Opinion: Understanding climate finance - The backbone of climate justice

With the dust having settled on COP29 in Baku, Azerbaijan, one term continues to dominate climate discussions: climate finance. While it may sound like an abstract concept, climate finance is the lifeblood of global efforts to address climate change and achieve climate justice.

It represents not just the flow of funds but a commitment to equity, sustainability, and the survival of communities most vulnerable to climate impacts. The conversation around climate finance today is as critical as ever, given its implications for both mitigating the climate crisis and addressing the inequalities it perpetuates.

The origins of climate finance can be traced to the Rio Earth Summit in 1992, where the United Nations Framework Convention on Climate Change (UNFCCC) established the principle of "common but differentiated responsibilities."

Recognising the disproportionate contributions to global emissions, developed countries were tasked with providing financial assistance to support developing nations in adapting to and mitigating climate change. This commitment was further formalised at COP15 in Copenhagen in 2009 when developed nations pledged to mobilise $100 billion annually by 2020.

However, this promise has not been fully realised, with current funding estimates falling short of the target. Instruments like the Green Climate Fund (GCF), established in 2010, have sought to address this gap by channelling resources to countries most in need.

Climate finance plays a pivotal role in combating climate change. For mitigation, it funds projects such as renewable energy infrastructure, energy efficiency upgrades, and large-scale reforestation initiatives, all aimed at reducing greenhouse gas emissions.

On the adaptation front, it supports measures that enhance the resilience of vulnerable communitiessuch as investments in climate-smart agriculture, disaster preparedness, and sustainable water management. For nations like Kenya, these funds are vital to safeguarding livelihoods and reducing climate vulnerabilities.

Equally important, climate finance underpins climate justice by acknowledging the historical responsibility of industrialised nations and prioritising support for those who have contributed least to the crisis but bear its heaviest burdens.

The presence of climate finance can unlock transformative potential. Countries can implement large-scale projects, invest in green technologies, and shield their populations from climate shocks. However, when funding falls short or is inaccessible, the consequences are dire.

Vulnerable communities are left exposed to devastating climate impacts, such as prolonged droughts, flooding, and rising sea levels, perpetuating poverty and inequality. The absence of adequate finance also undermines the realisation of fundamental rights, including access to food, water, and health.

This centrality of climate finance to achieving climate justice is well-supported by both international and national legal frameworks. The UNFCCC, adopted in 1992, explicitly requires developed nations to provide financial resources to support developing countries.

The Kyoto Protocol, signed in 1997, builds on this obligation by emphasising the need for technological and financial transfers. More recently, the Paris Agreement of 2015, particularly in Article 9, reiterates the commitment to mobilise financial resources, stressing the need for greater transparency and scalability.

In Kenya, the legal architecture aligns with these international commitments. The Constitution of Kenya 2010 places an obligation on the state to protect the environment and sustainably manage natural resources.

The Climate Change Act of 2016 provides a robust framework for addressing climate change, including the establishment of a Climate Change Fund to mobilise and deploy resources. Complementing this, Kenya’s National Climate Change Action Plan (NCCAP) provides a roadmap for implementing climate finance initiatives in line with both domestic priorities and global obligations.

As the world reflects on the outcomes of COP29, it is evident that addressing climate finance challenges requires renewed commitment and innovative solutions. Developed countries must meet their $100 billion annual pledge to rebuild trust and empower developing nations.

Accessibility to funds must be streamlined, ensuring that nations like Kenya can efficiently access resources and implement projects that directly benefit their populations. Beyond traditional funding mechanisms, innovative approaches such as green bonds, blended finance, and carbon markets must be scaled up to bridge the funding gap.

Transparency and accountability in the allocation and utilisation of these resources are equally critical, ensuring that they reach the communities that need them the most.

The future of climate justice hinges on robust climate finance. For Kenya and many other nations, adequate funding is not merely an economic issue rather it is a matter of survival. As the impacts of climate change intensify, the urgency for financial commitments to translate into tangible actions cannot be overstated.

While progress has been made, there is still much to do to ensure that climate finance becomes a tool of transformation rather than a symbol of unfulfilled promises.

In this decisive moment, every stakeholder has a role to play. Governments must prioritise climate finance in their policies, international organisations must hold nations accountable to their pledges, and civil society must continue to advocate for equity and justice.

For individuals, the call to action is clear: support climate-friendly initiatives, demand accountability from leaders, and remain vigilant in the global fight for climate justice.

The era of pledges without action must end. It is time to align financial flows with the urgency of the climate crisis and the promise of a just and sustainable future. Climate finance is not just about meeting targets; it is about saving lives and securing a world that works for all.

The writer, Christine Wainaina is programme Consultant at the Kenyan Section of the International Commission of Jurists.