmental goals,’ the paper argues that it is imperative to ‘bend the curve’ of land degradation by halting land conversion while restoring half of degraded lands by 2050.

“Food systems have not yet been fully incorporated into intergovernmental agreements, nor do they receive sufficient focus in current strategies to address land degradation. Rapid, integrated reforms focused on global food systems, however, can move land health from crisis to recovery and secure a healthier, more stable planet for all,” reads parts of the paper.

Against this backdrop, the authors break new ground by quantifying the impact of reducing food waste by 75 percent by 2050 and maximizing sustainable ocean-based food production—measures that alone could spare an area larger than Africa. They say restoring 50 percent of degraded land through sustainable land management practices would correspond to the restoration of 3 Mkm² of cropland and 10 Mkm² of non-cropland, a total of 13 Mkm².

Stressing that land restoration must involve the people who live on and manage the land—especially Indigenous Peoples, smallholder farmers, women, and other vulnerable people and communities. Co-author Dolors Armenteras, Professor of Landscape Ecology at Universidad Nacional de Colombia, Bogotá, says land degradation is “a key factor in forced migration and conflict over resources.”

“Regions that rely heavily on agriculture for livelihoods, especially smallholder farmers, who feed much of the world, are particularly vulnerable. These pressures could destabilize entire regions and amplify global risks.”

To support these vulnerable segments of the population, the paper calls for interventions such as shifting agricultural subsidies from large-scale industrial farms toward sustainable smallholders, incentivizing good land stewardship among the world’s 608 million farms, and fostering their access to technology, secure land rights, and fair markets.

“Land is more than soil and space. It harbors biodiversity, cycles water, stores carbon, and regulates climate. It gives us food, sustains life, and holds deep roots of ancestry and knowledge. Today, over one-third of Earth’s land is used to grow food – feeding a global population of more than 8 billion people,” says Co-author Elisabeth Huber-Sannwald, Professor, the Instituto Potosino de Investigación Científica y Tecnológica, San Luis Potosí, Mexico.

“Yet today,” she continues, “Modern farming practices, deforestation, and overuse are degrading soil, polluting water, and destroying vital ecosystems. Food production alone drives nearly 20 percent of global emissions of greenhouse gases. We need to act. To secure a thriving future – and protect land – we must reimagine how we farm, how we live, and how we relate to nature – and to each other.”

With an estimated 56.5 Mkm² of agricultural land, cropland, and rangelands being used to produce food, and roughly 33 percent of all food produced being wasted, of which 14 percent is lost post-harvest at farms and 19 percent at the retail, food service and household stages, reducing food waste by 75 percent, therefore, could spare roughly 13.4 Mkm² of land.

The authors’ proposed remedies include policies to prevent overproduction and spoilage, banning food industry rules that reject “ugly” produce, encouraging food donations and discounted sales of near-expiry products, education campaigns to reduce household waste and supporting small farmers in developing countries to improve storage and transport.

Other proposed solutions include integrating land and marine food systems, as red meat produced in unsustainable ways consumes large amounts of land, water, and feed and emits significant greenhouse gases. Seafood and seaweed are sustainable, nutritious alternatives. Seaweed, for example, needs no freshwater and absorbs atmospheric carbon.

The authors recommend measures such as replacing 70 percent of unsustainably produced red meat with seafood, such as wild or farmed fish and mollusks. Replacing just 10 percent of global vegetable intake with seaweed-derived products could free up over 0.4 Mkm² of cropland.

They nonetheless note that these changes are especially relevant for wealthier countries with high meat consumption. In some poorer regions, animal products remain crucial for nutrition. The combination of food waste reduction, land restoration, and dietary shifts, therefore, would spare or restore roughly 43.8 Mkm² in 30 years (2020-2050).

The proposed measures combined would also contribute to emission reduction efforts by mitigating roughly 13.24 Gt of CO₂-equivalent per year through 2050 and help the world community achieve its commitments in several international agreements, including the three Rio Conventions and UN SDGs.

