When aid dries up? What's next for climate

• Florence School of Transnational Governance
• EUI Climate Workshop
• STG Climate

Seminar as part of the EUI Climate Workshop.

The recent suspension of US climate aid has sent shockwaves through the global climate finance landscape, underscoring the urgent need to explore alternative financing mechanisms to sustain climate action. Relying on traditional aid alone focused on public financing is no longer viable—innovative and diversified funding approaches must be prioritised to bridge the financial gap. 

In this context, the session aims to address this critical issue by exploring innovative approaches to sustaining climate action in the face of financial constraints. In response to the funding crunch, several alternative modalities can be considered:

• Diversification of funding sources: reducing reliance on a single donor by engaging multiple stakeholders, including private sector investments, philanthropic contributions, and public-private partnerships, can create a more resilient financial base for climate initiatives.
• Community-based financing: empowering local communities to pool resources and fund small-scale projects ensures that interventions are tailored to local needs and enhances community ownership.
• Climate funds: issuing green bonds and establishing dedicated climate funds can mobilise resources from investors interested in sustainable projects. These instruments have gained traction as effective means to finance large-scale climate interventions.
• Digital transformation: the use of digital technologies and use of social media for revenue generation and sustaining climate action.

Chair: Joanna Pandera, Adjunct Professor, Florence School of Transnational Governance, EUI

Speakers:

• Sushila Pandit, Policy Leader Fellow, Florence School of Transnational Governance, EUI
• Nina Shengelia, Policy Leader Fellow, Florence School of Transnational Governance, EUI
• Sophie Hölscher, Researcher, Department of Law, and Research Collaborator, Florence School of Banking and Finance, EUI

Conclusions: Julie Pellizzari, Research Associate, Florence School of Transnational Governance, EUI