{"id":5375,"date":"2025-11-19T19:52:49","date_gmt":"2025-11-19T19:52:49","guid":{"rendered":"https:\/\/dornsife.usc.edu\/wrigley\/?p=5375"},"modified":"2025-11-21T19:53:21","modified_gmt":"2025-11-21T19:53:21","slug":"how-climate-finance-to-help-poor-countries-became-a-global-shell-game","status":"publish","type":"post","link":"https:\/\/dornsife.usc.edu\/wrigley\/2025\/11\/19\/how-climate-finance-to-help-poor-countries-became-a-global-shell-game\/","title":{"rendered":"How climate finance to help poor countries became a global shell game"},"content":{"rendered":"\n\n\n\n\n  \n    \n\n\n\n\n\n\n<div\n  class=\"cc--component-container cc--article-hero \"\n\n  \n  \n  \n  \n  \n  \n  >\n  <div class=\"c--component c--article-hero\"\n    \n      >\n\n    \n<div class=\"inner-wrapper\">\n          \n<div class=\"f--field f--image\">\n\n    \n    \n    \n    \n    \n    \n              \n      <img\n                            data-src=\"https:\/\/dornsife.usc.edu\/wrigley\/wp-content\/uploads\/sites\/116\/2025\/11\/Hurricane-Melissa-Yamile-Lage-Getty-Images-768x432.jpeg\"\n          data-srcset=\"https:\/\/dornsife.usc.edu\/wrigley\/wp-content\/uploads\/sites\/116\/2025\/11\/Hurricane-Melissa-Yamile-Lage-Getty-Images-1280x720.jpeg 1280w,https:\/\/dornsife.usc.edu\/wrigley\/wp-content\/uploads\/sites\/116\/2025\/11\/Hurricane-Melissa-Yamile-Lage-Getty-Images-768x432.jpeg 768w\"          data-sizes=\"(min-width:1200px) 75vw, (min-width:768px) 83vw, 100vw\"          class=\"lazyload\"\n        \n                  alt=\"a person in a red shirt and black pants holds their shoes while wading across a flooded street in the Caribbean\"\n        \n        \n                                      \/>\n\n    \n    \n  \n  \n\n<\/div>\n  \n      <div class=\"image-caption\">\n          \n<div class=\"f--field f--description\">\n\n    \n  A resident wades across a street flooded by Hurricane Melissa in October 2025. The storm killed more than 90 people and and caused billions of dollars in damage across the Caribbean. (Photo: Yamil Lage\/AFP via Getty Images)\n\n\n<\/div>\n    <\/div>\n  \n  <div class=\"text-wrapper\">\n    \n              \n<div class=\"f--field f--page-title\">\n\n    \n  <h1>How climate finance to help poor countries became a global shell game<\/h1>\n\n\n<\/div>\n    \n    \n    \n          <span class=\"post-date-field\">November 19, 2025<\/span>\n      <\/div>\n<\/div>\n\n\n  <\/div><\/div>\n\n  \n    \n\n\n\n\n\n\n<div\n  class=\"cc--component-container cc--social-share \"\n\n  \n  \n  \n  \n  \n  \n  >\n  <div class=\"c--component c--social-share\"\n    \n      >\n\n    \n  <div class=\"content-wrapper\">\n    <span class=\"a2a_kit a2a_kit_size_32 addtoany_list\" style=\"line-height: 32px;\">\n      <span class=\"title\">\n        Share\n      <\/span>\n                        <a class=\"a2a_button_copy_link\" target=\"_blank\" href=\"\/#copy_link\" rel=\"nofollow noopener\" title=\"Link\">\n            <span class=\"a2a_svg a2a_s__default a2a_s_copy_link\">\n              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cc--rich-text \"\n\n  \n  \n  \n  \n  \n  \n  >\n  <div class=\"c--component c--rich-text\"\n    \n      >\n\n    \n      \n<div class=\"f--field f--wysiwyg\">\n\n    \n  <p><em>Original story by Shannon Gibson<\/em><\/p>\n<p>Developed countries that grew wealthy from burning fossil fuels, the leading\u00a0<a href=\"https:\/\/weather.metoffice.gov.uk\/climate-change\/causes-of-climate-change\" target=\"_blank\" rel=\"noopener\">driver of climate change<\/a>, have pledged billions of dollars a year to help ecologically vulnerable nations like Jamaica, Cuba, and the Philippines adapt to rising seas and stronger storms and rebuild after disasters\u00a0<a href=\"https:\/\/science.nasa.gov\/earth\/climate-change\/a-force-of-nature-hurricanes-in-a-changing-climate\/\" target=\"_blank\" rel=\"noopener\">worsened by climate change<\/a>.