Overall, the authors call for the UN’s three Rio conventions—CBD, UNCCD and UNFCCC—to unite around shared land and food system goals and encourage the exchange of state-of-the-art knowledge, track progress and streamline science into more effective policies, all to accelerate action on the ground.

A step in the right direction, UNCCD’s 197 Parties, at their most recent Conference of Parties (COP16) in Riyadh, Saudi Arabia, have already adopted a decision on avoiding, reducing and reversing land and soil degradation of agricultural lands.

The Findings By Numbers

  • 56%: Projected increase in food production needed by 2050 if we stay on our current path
  • 34%: Portion of Earth’s ice-free land already used for food production, headed to 42% by 2050
  • 21%: Share of global greenhouse gas emissions produced by food systems
  • 80%: Proportion of deforestation driven by food production
  • 70%: Amount of freshwater consumption that goes to agriculture
  • 33%: Fraction of global food that currently goes to waste
  • USD 1 trillion: Estimated annual value of food lost or wasted globally
  • 75%: Ambitious target for global food waste reduction by 2050
  • 50%: Proposed portion of degraded land to be restored by 2050 using sustainable land management
  • USD 278 billion: Annual funding gap to achieve UNCCD land restoration goals
  • 608 million: Number of farms on the planet
  • 90%: Percentage of all farms under 2 hectares
  • 35%: Share of the world’s food produced by small farms
  • 6.5 billion tons: Potential biomass yield using 650 million hectares of ocean for seaweed farming
  • 17.5 million km²: Estimated cropland area saved if humanity adopts the proposed Rio+ diet (less unsustainably produced red meat and more sustainably sourced seafood and seaweed-derived food products)
  • 166 million: Number of people who could avoid micronutrient deficiencies with more aquatic foods in their diet

IPS UN Bureau Report

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How Mongolia Can Expedite It’s Just Transition Plans to Include Its Nomads

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Youth

Gereltuya Bayanmukh speaks about her motivations to become involved in climate activism. Credit: Leo Galduh/IPS

Gereltuya Bayanmukh speaks about her motivations to become involved in climate activism. Credit: Leo Galduh/IPS

ULAANBAATAR, Jul 9 2025 (IPS) – Youth activist Gereltuya Bayanmukh still reflects on the events in her formative years that inspired her to become a climate activist. When she was a child, she would visit her grandparents in a village 20 km to the south of the border between Russia and Mongolia.

She was happy to see each of the nomadic people in their traditional gers power up their settlements using solar power.

“I remember seeing my neighbors own a solar panel and a battery to accumulate power. They were turning on lights and watching TV using solar power. Nowadays, they even have fridges,” she says.

She thought the herders made a conscious choice about their lifestyles and understood the need of the hour in the face of the looming climate crisis. That is to say, switch to renewable energy and power a safer future.

“This was the reason I became a climate activist,” she says.

No matter how unwitting her notion about her community achieving self-sufficiency with renewable energy was, the findings about what entailed this system revealed something else.

“I later learned that the solar panels were partially subsidized by the government as a part of the nationwide government to equip 100,000 nomadic households with solar energy,” she says.

What she perceived turned out to be a nationwide renewable energy scheme by the Mongolian government for the nomadic herders.

The scheme, called the National 100,000 Solar Ger [Yurt] Electricity Program, introduced in 2000, provided herders with portable photovoltaic solar home systems that complement their traditional nomadic lifestyle.

At least 30 percent of Mongolia’s population comprises nomadic herders. Before 2000, when the scheme came into effect, herders had limited or no access to modern electricity. By 2005, the government managed to equip over 30,000 herder families through funds from several donor nations.

However, the full-scale electrification effort for herders was beginning to stagnate. The 2006 midterm custom audit performance report by the Standing Committee on Environment, Food and Agriculture of the Parliament carried sobering revelations.

The scheme in its initial phase was poorly managed: there was no control over the distribution process, with some units delivered to local areas landing in the hands of non-residents violating the contract, failure to deliver the targeted number of generators, misappropriation of the program funds, and inability to repay the loans within the contractual period.

However, in the third phase–2006-2012–the program was able to expand its implementation with the support of several international donors, including the World Bank.

