The Monsoon’s Fury and the Unseen Ledger

Grandfather always said the monsoon was a blessing, washing the dust from the fields and bringing life to their village nestled beside the Sundarbans mangroves.

But this year, for young Rina, the blessing felt more like a curse.

The rains came heavier, the tides higher, and the salt water crept further inland, poisoning the soil her family had farmed for generations.

The small dam, built with community effort but without proper engineering, had crumbled.

Now, their fishing nets lay idle, and the honey-gathering season, a crucial source of income, was jeopardized.

Rina knew the mangroves protected them—each hectare a natural barrier against floods, a nursery for fish, and a haven for bees.

But restoring them, building stronger defenses, required money.

Money that, for communities like hers, felt perpetually out of reach, caught in a global financial system that rarely looked beyond spreadsheets to see the faces on the frontlines of climate change.

Her struggle is not unique.

Across the globe, local actors—the very people best positioned to implement and benefit from climate and nature solutions—receive less than 15 percent of available climate and nature finance (Global Landscapes Forum (GLF), 2025).

This glaring funding gap is one of the most critical challenges debated at global gatherings like the COP30 climate summit in Belém, Brazil, where the Global Landscapes Forum (GLF) recently held its 8th Investment Case Symposium.

The gathering, which attracted 4,000 people from 147 countries (Global Landscapes Forum (GLF), 2025), emphasized a singular, urgent truth: finance must evolve.

It is a profound planetary urgency, as Thomas Schoos, Director General at Luxembourg’s Ministry of Environment, Climate and Biodiversity, reiterated, highlighting the need for systemic changes in financial mechanisms to drive a fair, inclusive, and sustainable transition (Global Landscapes Forum (GLF), 2025).

This is the core problem that demands fixing: how do we reshape finance into a force that truly allows humanity to prosper within planetary boundaries?

In short: To fix climate finance, global efforts must channel more capital to local actors and nature-based solutions.

This involves evolving financial mechanisms, leveraging AI to match investors with projects, and addressing challenges like data quality and the digital divide for equitable impact.

Why This Matters Now: The Urgent Evolution of Climate Capital

Rina’s village, like countless others, embodies the urgency Éliane Ubalijoro, Director General of CIFOR-ICRAF, articulated at the GLF Symposium.

She spoke of science, local knowledge, and capital converging as never before, presenting a decisive moment in history.

If we act now, she urged, we can reshape finance into a force that allows humanity to prosper within planetary boundaries (Éliane Ubalijoro, Global Landscapes Forum (GLF), 2025).

This call for a fundamental overhaul of climate finance is not merely academic; it is driven by the escalating impacts of climate change, from rising sea levels to devastating droughts, which disproportionately affect vulnerable communities and the global economy.

The current system, while providing significant sums, struggles to effectively channel funds where they are most needed and most impactful: to the local actors who are stewarding landscapes and implementing grassroots solutions.

This disconnect is a critical barrier to achieving global climate goals.

The discussions at COP30 and the GLF Symposium underscored a collective realization that traditional financial models are insufficient.

They often lack the agility, transparency, and local understanding required to support diverse, community-led initiatives effectively.

The time for incremental adjustments is past; what is required now is a bold, innovative transformation of the entire climate finance architecture.

The Core Problem: Capital Lost in Translation

The central issue in climate finance today is not just about the absolute amount of money available, but where it goes—or, more accurately, where it does not go.

As noted, less than 15 percent of climate and nature finance currently reaches local actors (Global Landscapes Forum (GLF), 2025).

This statistic is a stark illustration of capital lost in translation, failing to bridge the gap between global intentions and local realities.

The problem, in plain words, is systemic: large-scale investment mechanisms are often designed with institutional players in mind, leading to complex application processes, high due diligence costs, and a preference for large, easily quantifiable projects.

These barriers effectively exclude smaller, community-led initiatives, even though these are often the most effective at frontline climate adaptation and mitigation.

The counterintuitive insight is that the very systems designed to manage and disburse vast sums of climate capital are, in many ways, ill-equipped to handle the granular, localized, and often informal nature of effective climate action.

While banks have historically been reluctant to make loans to smallholders due to perceived high risk and administrative overhead, this is precisely where innovative finance must step in.

Without a deliberate shift to empower local actors, much of the global climate finance will fail to deliver its intended impact, leaving communities vulnerable and perpetuating the cycle of environmental degradation.

A Smallholder’s Struggle for Credit

Consider a smallholder farmer in Cote d’Ivoire.

She wants to invest in drought-resistant crops and soil restoration techniques after years of unpredictable weather patterns.

She has local knowledge passed down through generations, understands her land intimately, and has a clear plan.

But when she approaches a traditional bank, she is met with skepticism.

She lacks collateral, formal financial records, and the complex business plans typically required.

The bank sees risk, not potential.

Her project, though high-impact for her family and local ecosystem, is too small, too unconventional for their existing frameworks.

