UN Climate Change Executive Secretary Simon Stiell has called for a fundamental shift in the global climate finance system, urging developed countries, financial institutions and investors to ensure that funding helps developing nations escape mounting debt pressures and build long-term economic resilience.
Speaking at the Seventh Biennial High-Level Ministerial Dialogue on Climate Finance at COP31 in Antalya, Türkiye, on Friday, Stiell warned that many developing countries remain trapped in a cycle of debt, climate disasters and increasingly expensive borrowing, leaving them with fewer resources to protect their people and economies.
“Climate finance must help countries break free,” he said, stressing that meeting international funding targets alone would not necessarily address the actual financial needs of vulnerable nations.
He argued that climate finance must move beyond funding individual projects towards supporting broader economic transformation, strengthening national institutions and creating conditions that attract more investment at lower costs.
Under the new climate finance goals agreed at COP29, developed countries are expected to take the lead in providing $300 billion annually by 2035, while all actors are expected to work together to scale up financing for developing countries from all sources to $1.3 trillion per year by the same year.
Stiell said the Baku-to-Belém Roadmap provides a pathway towards achieving these targets, but stressed that the way climate finance is delivered must change to make the commitments meaningful.
Explaining the financial challenges facing developing countries, Stiell said the growing threat of floods, wildfires, storms and droughts increases borrowing costs even before disasters occur.
When climate shocks strike, government revenues decline while recovery and reconstruction expenses rise, pushing countries further into debt.
This leaves governments with fewer resources to invest in climate adaptation, resilience and low-emission development, reinforcing a cycle of financial vulnerability.
To break this cycle, he called for climate finance that reflects individual countries' economic circumstances and debt sustainability.
He emphasised that funding must be affordable and tailored to national needs rather than delivered through a one-size-fits-all approach.
While private finance, loans and guarantees remain important for meeting global climate goals, he said grants and highly concessional financing would continue to be essential, particularly for least developed countries (LDCs), small island developing states (SIDS) and other vulnerable economies.
He also called for broader international efforts to address debt burdens so that developing countries are not forced to choose between repaying loans and investing in climate resilience.
Stiell identified easier access to climate finance as another major priority, pointing to the complicated administrative requirements and fragmented funding arrangements that developing countries must navigate.
He said countries often face complex procedures to access funding from multiple programmes and institutions, making it difficult to secure resources when they are needed.
“We need procedures simplified,” he said, calling for stronger coordination among financial institutions and reduced administrative burdens.
He also stressed that international climate finance should align with national development priorities rather than requiring countries to reshape their domestic systems to meet external funding requirements.
National treasuries, local governments, development banks and financial institutions already play important roles in financing development, and these institutions should be strengthened rather than bypassed, he said.
Stiell urged international partners to invest in institutional capacity and help developing countries establish effective systems to access, manage and deploy climate finance.
He also underscored the importance of developing and transferring technologies that support climate-resilient and low-emission development.
The UN climate chief further called for stronger cooperation among governments, climate funds, development banks, financial institutions and private investors to turn national climate plans into tangible investments.
He said climate finance, technology transfer and capacity-building must work together around countries' own priorities, ensuring that funding translates into projects that strengthen resilience and improve people's lives.
As an example, he explained that early grant-based support could help countries build institutional capacity and develop investment pipelines, while concessional finance and risk-sharing instruments could subsequently help projects expand.
He said international climate negotiations and cooperation mechanisms could play an important role in bringing different sources of finance together around national development priorities.
Concluding his remarks, Stiell called for a new approach to international climate finance, saying the biennial ministerial dialogues should help translate commitments into more effective delivery.
Established in 2013, the dialogues have contributed to discussions on global climate finance. However, he said they must now help advance a system that supports long-term development rather than focusing solely on individual funding targets.
“Where every dollar invested in development builds a better future. For all countries,” he said.
His remarks at COP31 highlight a central challenge for developing countries such as Bangladesh: securing not only greater volumes of climate finance but also affordable, accessible and predictable funding that can strengthen economic resilience without deepening existing debt pressures.
This story was produced as part of the COP31 Climate Change Media Partnership, a journalism fellowship organised by Internews' Earth Journalism Network, Informed Earth and the Stanley Center for Peace and Security.