“At first, I thought how great that we started out with the renewable energy transition, giving access to renewable energy at a lower price. And it was even in 1999. That was when I was just four years old. I believe we were on our way to building a future like this. Like we visualized here. The future of green nomadism. However, my optimism faded when I read the midterm audit report and discovered that the program had been (just as) poorly managed as the first part. It was only with the assistance of the international partners that the program finished well,” says Gereltuya.

Gereltuya is the co-founder and board director of her NGO, Green Dot Climate, which focuses on empowering youth as climate activists and raising awareness and practical skills for climate action.

One of the mottoes of her NGO is to change the youth’s and Mongolian people’s attitudes and practices around climate change issues as well as solutions.

In the past year, the NGO has been successful in reaching over half a million Mongolians, including nomads, helping them become more environmentally conscious and empowering the youth to be climate activists—makers and doers themselves.

“In the past year, we have reached over half a million Mongolians. Our Green Dot youth community has logged more than 100,000 individual climate actions, saving over 700,000 kg of CO₂, 25 liters of water, and 80,000 kilowatt-hours of energy. Next, we will aim for a million collective actions, a stronger community and a minimum of 50 collaborative climate projects in Mongolia,” Gereltuya said during her delegate speech at the One Young World Summit, a global event that brings in young leaders from around the world to discuss global issues, in 2023.

The state of Mongolia’s nomads in the current energy system

Mongolia as a country heavily relies on coal for energy production, which contributes to 90 percent of its energy production. Coming to just transition, the government aims for a 30 percent renewable energy share by 2030 of its installed capacity, as enshrined in the State Policy on Energy 2015-2030. Mongolia is also committed to reducing its greenhouse gas emissions by 22.7 percent by 2030 while the energy sector accounts for 44.78 percent of the total emissions as of 2020 according to Mongolia’s Second Biennial Update Report.

Gereltuya’s NGO, Green Dot Climate, has been mapping Mongolia’s energy systems for the past few years now. As of 2024, Mongolia’s electricity sector relies on CHP [combined heat and power] plants and imports from Russia and China to meet its electricity demands.

Only 7 percent of its total installed energy comes from renewable sources, with the Central Energy System accounting for over 80 percent of the total electricity demand. “We found that about 200,000 households remain unaccounted for in the centralized energy grid calculations. These are likely the same nomadic families or their later generations who likely adopted their first solar systems at least two decades ago,” she explains.

Gereltuya says that her organisation meticulously compared the recent household data cited by the Energy Regulatory Commission of Mongolia to that of the total  number of households as per the Mongolian Statistical Information Service to find the numbers that went missing

Mongolia’s backslide into fossil-fuel economy

Although Mongolia has promised to increase its renewable energy share to 30 percent by 2030, it is still far behind in the race to achieve its target.

In the 2020 Nationally Determined Contribution [NDC] submission to the United Nations Framework Convention on Climate Change [UNFCCC], Mongolia set its mitigation target to “a 22.7% reduction in total national greenhouse gas (GHG) emissions by 2030,” which can increase to a 27.2 percent reduction if conditional mitigation measures such as the carbon capture and storage and waste-to-energy technology are implemented. Further, if “actions and measures to remove GHG emissions by forest are determined”, the total mitigation target would rise to 44.9 percent by 2030.

“Instead of focusing on decarbonizing its coal-based economy, Mongolia shifted to focus on carbon-sink and sequestration processes to reduce its emissions. This suggests that despite our many promises, policies and past efforts to mainstream renewables, we may still end up with business as usual. A case of bad governance, stagnation and vicious cycles,” she says.

Recommendations for Mongolia’s energy sector

Gereltuya’s NGO has been actively engaged in the survey ‘Earth Month 2025’ that is aimed at collecting specific recommendations from the youth voices in the country for the NDC 3.0 that the government is expected to submit in COP30. She shares a few recommendations that she believes can help improve the country’s energy systems.

On the demand side, households not connected to the grid should update and improve their solar home systems, especially now that the solutions are much cheaper and more efficient.

