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
By Oritro Karim
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.
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Oxfam and CARE Climate Justice Centre argue that wealthy nations are profiteering through climate finance loans. Credit: CARE Climate Justice Center
By Oxfam and CARE Climate Justice Center
THE HAGUE, Netherlands , Oct 8 2025 (IPS)
New research by Oxfam and the CARE Climate Justice Centre finds developing countries are now paying more back to wealthy nations for climate finance loans than they receive—for every USD 5 they receive, they are paying USD 7 back, and 65 percent of funding is delivered in the form of loans.
This form of crisis profiteering by rich countries is worsening debt burdens and hindering climate action. Compounding this failure, deep cuts to foreign aid threaten to slash climate finance further, betraying the world’s poorest communities, who are facing the brunt of escalating climate disasters.
Some key findings of the report:
“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.”
This failure is occurring as rich countries are conducting the most vicious foreign aid cuts since the 1960s. Data by the OECD shows a 9 percent drop in 2024, with 2025 projections signaling a further 9–17% cut.
As the impacts of fossil fuel-fueled climate disasters intensify—displacing millions of people in the Horn of Africa, battering 13 million more in the Philippines, and flooding 600,000 people in Brazil in 2024 alone—communities in low-income countries are left with fewer resources to adapt to the rapidly changing climate.
“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.”
Adaptation funding is also critically underfunded, receiving only 33 percent of climate finance, as investors favor mitigation projects with more immediate financial returns.
Ahead of COP30, Oxfam and CARE are calling on rich countries to:
Live up to climate finance commitments: Provide the full USD 600 billion for 2020–2025 and clearly outline how they plan to scale up to the agreed USD 300 billion annually, and lead on the USD 1.3 trillion Baku to Belém roadmap.
You can read the full report here.
The CARE Climate Justice Center (CJC) leads and coordinates the integration of climate justice and resilience across CARE International’s development and humanitarian work. The CJC is an initiative powered by CARE Denmark, CARE France, CARE Germany, CARE Netherlands, and CARE International UK.
Results of a global survey by Oxfam International and Greenpeace show 8 out of 10 people support paying for public services and climate action through taxing the super-rich.
The research was conducted by first-party data company Dynata in May-June 2025, in Brazil, Canada, France, Germany, Kenya, Italy, India, Mexico, the Philippines, South Africa, Spain, the UK and the US.
The survey had approximately 1 200 respondents per country, with a margin of error of +-2.83%. Together, these countries represent close to half the world’s population.
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Excerpt:
Written by Sebastian Clapp.
EU Member States’ defence expenditure rose significantly between 2021 and 2024. The EU has introduced several initiatives to complement national efforts in order to boost defence spending and collaboration.
Member States’ defence budgetsAfter severely under-investing in defence for years, EU Member States have significantly increased their defence spending since Russia’s full-scale invasion of Ukraine in 2022. In 2021, the combined defence budgets of the 27 EU Member States amounted to around €218 billion. In 2024, defence spending across the EU-27 already amounted to €343 billion, or 1.9 % of the EU’s gross domestic product. Projections indicate that in 2025. expenditure could reach €392 billion at current prices (€381 billion in 2024 prices), or 2.1 % of GDP. North Atlantic Treaty Organization (NATO) member states agreed to a new defence investment commitment of 5 % of GDP at the 2025 NATO Summit in The Hague. By 2035, they vowed to dedicate a minimum of 3.5 % of GDP each year, to fund core defence needs and fulfil capability targets. In addition, they will allocate up to 1.5 % of GDP annually to tasks such as safeguarding critical infrastructure, securing networks, enhancing civil preparedness and resilience, fostering innovation, and reinforcing the defence industrial base. Increasing the guideline from 2 % to 3.5 % of GDP will demand significant additional spending for the 23 NATO member states that are also EU members, requiring an extra €254 billion and raising total defence expenditure to around €635 billion, according to the European Defence Agency.
