Only 3pc of climate funds support just transition, report
Environment & Climate
By
Anne Atieno
| Nov 10, 2025
Less than three per cent of global climate finance supports ‘just transition’ approaches that prioritise workers, women and communities in tackling the climate crisis, a new report has revealed.
The Climate Finance for Just Transition report by ActionAid shows that only one in 50 projects adequately listens to or supports people through just transition efforts.
It further notes that just one in every 35 US dollars is spent on initiatives that ensure a fair and inclusive shift to a greener future.
According to ActionAid, the findings demonstrate how communities at the frontline of the climate emergency are being overlooked, leading to harmful practices that deepen existing inequalities.
Released ahead of COP30, the report analysed data from two major global climate funds, the Green Climate Fund and the Climate Investment Funds and concluded that only 2.8 per cent of total climate finance supports just transition initiatives.
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ActionAid International Secretary General Arthur Larok said the world urgently needs climate action that does not place the burden on vulnerable groups.
“Our new report shows just transition approaches are underfunded and people’s needs are at the bottom of the priority list. Something’s got to give. If just transition continues to be overlooked, then there’s a real risk that inequalities will deepen,” Larok warned.
Teresa Anderson, ActionAid’s Global Lead on Climate Justice, added that no one should have to choose between a secure job and a safe planet.
“Just transition approaches ensure that climate action prioritises people’s daily needs and doesn’t push them deeper into poverty. Without them, climate efforts risk unintended harm, backlash and even more delays,” she said.
The report also highlights stories of harm caused by industrial agriculture and fossil fuel companies in the Global South, alongside examples of resilience as communities fight deforestation and pollution.
In Brazil, for instance, communities near Timbiras in Maranhão, part of the Amazon region, depend on babassu coconuts for oil and fibre production. As deforestation advances, they face growing pressure to abandon their forest homes for industrial agriculture.
Jessica Siviero, a Climate Justice Specialist at ActionAid Brazil, said COP30 in Belém offers a chance to address the destruction.
“It is time for the world to move away from harmful industrial agriculture and embrace agroecological approaches that feed people and cool the planet,” she said.
ActionAid is now calling for a “Belém Action Mechanism” to coordinate global just transition efforts, promote shared learning and ensure inclusive implementation at COP30.