Since 2009, countries have promised $100 billion in climate finance each year for developing countries. Year after year, rich countries have broken their promise. Conference after conference, developing countries have been left without adequate tools to properly cut emissions. How can we move from this stalemate finance situation? Could philanthropy deliver on the $100 billion climate finance pledge this COP27?

Can philanthropy deliver on $100 billion climate finance this COP27? Photo credit: Shutterstock

Less than 2 per cent ($6-$10 billion) of global philanthropy ($750 billion) in 2020 was tagged toward climate action (Climate Works Foundation). However, in the past two years, climate philanthropy has seen some positive progress. For example, WINGS (a network for philanthropic groups) launched an International Philanthropy Commitment on Climate Change. More than 500 foundations have committed to act on #PhilanthropyforClimate through climate education for boards and staff, net zero investments and funding to address root causes of climate change. 

In the lead-up to COP26, the IKEA Foundation and Rockefeller Foundation each provided $500 million to support renewable energy transitions in 12 countries. Amazon founder Jeff Bezos launched a $10 billion Earth Fund to finance The Nature Conservancy and World Resources Institute. Philanthropy is also a secret driving force behind many international campaigns, such as Race to Zero and Race to Resilience. How can we raise ambition further on climate philanthropy in the lead-up to COP27?

Climate philanthropy is important for many reasons. First, grant and philanthropic finance fills a gap by catalysing projects, which governments may perceive as too risky or requiring blended financial contributions. For example, at COP26, more than 100 leaders committed to halving deforestation by 2030, with $12 billion in public funds and $7.2 billion in private investment (including philanthropic). Second, philanthropy kick-starts innovation and provides initial capital for ventures that may evolve into viable, sustainable businesses. Third, philanthropy can raise public awareness through advocacy and campaigns, which governments are less likely to fund. Finally, foundations can look into the future: philanthropy is ‘poised like no other actors to focus on long time horizons’ (Active Philanthropy). Philanthropy is agile, responsive, forward-thinking and able to address financial gaps when others will not. 

Critics will argue that philanthropy cannot be a solution to the climate crisis. Some philanthropic foundations have founders who made their money through investing in fossil fuels or damaging ecosystems. Arguably, philanthropic organisations are emblematic of the top 1 per cent holding on to as much wealth as the rest of the world combined, while democratic investment in the climate crisis through tax revenues is left to languish. 

As a student of Public Policy at the Blavatnik School of Government, I want politicians to coherently meet the financial needs of climate-friendly development, particularly in the Global South. But I have not seen politicians act quickly on this matter. There is a role for philanthropy to kick-start investment without the barriers of political personalities or bureaucratic processes. There is a role for philanthropy (alongside other non-state actors) to pave the way for government support through a climate ambition loop. I have worked in climate philanthropy in New Zealand at The Gift Trust and for my own family’s foundation. I have seen numerous, generous people behind philanthropic endeavours who want to contribute to a better world for future generations. They want to contribute now.

If one girl can sit in front of Sweden’s Parliament and mobilise a climate strike of school students, philanthropic organisations can surely come together to mobilise climate finance. Philanthropic and grant finance is needed for renewable energy projects in Africa, food security initiatives in India or adaptation initiatives in Latin America. Collectively, we can help to finally deliver on $100 billion climate finance this COP27

Tessa Vincent has a law, politics and climate philanthropy background and is passionate about building unlikely coalitions to develop climate solutions.