Photo of house collapsing on its side.
Climate finance is meant to help low-income countries adapt to climate change and recover from disasters like hurricanes. (Photo: Alice Welch/USDA.)

How climate finance to help poor countries became a global shell game

Assistance has often rested on fuzzy accounting, with funding for airports, hotels and even ice cream stores being counted as climate finance.
ByShannon Gibson

When Hurricane Melissa tore through the Caribbean in October 2025, it left a trail of destruction. The Category 5 storm damaged buildings in Jamaica, Haiti and Cuba, snapped power lines and cut off entire neighborhoods from hospitals and aid.

Jamaica’s regional tourism, fishing and agriculture industries – still recovering from Hurricane Beryl a year earlier – were crippled.

Melissa’s damage has been estimated at US$6 billion to $7 billion in Jamaica alone, about 30% of the island nation’s gross domestic product. While the country has a disaster risk plan designed to help it quickly raise several hundred million dollars, the damage from Melissa far exceeds that amount.

Whether Caribbean nations can recover from Melissa’s destruction and adapt to future climate change risks without taking on debilitating debt will depend in part on a big global promise: climate finance.

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