According to the 2024 World Bank ‘Mongolia Country Climate and Development Report,’ the average residential tariff for electricity in Mongolia was estimated to be 40 percent below cost recovery, and subsidies were worth 3.5 percent of GDP in 2022. The lack of cost recovery created hurdles in efforts to enhance energy efficiency and investment in renewable energy. In the context, those connected to the grid should pay more for their energy use to reflect the real cost of energy production and support renewable energy feed-in tariffs. There should be responsible voting of citizens demanding better policies and implementations and not trading in policies for short-term gains.

On the supply side, there is a need to stop new fossil fuel projects immediately: there are at least six such projects, including one international project under Mongolia’s current Energy Revival Policy, underway.

Secondly, Mongolia’s electricity infrastructure needs significant improvement. As the UNDP recently highlighted, Mongolia’s infrastructure is aging, inefficient and heavily subsidized.

Thirdly, fully utilize installed energy capacity, which is at only 30 percent, largely owing to the infrastructure inefficiency.

Fourth is to increase the overall renewable energy capacity five times to meet demand, which means 15 times the energy made in full demand. And phase out coal-based power, replacing it with fully renewable energy.

IPS UN Bureau Report

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FFD4 Must Deliver for the World’s Most Vulnerable Nations

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Opinion

OHRLLS Office Banner. Credit: OHRLLS

UNITED NATIONS, Jul 1 2025 (IPS) – Five years from the 2030 deadline for the Sustainable Development Goals (SDGs), we face a development emergency. The promise to eradicate poverty, combat climate change, and build a sustainable future for all is slipping away. The SDG financing gap has ballooned to over $4 trillion annually—a crisis compounded by declining aid, rising trade barriers, and a fragile global economy.

At the heart of this crisis is a systemic failure: the world’s most vulnerable nations—Least Developed Countries (LDCs), Landlocked Developing Countries (LLDCs), and Small Island Developing States (SIDS)—are being left behind. The Fourth International Conference on Financing for Development (FFD4) in Seville is a historic chance to correct course.

We must seize it.

LDCs: Progress Stalled, Financing Denied

Three years into the Doha Programme of Action, LDCs are lagging precariously. Growth averages just 4.1%, far below the 7% target. FDI remains stagnant at a meager 2.5% of global flows, while ODA to LDCs fell by 3% in 2024. Worse, 29 LDCs now spend more on debt than health, and eight spend more on debt than education.

USG Rabab Fatima

These numbers demand action: scaled-up concessional finance, deep debt relief, and innovative tools like blended finance to unlock private investment. Without urgent measures, the 2030 Agenda will fail its most marginalized beneficiaries.

LLDCs: Trapped by Geography, Strangled by Finances

Six months after adopting the ambitious Awaza Programme of Action, LLDCs remain hamstrung by structural barriers. Despite hosting 7% of the world’s people, they account for just 1.2% of global trade, with export costs 74% higher than coastal nations. FDI has plummeted from $36 billion in 2011 to $23 billion in 2024, while ODA continues its downward spiral. Official Development Assistance (ODA) has also declined significantly from $38.1 billion in 2020 to $32 billion in 2023, with projections indicating continued downward trends.

The Awaza Programme outlines solutions—trade facilitation, infrastructure, and resilience—but these will remain empty promises without financing. FFD4 must align with its priorities, ensuring LLDCs get the investment they need to transform their economies.

I seize the opportunity to warmly invite all of you to continue these critical discussions at the Third United Nations Conference on Landlocked Developing Countries (LLDC3), to be held in Awaza, Turkmenistan, from 5 to 8 August 2025 under the theme “Driving Progress through Partnerships”.

SIDS: Debt, Disasters, and a Broken System

For SIDS, the crisis is existential. Over 40% are in or near debt distress; 70% exceed sustainable debt thresholds. Between 2016 and 2020, they paid 18 times more in debt servicing than they received in climate finance. This is unconscionable. Countries on the frontlines of the climate crisis should not be left on the margins of global finance. Nations drowning in rising sea level – which they did not contribute to – should not be drowning in debt.

