Climate project funding more important as aid ends

March 11, 2025

With USAID, the world's largest aid donor, weakening, climate finance projects can step in even more as an important complement to aid projects. Climate projects, with a focus on high quality and local benefits, can fill the aid gap by improving socio-economic conditions while reducing climate impacts. Businesses can invest in these projects to create a double impact.

USAID is the single largest donor of aid in the world. Now that this is ending due to a drastic US decision, funding for climate projects is becoming an extremely important option. The social benefits of projects will be more important than ever.

Doña Ester Martín in the CommuniTree project, Nicaragua. Photo: Taking Root

 

The trend for climate projects is for them to be of high quality or 'high integrity'. This means that, in addition to climate benefits, they should also benefit local populations and farmers in developing countries and provide an improved environment, increased resilience to extreme weather, more income opportunities, improved health and new jobs. In other words, the same objectives as many aid projects. For example, an improved economy for rural families can mean access to efficient and healthier stoves, solar energy, water purification, biogas, mobile phones, safer food access and schooling for children.

These aspects of climate projects are now even more important as aid freezes. The financing of climate projects by the business sector has a double effect: reduced climate impact and improved socio-economic conditions.

Junior Ranger Rocco in the Loru project in Vanuatu. Photo: Diana Wrangham Plan Vivo

 

These combined values are something that is highlighted by Plan Vivo, a supplier of projects that ZeroMission has worked with since 2006. This is shown not least by all the farmers who are in line to become certified suppliers to Plan Vivo in different parts of the world where projects are located.

Contact us to find out how your company can invest in climate action while making life easier and safer for people living in precarious conditions!

Latest News