This is a common story, illustrating the difficulty small-scale farmers face in accessing the capital needed to adapt and innovate, leaving them trapped in a cycle of vulnerability.

As Rekia Foudel, managing partner of Barka Fund, observed, smallholder farmers are the most impacted by climate change and where we want to see most of the change happen (Global Landscapes Forum (GLF), 2025).

What the Research Really Says: Innovative Pathways Emerge

The 8th GLF Investment Case Symposium showcased a growing consensus: the old ways of financing climate action are insufficient.

New, innovative pathways are emerging, driven by a blend of strategic government initiatives, creative financial instruments, and the transformative potential of artificial intelligence.

1. Bridging the Local Funding Gap with AI

New initiatives are actively leveraging AI to directly match investors with community-led projects, aiming to address the critical funding gap for local actors (Global Landscapes Forum (GLF), 2025).

Luxembourg and the GLF are co-developing the Rio Changemakers Initiative, an AI-enabled global marketplace.

This platform will connect investors with high-impact, locally-led projects, using digital tools to match capital with purpose at unprecedented speed and scale, guided by science-based metrics and transparent reporting (Thomas Schoos, Global Landscapes Forum (GLF), 2025).

This promises a more efficient and equitable distribution of climate finance.

2. Empowering Smallholders through Innovative Finance

Innovative financial instruments and digital tools are transforming smallholders’ access to crucial funding (Global Landscapes Forum (GLF), 2025).

Mechanisms like supply chain finance, where buyers advance credit to smallholder producers, are being scaled up using certification, traceability, and digital finance tools (Marco Boscolo, Food and Agriculture Organization (FAO), 2025).

Additionally, initiatives like the CRDB Bank Foundation in Tanzania are providing financial literacy to over 100,000 Tanzanians in the agricultural sector, guiding them to set up interest-free bank accounts and track cash flow, helping them become profitable and invest in restorative solutions (Global Landscapes Forum (GLF), 2025).

3. Valuing Nature with Large-Scale Funds

Brazil has launched a significant fund recognizing the economic and ecological value of standing forests, aiming to complement existing funding sources with more capital for forest support (Global Landscapes Forum (GLF), 2025).

Brazil’s Tropical Forest Forever Facility (TFFF), a 125 billion USD fund, will be invested in emerging markets, using profits to support countries with low and declining deforestation rates (Global Landscapes Forum (GLF), 2025).

This offers a powerful financial incentive for conservation, aligning economic growth with ecological preservation, as Garo Batamanian, Director General of Brazil’s Forest Service, emphasized.

4. AI’s Role in Enhancing Climate Finance Efficiency

AI holds significant potential to enhance efficiency, reduce uncertainty, and accelerate due diligence in climate finance (Global Landscapes Forum (GLF), 2025).

Companies like Latimpacto are using AI to map capital flows and impact activities by analyzing over 200,000 news items monthly, transforming scattered data into structured knowledge to reduce investor uncertainty (Carolina Suarez, Global Landscapes Forum (GLF), 2025).

Benoît Clément of Evercity also noted how AI helps build risk models for climate finance, providing real-time data on assets and supply chains.

A New Financial Playbook: Actionable Steps for Fixing Climate Finance

To genuinely fix climate finance and ensure capital flows to nature-based solutions and local climate action, a multi-faceted approach is essential.

Here is a playbook for driving impactful change:

• Prioritize Direct Funding to Local Actors.

  Acknowledge that less than 15 percent of climate and nature finance currently reaches local actors (Global Landscapes Forum (GLF), 2025).

  Design funding mechanisms, such as the Rio Changemakers Initiative, that specifically channel capital to community-led projects, leveraging digital tools and AI to streamline the matching process.

• Develop and Scale Innovative Financial Instruments.

  Move beyond traditional banking models.

  Support the expansion of tools like supply chain finance, microfinance schemes, and village savings and loan associations.

  Integrate certifications and traceability tools to make these modalities scalable and attractive to investors (Marco Boscolo, Food and Agriculture Organization (FAO), 2025).

• Invest in Financial Literacy and Capacity Building.

  Empower smallholders and local communities by providing financial literacy training.

  The CRDB Bank Foundation’s initiative in Tanzania, offering financial literacy to over 100,000 agricultural Tanzanians, is a prime example (Global Landscapes Forum (GLF), 2025).

  This ensures recipients can effectively manage funds and demonstrate profitability.

• Value and Invest in Nature’s Capital.

  Create and support large-scale funds, like Brazil’s Tropical Forest Forever Facility (125 billion USD), that recognize the full value of standing forests and natural ecosystems (Global Landscapes Forum (GLF), 2025).

  Invest in projects that offer clear ecological and economic benefits, such as mangrove reforestation in Bangladesh, which sequesters 24 metric tons of carbon per hectare and supports 100,000 livelihoods (Global Landscapes Forum (GLF), 2025).