Despite EU Member States’ sustained efforts to enhance readiness and strengthen their armed forces, they continue to lag behind other major powers in overall defence spending. The United States has consistently devoted over 3 % of GDP to defence since 2008; in 2024, it spent €845 billion, or 3.1 % of GDP – nearly two and a half times the combined EU total of €343 billion. EU defence budgets are set nationally, leading to fragmentation, duplication of effort and reduced efficiency. Although EU spending exceeds that reported by Russia (€107 billion) and China (€250 billion) – and those amounts are probably much higher than officially communicated – these countries are likely to achieve greater cost-effectiveness due to centralised planning, lower prices and less fragmentation. Russia’s defence budget reached an estimated €234 billion in 2024 in purchasing power parity terms (about 5.5 % of GDP) and is projected to rise further.
EU defence funding programmesWhile defence remains a national competence, the EU plays a complementary role by reinforcing Member States’ efforts through both support for higher national defence spending and the use of EU budgetary resources. The EU has launched a range of programmes to encourage stronger collaboration:
Moreover, the Commission has proposed €131 billion for defence and space in the 2028-2034 MFF.
European Parliament positionParliament has repeatedly urged higher defence spending, supporting both increased national budgets and greater funding for EU defence programmes alongside deeper cooperation among Member States.
Read the complete briefing on ‘EU defence funding‘ in the Think Tank pages of the European Parliament.
Citizens are calling on the European Parliament to recognise and strengthen the role of women in building and sustaining peace. Many citizens have written to the President of the European Parliament on this subject since September 2025, asking her to actively support women’s participation in all peace and security decision-making processes.
We replied to citizens who took the time to write to the President (in English, French and Romanian):
Main elements of our reply EnglishThe European Parliament and its President strongly support the active participation of women in peace processes.
At the European Parliament’s meeting on the occasion of International Women’s Day, President Metsola said that ‘peace is stronger when women have a voice’. She pointed out that despite their suffering and sacrifices, women are too often excluded from decision-making about war and peace. President Metsola said that Parliament had always championed the United Nations’ women, peace and security agenda. ‘Working with the United Nations (UN), the North Atlantic Treaty Organization (NATO) and partners worldwide, we continue to push for women’s full participation in shaping peace and security’, she added.
European Parliament positionIn its resolution of July 2025 on the UN’s Sustainable Development Goals, the European Parliament calls for women’s full, equal and meaningful participation and leadership in decision-making roles, including in the areas of peace and security. Parliament also emphasises the vital role of women in peacebuilding, as outlined in the UN women, peace and security agenda.
The European Parliament’s May 2025 resolution underlines that the EU must ensure consistent financing for initiatives that promote gender-sensitive leadership, protect women’s rights, and fight sexual and gender‑based violence in conflict and post-conflict settings.
In its resolution of April 2025 on the common security and defence policy, the European Parliament states that including gender perspectives in external relations and implementing the women, peace and security agenda are long-standing priorities for the EU. Parliament highlights that it is important to strengthen women’s participation in conflict prevention and resolution, peace negotiations, peacebuilding and peacekeeping, humanitarian action and post-conflict reconstruction.
Further informationYou may find the following information useful:
Le Parlement européen et sa Présidente soutiennent fermement la participation active des femmes aux processus de paix.
Au cours de la réunion du Parlement européen organisée à l’occasion de la Journée internationale des femmes, Roberta Metsola, Présidente du Parlement européen, a affirmé que «la paix est plus solide lorsque les femmes peuvent faire entendre leur voix». Elle a souligné que, malgré leurs souffrances et leurs sacrifices, les femmes sont trop souvent exclues des processus de décision en matière de guerre et de paix. Madame Metsola a déclaré que le Parlement avait toujours défendu le programme des Nations unies concernant les femmes, la paix et la sécurité. Elle a ajouté qu’ « en collaboration avec les Nations unies, l’Organisation du traité de l’Atlantique Nord (OTAN) et nos partenaires dans le monde entier, nous continuons d’œuvrer pour la pleine participation des femmes à l’instauration de la paix et de la sécurité ».
