Global climate finance and policy took a decisive turn this week. Brazil’s COP30 presidency set an ambitious funding roadmap, the EU sealed a 2040 climate deal, and new reports warned of deep inequities in how finance reaches frontline communities. Private finance, however, continues to lag.
Brazil launches plan to scale climate finance to $1.3 trillion a year
Brazil released its Baku to Belém Roadmap, outlining how global climate finance could reach $1.3 trillion a year by 2035, according to Reuters.
The plan urges expanded concessional lending and more effective use of multilateral banks to channel adaptation funding to developing economies ahead of COP30 in Belém.
France leads $2.5 billion pledge to protect Congo Basin forests
France, Germany, Norway, and the UK pledged $2.5 billion over five years to support forest protection in the Congo Basin, the world’s second-largest rainforest.
The “Belem Call for the Forests” aims to align forest protection with poverty reduction and local governance, building on lessons from Amazon and Southeast Asia programmes.
EU agrees 90% emissions-cut target by 2040 — but adds flexibility
The European Union agreed to a 90% emissions reduction by 2040 from 1990 levels, but allowed credit trading and national discretion, according to Euractiv.
Critics said the compromises dilute ambition, while others argue flexibility is vital to maintain industrial competitiveness and public support ahead of COP30.
Less than 3% of global climate aid supports “just transitions”
Only 2.9% of climate-related aid supports worker and community transitions in fossil-fuel regions, according to a new report by ActionAid International.
The study found that of 644 tracked projects, only $630 million targeted employment and social protection. Analysts warned that failing to link decarbonisation to social equity risks political backlash.
Global banks fall short on net-zero transition financing
Major banks have made “minimal progress” on aligning portfolios with net-zero goals, according to a new analysis by the London School of Economics’ Transition Pathway Initiative.
Over 60% of the 50 largest lenders still lack sectoral transition plans. The report calls for regulators to impose clearer disclosure and portfolio-alignment requirements.
ECB admits climate risks rarely change asset valuations
The European Central Bank said that while climate risk is integrated into its collateral framework, it seldom results in asset downgrades or changes to credit ratings.
Officials conceded that gaps in data and inconsistent methodologies limit how much climate exposure currently influences financial supervision.
UN transparency report finds progress but insufficient pace
The UNFCCC Synthesis of Biennial Transparency Reports found that 109 countries are implementing national climate measures, but the pace of decarbonisation remains far from 1.5 °C pathways.
Executive Secretary Simon Stiell said the report proves nations are “implementing real-world action,” though many still lack measurable, verifiable results.
U.S. absence at COP30 could weaken global coordination
Diplomats warned that the absence of senior U.S. officials at COP30 may hinder negotiations on climate finance and loss and damage, according to Climate Home News.
Several European delegates said a reduced American presence risks slowing momentum for new funding mechanisms and undermines multilateral trust.
HSBC relaxes interim climate targets for high-emitting sectors
HSBC updated its climate strategy, widening emissions-reduction targets for oil, gas and power clients to reflect slower sectoral progress, according to ESG Today.
The bank still aims for net-zero financed emissions by 2050, but analysts say the new approach highlights tension between profitability and Paris alignment.
UNEP warns adaptation funding gap remains critical
Developing countries will need $310–$365 billion a year for adaptation by 2035, up from $26 billion in 2023, according to UN News.
UNEP said the gap poses “systemic risks” to global development and called for faster, front-loaded investment in resilience and early-warning systems.