<\/p>\n<p>In 2024, they committed to boost climate finance from $100 billion a year to\u00a0<a href=\"https:\/\/unfccc.int\/news\/cop29-un-climate-conference-agrees-to-triple-finance-to-developing-countries-protecting-lives-and\" target=\"_blank\" rel=\"noopener\">at least $300 billion a year by 2035<\/a>, and to work toward $1.3 trillion annually from a wide spectrum of public and private sources.<\/p>\n<p>But if the world is pouring billions into climate finance, why are developing countries still struggling with recovery costs?<\/p>\n<p>I study the dynamics of global\u00a0environmental and climate politics, including the United Nations climate negotiations, and my lab has been following the climate money.<\/p>\n<p>Governments at the U.N. climate conference in Brazil have been\u00a0<a href=\"https:\/\/cop30.br\/en\/news-about-cop30\/cop30-evening-summary-november-15\" target=\"_blank\" rel=\"noopener\">negotiating a plan<\/a>\u00a0to get closer to $1.3 trillion by 2035 and make it easier for developing countries to access funds. But the world\u2019s climate finance so far has rested on a shaky foundation of fuzzy accounting, one where funding for airports, hotels and even ice cream stores is being counted as climate finance.<\/p>\n<h2>Cooking the climate finance books<\/h2>\n<p>Wealthy nations first promised in 2009 to\u00a0raise $100 billion a year\u00a0in climate finance for developing countries by 2020. Whether they\u00a0<a href=\"https:\/\/www.oecd.org\/en\/topics\/sub-issues\/climate-finance-and-the-usd-100-billion-goal.html\" target=\"_blank\" rel=\"noopener\">hit that target in 2022<\/a>, as claimed, is up for debate.<\/p>\n<p>Researchers have found many cases where the reported numbers were inflated,\u00a0<a href=\"https:\/\/www.cgdev.org\/publication\/has-100-billion-climate-goal-been-reached\" target=\"_blank\" rel=\"noopener\">largely due to relabeling of general aid<\/a>\u00a0that was already being provided and calling it \u201cclimate aid.\u201d<\/p>\n<p>The United Kingdom, for example, claims it is on track to meet its \u00a311.6 billion (about $15.2 billion) pledge, but it is doing so in part by\u00a0<a href=\"https:\/\/www.carbonbrief.org\/analysis-uk-climate-aid-to-hit-11-6bn-goal-but-only-due-to-accounting-rule-change\/\" target=\"_blank\" rel=\"noopener\">reclassifying existing humanitarian and development aid<\/a>\u00a0as \u201cclimate finance.\u201d<\/p>\n<p>This practice undermines the\u00a0<a href=\"https:\/\/careclimatechange.org\/seeing-double-decoding-the-additionality-of-climate-finance\/\" target=\"_blank\" rel=\"noopener\">principle of additionality<\/a>\u00a0\u2013 the idea that climate finance should represent \u201cnew and additional\u201d resources beyond traditional aid, and not simply be a new label on funds already planned for other purposes.<\/p>\n<p>An analysis by the climate news site Carbon Brief suggests that to truly meet its target, the U.K. would need to provide\u00a0<a href=\"https:\/\/www.carbonbrief.org\/analysis-uk-climate-aid-to-hit-11-6bn-goal-but-only-due-to-accounting-rule-change\/\" target=\"_blank\" rel=\"noopener\">78% more than it currently does<\/a>.<\/p>\n<p>The U.K.\u2019s \u201ccreative accounting\u201d is not a one-off.<\/p>\n<p>The Center for Global Development estimates that\u00a0<a href=\"https:\/\/www.cgdev.org\/blog\/100-billion-climate-finance-provided-fact-or-fiction\" target=\"_blank\" rel=\"noopener\">at least one-third<\/a>\u00a0of the new public climate funds in 2022 actually came from existing aid budgets. In some cases, the money had been shifted to climate adaptation projects, but often development projects were relabeled as \u201cclimate finance.