Position du Parlement européenDans sa résolution de juillet 2025 sur les objectifs de développement durable des Nations unies, le Parlement européen réclame la participation pleine, égale et significative des femmes et la possibilité pour elles d’accéder à des fonctions de direction et de prise de décision, y compris dans les aspects de la paix et de la sécurité. Le Parlement souligne également le rôle essentiel des femmes dans la consolidation de la paix, comme le souligne le programme des Nations unies concernant les femmes, la paix et la sécurité.
Dans sa résolution de mai 2025, le Parlement européen insiste sur le fait que l’Union doit garantir un financement cohérent des initiatives visant à promouvoir une gouvernance sensible au genre, à protéger les droits des femmes et à lutter contre les violences sexuelles et sexistes dans les situations de conflit et d’après-conflit.
Dans sa résolution d’avril 2025 sur la politique de sécurité et de défense commune, le Parlement européen affirme que l’intégration d’une perspective de genre dans les relations extérieures et la mise en œuvre du programme concernant les femmes, la paix et la sécurité constituent des priorités de longue date pour l’Union. Le Parlement précise qu’il importe de renforcer la participation des femmes aux activités de prévention et de résolution des conflits, aux négociations de paix, à la consolidation et au maintien de la paix, à l’action humanitaire et à la reconstruction au lendemain des conflits.
Pour en savoir plusLes informations suivantes pourraient vous être utiles :
Parlamentul European și președinta acestuia sprijină ferm participarea activă a femeilor la procesele de pace.
La reuniunea Parlamentului European organizată cu ocazia Zilei Internaționale a Femeii, Roberta Metsola a declarat că „pacea este mai durabilă atunci când femeile își fac auzită vocea”. Președinta a subliniat că, în ciuda suferințelor prin care trec și a sacrificiilor pe care le fac, femeile sunt prea adesea excluse din procesul prin care se iau deciziile legate de război și pace. Roberta Metsola a declarat că Parlamentul a susținut întotdeauna Agenda ONU privind femeile, pacea și securitatea. „În cadrul colaborării noastre cu Națiunile Unite (ONU), cu Organizația Tratatului Atlanticului de Nord (NATO) și cu diverși parteneri din întreaga lume, milităm în continuare pentru participarea deplină a femeilor la construirea păcii și securității”, a adăugat.
Poziția Parlamentului EuropeanÎn rezoluția sa din iulie 2025 referitoare la obiectivele de dezvoltare durabilă ale ONU, Parlamentul European a solicitat participarea deplină, egală și semnificativă a femeilor și posibilitatea ca ele să aibă acces la funcții decizionale și de conducere, inclusiv în toate aspectele referitoare la pace și securitate. Parlamentul a evidențiat și rolul vital al femeilor și fetelor în consolidarea păcii, astfel cum se subliniază în Agenda ONU privind femeile, pacea și securitatea.
Rezoluția Parlamentului European din mai 2025 subliniază că Uniunea trebuie să asigure finanțarea solidă a inițiativelor care promovează o conducere ce ia în considerare dimensiunea de gen, care protejează drepturile femeilor și care combat violența sexuală și bazată pe gen în situații de conflict și post-conflict.
În rezoluția sa din aprilie 2025 referitoare la politica de securitate și apărare comună, Parlamentul European a declarat că integrarea perspectivelor de gen în relațiile externe și punerea în aplicare a Agendei privind femeile, pacea și securitatea sunt priorități de lungă durată pentru Uniunea Europeană. Parlamentul a scos în evidență cât este de important să se îmbunătățească participarea femeilor la prevenirea și soluționarea conflictelor, la negocierile de pace, la consolidarea și menținerea păcii, la acțiunile umanitare și la acțiunile de reconstrucție după conflicte.
Informații suplimentareUrmătoarele informații v-ar putea fi utile:
Citizens often send messages to the President and the European Parliament expressing their views and/or requesting action. The Citizens’ Enquiries Unit (AskEP) within the European Parliamentary Research Service (EPRS) replies to these messages, which may sometimes be identical as part of wider public campaigns.