Climate finance plays a pivotal role in aiding the world's most vulnerable communities in grappling with the escalating consequences of climate change. By allocating resources for adaptation, building resilience, and undertaking anticipatory actions, it empowers countries to mitigate climate risks and safeguard livelihoods, particularly in regions confronted with both conflict and climate shocks.

Empowering Communities through Climate Finance

What is Climate Finance?

Climate finance refers to the financial resources and other means employed to combat climate change through investments in adaptation, mitigation, and resilience. It encompasses a wide range of sources, such as national governments, international organizations, private enterprises, and grassroots fundraising campaigns. During the COP15 climate summit in 2009, world leaders pledged to mobilize $100 billion annually in climate financing by 2020 to support climate action in developing countries. However, this promise remains unfulfilled. Donors are obligated to not only meet the $100 billion-per-year climate pledge but also direct funds to the most vulnerable countries, ensuring that communities have the necessary resources to effectively respond to the impacts of the climate crisis.Climate finance acts as a crucial tool in addressing the global climate challenge. It enables countries to invest in measures that enhance their ability to adapt to changing climatic conditions and build resilience against the adverse effects of climate change. By providing financial support, it helps communities develop strategies to cope with extreme weather events, sea-level rise, and other climate-related phenomena.

What are some Examples of Climate Finance?

The IRC effectively utilizes climate finance to introduce innovative approaches and enhance adaptation while mitigating the impacts of climate change in areas of greatest need. In Syria, the IRC is collaborating with farmers to identify and provide seeds that are highly adaptable to the changing climate, encouraging local farmers to adapt to the effects of climate change. As part of this project, the IRC is also promoting women's participation in agriculture and scaling up the use of higher-yielding, climate-resilient seeds. This initiative has been expanded to Pakistan, Niger, and South Sudan to improve the efficiency and sustainability of farming practices in these regions.For instance, after the conflict in Syria prevented Fadia* from pursuing a university degree, she joined the IRC's Seeds Security project and received financial assistance and training in climate-adapted agricultural techniques. Fadia's success in agriculture has enabled her to support her family during periods of instability.The IRC also conducted a research pilot program in Nigeria that provided cash assistance to flood-prone communities before a flood occurred. This proactive approach differs from traditional methods that typically provide aid only after a climate-related disaster strikes. Despite the ability to predict 20% of disasters, only 1% of global development assistance is currently allocated to anticipatory action. The results of the IRC's pilot in Nigeria highlight the importance of climate financing for anticipatory programming. Households that received cash assistance before a flood experienced lower rates of hunger compared to those who received aid afterward. Anticipatory cash empowered recipients with the resources to protect their livelihoods, enabling them to take preemptive measures such as stockpiling food and evacuating households and livestock ahead of the disaster. Additionally, recipients invested more in income-generating activities, suggesting that this approach can help build long-term resilience.

Which Countries Need Climate Finance?

The IRC has identified 17 countries that are simultaneously affected by climate change and conflict. Communities in these countries urgently require climate finance to protect themselves from the climate crisis. Despite accounting for only 10.5% of the world's population and emitting just 3.5% of the annual global greenhouse gas emissions, these 17 countries bear 71% of global humanitarian needs. Unfortunately, these communities are often excluded from international climate efforts. The more fragile a country is, the less climate financing it receives. A significant portion of the aid sent to these countries is often misdirected and fails to achieve its intended purpose, focusing on emission mitigation rather than climate adaptation, resilience, and anticipatory action.Global donors can make a significant difference in the outcomes for conflict-affected, climate-vulnerable countries by ensuring equitable distribution of climate finance, prioritizing adaptation efforts, and committing 5% of humanitarian budgets to anticipatory action. Leaders must also ensure that the broader $100 billion-per-year climate pledge is met.For example, Abuk holds her sleeping daughter, Nyirou, outside their flooded home in Northern Bahr El Ghazal, South Sudan. The IRC has identified 16 countries, including South Sudan, that are simultaneously impacted by climate change and conflict.

How can Leaders Improve the Delivery of Climate Finance?

In the midst of the global climate crisis, mitigation and adaptation efforts are crucial lifelines for communities most affected by climate shocks, especially those lacking the resources to cope. To enhance climate mitigation and adaptation, the IRC urges world leaders to improve the delivery of climate finance by:Increasing funding for resilience, adaptation, and anticipatory action in communities facing conflict and climate change. Examples of such adaptation and resilience solutions that require greater investment include strengthening seed security in the face of climate shocks, bolstering anticipatory action programs to anticipate and prevent the impact of predictable climate hazards, and enhancing disaster risk reduction to minimize damage from climate hazards.Ensuring that climate finance reaches underserved communities and complements development and humanitarian efforts by earmarking 18% of all adaptation finance for climate-vulnerable and conflict-affected countries, establishing a 50-50 sub-target balance between mitigation and adaptation finance, and ensuring that loss and damage funds are accessible to conflict-affected countries through partnerships with civil society and local actors.Delivering climate adaptation in conflict-affected regions requires a people-first approach with flexible partnerships that prioritize local actors who understand the needs and dynamics of these communities. To truly reach the most vulnerable, donors must move beyond the traditional exclusive reliance on national governments and embrace a more flexible approach to delivery partners. This means enhancing partnerships with NGOs that can access communities that are beyond the reach of governments, particularly in fragile settings.For instance, Bilal* was able to save his teddy bear during intense flooding in Pakistan, which devastated nearly 10 million acres of land and caused over $30 billion in damages. The IRC invests in Pakistan's climate resilience through school and village-based disaster risk management and reduction initiatives.

What is the IRC Doing to Address Climate Change?

The IRC is actively working in the countries most vulnerable to climate change. Our teams focus on climate adaptation, climate resilience, and crisis response. The IRC responds to local crises while strengthening community resilience and capacity to adapt to a changing climate. Our work includes anticipatory action against climate hazards, supporting community-led natural resource management and water conservation, and training people in sustainable livelihoods—all while placing the needs of women and girls at the center of our work.Donate today to help us build climate resilience and adaptation in the conflict and climate-affected communities worldwide. Learn more about how the IRC is addressing climate change. *Pseudonym used for privacy