We can continue patching over cracks in a broken system. Or we can build a more equitable foundation for sustainable development, and for that addressing debt sustainability is not only an economic necessity, but also a development imperative. No country should be forced to choose between servicing debt and protecting its future.

The Way Forward: Solidarity in Action

FFD4 must deliver:

    1. Debt relief and restructuring for LDCs, LLDCs, and SIDS to free up resources for development.
    2. Scaling up concessional finance and honoring ODA commitments.
    3. Mobilizing private capital through de-risking instruments and blended finance.
    4. Climate finance justice, ensuring SIDS and LDCs receive grants and concessional finance, not loans, to build resilience.

The moral case is clear, but so is the strategic one: A world where billions are left in poverty and instability, should be a world of shared risks and responsibilities. FFD4 must be the moment we choose a different path—one of equity, urgency, and action. The time for excuses is over. The agreement on the Compromiso de Sevilla is the start – the real test will be its implementation.

As we move forward on those important responsibilities s and necessary actions, my Office, UN-OHRLLS, is with you every step of the way.

Rabab Fatima, UN Under-Secretary-General and High Representative for the Least Developed Countries, Landlocked Developing Countries, and Small Island Developing States

IPS UN Bureau

 

Rising Temperatures, Rising Inequalities: How a New Insurance Protects India’s Poorest Women

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Climate Change Justice

For streetside sellers of artificial jewelry and for recyclers toiling under the increasingly torrid temperatures caused by climate change, innovative insurance means not all is lost when their wares are ruined or it is too hot to work. But is this a panacea or an opportunity for the authorities to ignore their responsibilities to the poorest workers of India?

Street vendor Deviben Dhaundhaliya waits by her iron-frame mobile ‘shop’ to be shifted to the marketplace for evening-time sales in Ahmedabad city in Gujarat state. Credit: Manipadma Jena/IPS

Street vendor Deviben Dhaundhaliya waits by her iron-frame mobile ‘shop’ to be shifted to the marketplace for evening-time sales in Ahmedabad city in Gujarat state. Credit: Manipadma Jena/IPS

BHUBANESWAR/AHMEDABAD, India, Jun 26 2025 (IPS) – As Deviben Dhaundhaliya, 45, a streetside seller of artificial jewelry, waits for her husband Devabhai to arrive and help her shift their iron-frame mobile ‘shop’ to the Bhadra Fort open-air marketplace in Ahmedabad city, she tells of how “as heat increased, my wares started melting under the direct exposure to the sun, or they got discolored.”

It was not the first time Deviben’s wares got heat-damaged. It has been happening most years ever since Gujarat’s Ahmedabad city in May 2010 experienced an unprecedented week-long deadly heat wave spiking to 46.8°C. Deviben says she feels an unrelenting anxiety deep within her as summer approaches.

“For over a decade our income plummets, sickness stalks us through the hottest months.”

However, succour has arrived in India in the form of a newer kind of income protection insurance against extreme heat. A parametric microinsurance has informal sector self-employed women like Deviben covered, building their resilience to growing extreme heat in India.

Parametric insurance depends on one or a few predetermined indexes or parameters, and if these are triggered, a pre-agreed payout happens quickly, which is its attraction. The payout is regardless of the quantum of loss. This creates a much lower risk and time-effort for daily-wage-dependent insurance participants. Whereas traditional indemnity-based insurances necessitate a loss-assessing survey, taking months for compensation payout.

Parametric insurance beneficiaries often pay a small premium, which is subsidized in these initial stages, but group insurers like SEWA visualize beneficiaries realizing benefits and eventually paying.

“Livelihoods and incomes decrease by 30-50 percent due to decreased work efficiency, reduced work hours, increased raw material expenses, spoilage of goods, loss of customers, and reduced workdays due to heat-related illnesses,” according to Sahil Hebbar, Senior Coordinator in charge of the parametric micro-insurance pilot at Self-Employed Women’s Association (SEWA).

WMO chart: The 1991-2024 warming average trend has almost doubled from that of 1961-1990.

WMO chart: The 1991-2024 warming average trend has almost doubled from that of 1961-1990.

