With the increasing frequency of fires, floods, droughts and other extreme weather events, countries across the world are facing a new era of climate-linked crises. The international climate finance system – through mitigation, adaptation and potentially now through loss and damage – is seeking to reduce and address these impacts. In parallel, the humanitarian system is increasingly having to respond to climate-linked crisis, or the impacts of climate change on already fragile or conflict-affected states. Both systems are chronically underfunded and increasingly overstretched and must now make difficult choices regarding the way in which funding is raised, distributed and used.
As the climate crisis intensifies, climate and humanitarian finance must find ways to plan and programme together more effectively. While many important debates over principles and mechanisms continue, this paper seeks to provide a broad guide for those engaging at the intersection of climate and humanitarian finance to understand both systems and generate discussion on how both sectors can better coordinate for a more effective response to the climate crisis.
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