\u201d<\/p>\n<p>What\u2019s counted as climate finance comes from a mix of sources and is predominantly provided through loans and grants. Some funding is bilateral, flowing directly from one country to another. Some is multilateral and distributed through organizations, such as the World Bank or the <a href=\"https:\/\/www.greenclimate.fund\/about\" target=\"_blank\" rel=\"noopener\">Green Climate Fund<\/a>, that are funded by the world\u2019s governments. Money from private investors and corporations can also count in this growing but fragmented system.<\/p>\n<p>Countries providing the assistance have been able to stretch the definition of climate finance so they can count almost any project, including some that have little to do with reducing emissions or helping communities adapt.<\/p>\n<p><em><a href=\"https:\/\/dornsife.usc.edu\/profile\/shannon-gibson\/\" target=\"_blank\" rel=\"noopener\">Shannon Gibson<\/a> is a professor in the Wrigley Institute&#8217;s <a href=\"https:\/\/dornsife.usc.edu\/wrigley\/education\/environmental-studies-program\/\" target=\"_blank\" rel=\"noopener\">Environmental Studies Program<\/a>.<\/em><\/p>\n<p><a href=\"https:\/\/theconversation.com\/how-climate-finance-to-help-poor-countries-became-a-global-shell-game-donors-have-counted-fossil-fuel-projects-airports-and-even-ice-cream-shops-268764\" target=\"_blank\" rel=\"noopener\">Read the full story in The Conversation &gt;&gt;<\/a><\/p>\n\n\n\n<\/div>\n\n\n  <\/div><\/div>\n\n\n\n  \n        \n  \n    \n\n\n\n\n\n\n<div\n  class=\"cc--component-container cc--article-related-stories \"\n\n  \n  \n  \n  \n  \n  \n  >\n  <div class=\"c--component c--article-related-stories\"\n    \n      >\n\n    \n  <div class=\"inner-wrapper\">\n              \n<div class=\"f--field f--section-title\">\n\n    \n  <h2>\n          Related Stories\n      <\/h2>\n\n\n<\/div>\n    \n                  <article>\n              \n<div class=\"f--field f--cta-title\">\n\n    \n  <h3>\n          <a href=\"https:\/\/dornsife.usc.edu\/wrigley\/2025\/08\/11\/climate-leadership-us-steps-back-china-steps-in\/\" \n                        class=\"\" \n      >As U.S. steps back from climate leadership, China and other nations step in<\/a>\n      <\/h3>\n\n\n<\/div>\n        <\/article>\n              <article>\n              \n<div class=\"f--field f--cta-title\">\n\n    \n  <h3>\n          <a href=\"https:\/\/dornsife.usc.edu\/wrigley\/2025\/10\/21\/cop30-shows-china-brazil-and-other-countries-remain-committed-to-climate-goals\/\" \n                        class=\"\" \n      >COP30 shows China, Brazil, and other countries remain committed to climate goals<\/a>\n      <\/h3>\n\n\n<\/div>\n        <\/article>\n              <article>\n              \n<div class=\"f--field f--cta-title\">\n\n    \n  <h3>\n          <a href=\"https:\/\/dornsife.usc.edu\/wrigley\/2024\/09\/17\/communicating-climate-change-consciously\/\" \n                        class=\"\" \n      >Communicating Climate Change Consciously: Anxiety and the Environment<\/a>\n      <\/h3>\n\n\n<\/div>\n        <\/article>\n            <\/div>\n\n\n  <\/div><\/div>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":182,"featured_media":5376,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[41],"tags":[99,67,16],"class_list":["post-5375","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-research","tag-climate-finance","tag-environmental-policy","tag-faculty"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.1.1 - 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