The World Meteorological Organization’s (WMO) just-released State of the Climate in Asia 2024 finds that in 2024, Asia’s average temperature was about 1.04°C above the 1991–2020 average, ranking as the warmest or second warmest year on record, depending on the (final) dataset.

WMO warns that the region is warming nearly twice as fast as the global average, driving more extreme weather and posing serious threats to lives, ecosystems, and economies. The 1991-2024 warming average trend has almost doubled from that of 1961-1990.

Extreme heat is one of the deadliest climate risks, responsible for almost half a million deaths per year globally, said Swiss RE one of the world’s leading providers of reinsurance. It partnered with SEWA’s group insurance in 2024.

Beyond the impacts on worker health and well-being, extreme heat can also cause a myriad of economic impacts. Globally, 675 billion hours are lost every year because of excessive heat and humidity, amounting to roughly 1.7% of global GDP, according to Swiss RE.

Women in informal employment face climate heat and exclusion

Waste recycler Hansaben Ahir checks a discarded tarpaulin sheet in Ahmedabad city, Gujarat state. Credit: Manipadma Jena/IPS

Waste recycler Hansaben Ahir checks a discarded tarpaulin sheet in Ahmedabad city, Gujarat state. Credit: Manipadma Jena/IPS

Around 90 percent of women workers participate in the informal employment sector in India. If they are unable to go out to work due to extreme heat conditions, they lose their daily wages. Overall, developing nations are the most exposed to the frequency of climate shocks and chronic onset of mainly extreme heat and floods. Women workers are the most impacted.

A workers’ union, SEWA members total 2.9 million informal sector women workers. Salt-pan workers, recyclers from ship-breaking yards, construction site workers, street vendors, farmers, street waste recyclers, head loaders and home-based workers are included as beneficiaries. These women survive from one day to another on daily wages averaging 150-450 rupees (USD 1.74 –  USD 5.22).

Deviben sells bangles, neck pieces and eardrops of brightly colored fiber material inset in crudely worked metal and gaudy wristwatches with Tissot or CK emblazoned on their dials.

“Because we all streetside sellers sit directly exposed to the sun, dehydration is common. Sometimes my head reels like a carnival merry-go-round; I can barely stand. I go under a tree shade but for only a short while, fearing I’d lose customers,” Deviben said.

When it is really bad, she buys a packet of Oral Dehydration Solution but cannot always afford the 20 rupees (US 0.23 cents) cost.

Hansaben Ahir, 49, a waste collector and recycler, has been a SEWA member for 15 years. She said dehydration, a resultant urinary tract infection, and sudden heat cramps in her legs are so painful, she just has to sit herself down, even if on a road. Last summer she also developed hypertension, mainly stressing over a rising-cost home loan and plummeting income.

“Late-March till the end of June almost every year, my daily earnings fall to 250 rupees (USD 2.90), just half of my normal income, because customer footfall drops drastically,” Deviben, the street vendor, said.

Out-of-pocket medical expenses for the entire family take a chunk from their meager savings. “The insurance payout helps us meet medical expenses,” she said.

Where traditional insurance hesitates, parametric climate insurance can spread its reach

Home-based worker Dipikaben with her teenage friends in Odni Chawl slum, gluing stones and beads on a fabric length in Ahmedabad city in Gujarat. Credit: Manipadma Jena/IPS

Home-based worker Dipikaben with her teenage friends in Odni Chawl slum, gluing stones and beads on a fabric length in Ahmedabad city in Gujarat. Credit: Manipadma Jena/IPS

While SEWA’s 2023 parametric heat insurance pilot was a non-starter, nevertheless, “It was a pilot, and we learned a lot of lessons,” Sahil Hebbar told IPS earlier when the parametric insurance failed to trigger any payout although 2023 was the second warmest on record in the country since 1901 according to the India Meteorological Department.

The single parameter that was considered for the 6-week pilot was satellite-determined maximum daytime temperature. Only when a consecutive 3-day average temperature topped 45-46 degrees Celsius would the women have seen a payout.

