Belém, November 15, 2025 – Climate finance from developed countries must directly benefit Indigenous Peoples. This requires a shift away from the current climate finance system—which is overly complex, bureaucratic, and project-based—toward direct financing that is built on trust and grounded in rights.
This issue was highlighted during the discussion, "Bridging the Climate Finance Gap: Make the Global North Deliver," held on the sidelines of the 30th United Nations Climate Change Conference (COP30-UNFCCC) in Belém, Brazil, on Thursday, November 13, 2025. The panel featured Nadia Hadad, Executive Director of MADANI Berkelanjutan; Raoman Smita, Climate Finance, Trade and Law Expert at the Global Law Thinkers Society (GLTS); Hadi Saputra, Researcher at Sawit Watch; Lasti Fardilla Noor, Knowledge Manager at the ICCAs Indonesia Working Group (WGII); Dr. Arjun Kumar K., Executive President of Rural Reconstruction Nepal; Lidy Nacpil, Coordinator of the Asian People's Movement on Debt and Development; and Oliver Rieche, Director of Legal Affairs, NDC and Partnership Balance.
Lasti explained that the current climate finance mechanism is overly complex, lengthy, and centralized, making it difficult for Indigenous Peoples and Local Communities (IPLCs) to directly access the support they are entitled to receive. Yet these communities are among the most affected by climate change while also serving as its frontline defenders.
She pointed to a significant gap in the climate finance negotiations currently taking place at COP30-UNFCCC.
"While climate finance has become a major focus—even in negotiations on the Global Goal on Adaptation, where developing countries are calling for climate finance to be tripled—there has been little discussion about ensuring direct access to funding for Indigenous Peoples and Local Communities," said Lasti Fardilla Noor.
According to Lasti, even large climate finance commitments will have little meaning if Indigenous Peoples and Local Communities cannot access or benefit from them. She therefore called for a transition toward climate finance mechanisms that are more inclusive, equitable, and respectful of community rights.
As an example, she highlighted Dana Nusantara, a climate finance initiative established by the Indigenous Peoples Alliance of the Archipelago (AMAN), the Indonesian Forum for the Environment (WALHI), and the Consortium for Agrarian Reform (KPA). Dana Nusantara uses a simple funding mechanism designed to make access easier while maintaining accountability standards. Rather than treating recipients as passive beneficiaries, the initiative recognizes them as the primary actors who design and implement solutions tailored to their own priorities, needs, and local contexts. This ensures that climate finance delivers tangible benefits directly at the community level.
Dr. Arjun Kumar called for direct, grant-based climate finance for developing countries. In his view, financing climate action through debt places an unfair burden on developing nations.
"Climate finance must not create debt. Grant-based public finance is essential because private finance is driven by profit and often fails to prioritize communities' needs for adaptation, as well as addressing loss and damage," he said.
MADANI Berkelanjutan Executive Director Nadia Hadad reminded participants that climate finance commitments from developed countries are a consequence of their historical emissions and disproportionate use of the world's carbon budget.
"Climate finance is not charity—it is an obligation," she said.
Nadia noted that the long-standing commitment to provide US$100 billion annually in climate finance was never fully met. Meanwhile, the newly agreed New Collective Quantified Goal (NCQG) sets a minimum commitment of US$300 billion per year by 2035, alongside efforts to mobilize up to US$1.3 trillion globally. She urged Indonesia, as a member of both the G20 and BRICS, to actively push developed countries to fulfill these commitments rather than relying solely on bilateral funding channels.
"Indonesia should also play a role in encouraging developed countries to fulfill these commitments—to finance the mitigation and adaptation efforts that are urgently needed, not only for the Global South but for the benefit of the entire world," Nadia said.
At COP29 last year in Baku, Azerbaijan, the agreed climate finance commitments fell far short of expectations. Earlier this month, the COP Presidencies of Azerbaijan and Brazil released the Baku–Belém Roadmap, outlining a pathway to achieve the goal of mobilizing at least US$1.3 trillion in climate finance annually by 2035.
Last week, the Independent High-Level Expert Group on Climate Finance, which has supported international climate finance negotiations since 2021, released its fourth report focusing on pathways to implement the roadmap. The report envisions climate finance coming from a mix of domestic resources, public finance—including multilateral, bilateral, and concessional sources—and private investment.
These financial resources are needed to support the clean energy transition, climate adaptation and resilience measures, loss and damage, the conservation of forests, oceans, and biodiversity, and a just transition away from fossil fuels in developing countries. Achieving this level of financing will require strong commitments and coordinated action from governments, multilateral development banks, and the private sector.
However, wealthy nations have repeatedly failed to fulfill their responsibilities despite being the largest historical contributors to global warming. Increasing reliance on uncertain private finance or loan-based funding risks exposing low-income countries to greater economic vulnerability and debt, rather than delivering the climate justice they rightfully deserve.