Hebbar said there is a difference between satellite-recorded temperature and that on the ground where SEWA women worked. Wet-bulb effect, that dangerous effect of heat combined with humidity that inhibits sweating to cool off the body, should be another parameter. So should high nighttime temperature, which is more harmful for health than daytime heat. Hebbar is also a consulting physician with SEWA.

The challenge, in this case of extreme temperatures, was that the perception of heat and its tolerance can be relative, with significant degrees of variation depending on the location (even within the same Indian province). Somehow local climate variations need to be reflected in the final design of the solution, according to Swiss RE which designed SEWA’s 2024 parametric insurance.

That year, with modifications to design, mainly using locale-by-locale historic temperature data, the parametric insurance was scaled up to 50,000 members across 22 districts in three provinces—Gujarat, Rajasthan, and Maharashtra—up from the pilot’s 21,000 members across just 5 districts in Gujarat alone.

From getting zero payout in 2023 because of the unrealistically high trigger of 45-46 degrees Celsius, in 2024, the insurance was triggered in 17 out of the 22 districts, and 46,339 SEWA members received payouts ranging from 151-1651 rupees (USD 1.75-USD 19).

In 2023 the climate adaptation equipment that the insurance beneficiaries got for the USD 3 premium they paid were umbrellas and cooler water flasks for urban workers, while rural workers got tarpaulin and solar lanterns. In the summer of 2024, these were replaced by a cash assistance layer that triggered in all 22 districts, and members received cash assistance of 400 rupees (USD 4.64).

The two-layered combination of insurance payouts and a direct cash assistance programme helps reduce marginalized women workers’ burden of income losses from climate events.

Similarly, another Gujarat women-centric non-profit, Mahila Housing Trust (MHT), has also, in 2024 introduced parametric heat insurance as a financial safety net for urban poor communities vulnerable to extreme heat.

However, parametric insurance is now also bailing out extreme monsoon victims, and this time not non-profits but a provincial government itself, the first in India, has disaster-insured the entire State of Nagaland in India’s northeast.

Nagaland’s annual rainfall averages between 70 and 100 inches, concentrated over May to September. However, torrential rainfall squeezed into just a few days can cause havoc, triggering landslides and home and crop damage in the mountainous topography.

The pre-agreed payouts here are based on high, medium, or low flood risk zones. The parametric monsoon coverage by the Nagaland State Disaster Management Authority (NSDMA) is provided under the Disaster Risk Transfer Parametric Insurance Solution (DRTPS). It saw its first successful payout in May this year for damages during the monsoons of 2024.

However, the new insurance may not be the panacea it’s being visualized to be. A section of policy experts and climate activists questions the long-term sustainability of parametric insurance.

Such mechanisms nudge governments to abdicate responsibility, providing social safeguards

“In the face of escalating climate impacts, the notion that insurance can serve as a panacea is not only misguided but dangerous. As climate impacts grow more severe, large areas of our planet are becoming impossible to insure. This means that the safety net of insurance is disappearing, even in the most developed parts of the world. Moreover, the structure of parametric insurance, which disburses funds based on predetermined triggers rather than actual losses, starkly fails those in dire need, often leaving them with a fraction of what is required to rebuild their lives,” climate activist Harjeet Singh told IPS.

“Such mechanisms not only deepen existing inequalities but also perilously nudge governments towards abdicating their duty to provide essential social safeguards. These very protections are vital for communities to rebuild their livelihoods and homes after disasters,” Singh, a lead campaigner for the United Nations’s Loss and Damage movement, added.

“We must pivot towards social protection mechanisms, such as unconditional cash transfers post-disaster, subsidized food grains, guaranteed wage employment for the able-bodied, and financial support for reconstructing homes, livelihoods, and ecosystem restoration. These not only assist in immediate recovery but also strike at the heart of vulnerability, fostering a resilient recovery from the climate-induced devastation,” he said.

“This is not merely a matter of policy preference but a fundamental human right for communities on the front line of the climate crisis. Robust social protection is required for genuine resilience and a fairer, more equitable response to the climate emergency,” he asserted.

Note: This feature is published with the support of Open Society Foundations.

PS UN Bureau Report

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