• Harness AI Responsibly for Transparency and Efficiency.

  Utilize AI to map capital flows, analyze impact activities, and build risk models for climate finance.

  This can reduce uncertainty for investors and accelerate due diligence (Carolina Suarez, Global Landscapes Forum (GLF), 2025).

  However, ensure AI tools are built with transparency and robust safeguards.

• Foster Public-Private and Cross-Sector Partnerships.

  Engage governments, multilateral organizations, NGOs, and the private sector (e.g., WBCSD members) to scale investment in restoration and sustainable land management.

  For companies, addressing climate risks in supply chains is increasingly a priority for business resilience.

Navigating AI’s Dual Edge: Promises and Perils in Climate Finance

The question of whether AI will make or break the climate is complex, as speakers at the GLF Symposium were divided.

While its promise in supercharging climate finance is clear, its perils demand careful navigation.

On the one hand, AI offers immense potential for efficiency.

It can transform scattered data into structured knowledge, reducing uncertainty for investors and accelerating due diligence for complex projects (Carolina Suarez, Global Landscapes Forum (GLF), 2025).

AI can help build real-time risk models for climate finance, accessing data on assets, supply chains, and landscapes (Benoît Clément, Evercity, Global Landscapes Forum (GLF), 2025).

It can also enhance financial processes, accounting, and reporting for communities, as noted by Josimara Baré of the Rutî Indigenous Fund (Global Landscapes Forum (GLF), 2025).

However, significant challenges exist.

Benoît Clément pointed out problems with AI’s data quality, highlighting that results generated by AI can be opaque; we cannot see how they came to be (Global Landscapes Forum (GLF), 2025).

This lack of transparency undermines trust.

Furthermore, concerns about data governance are paramount, as many individuals and institutions do not get to decide how their data is used (Global Landscapes Forum (GLF), 2025).

Daouda Sembene, CEO of AfriCatalyst, raised the critical issue of the digital divide.

While organizations in rich countries can leverage AI for efficiency, many counterparts in the Global South simply lack access, widening existing inequalities (Global Landscapes Forum (GLF), 2025).

For AI to truly benefit global climate action, especially in the Global South, these issues of equitable access, transparency, and data governance must be urgently addressed.

Measuring Progress: Tools and Cadence for Impactful Investment

To ensure climate finance is effectively fixed and delivers tangible impact, a robust framework of tools, metrics, and consistent review is essential.

Key Tools and Resources:

• The Rio Changemakers Initiative is an AI-enabled global marketplace designed to match investors with high-impact, locally-led climate biodiversity, land, and community solutions (Thomas Schoos, Global Landscapes Forum (GLF), 2025).
• Financial Literacy Platforms, such as the CRDB Bank Foundation’s platform, guide smallholders in financial management.
• AI-powered Data Mapping and Risk Models, offered by companies like Latimpacto and Evercity, enhance due diligence and reduce investor uncertainty.
• Certification and Traceability Tools are digital instruments that enable the scaling up of supply chain finance modalities for sustainable products.

Key Performance Indicators (KPIs):

To measure the success of climate finance interventions, focus on:

• Direct Funding to Local Actors: This tracks the percentage and volume of capital successfully channeled to community-led projects.
• Nature Capital Valued: This measures growth in the financial recognition and investment in standing forests and ecosystems, for example, through the TFFF’s impact.
• Smallholder Resilience & Profitability: This looks at improvements in smallholder income, adoption of sustainable practices, and access to formal financial services.
• Carbon Sequestration & Biodiversity Gains: This quantifies environmental benefits from nature-based solutions, such as metric tons of carbon sequestered by mangroves.
• Transparency & Accountability: This assesses adherence to ethical AI standards and clear reporting on capital flows and impact.

Review Cadence:

A structured review cadence ensures accountability and adaptability.

• Quarterly Investment Impact Reviews: Regularly assess the performance of financed projects, focusing on environmental, social, and financial outcomes.
• Bi-annual Policy & Ethics Audits: Review the governance of AI tools and financial instruments to ensure they align with ethical standards, privacy, and equitable access, especially for the Global South.
• Continuous Stakeholder Engagement: Maintain open channels with local communities, smallholders, and implementing partners to gather feedback and adapt strategies dynamically.

FAQ

• What is the biggest challenge in climate finance today? A major challenge is that less than 15 percent of climate and nature finance currently reaches local actors, despite their critical role on the frontlines of climate impacts and solutions.

  This funding gap needs to be addressed for effective climate action (Global Landscapes Forum (GLF), 2025).

• How is Luxembourg contributing to climate finance solutions? Luxembourg announced a EUR 320 million Climate Nexus Investment Program and is co-developing the Rio Changemakers Initiative.

  The latter is a science-guided, AI-enabled global marketplace designed to connect investors with high-impact, locally-led projects to accelerate sustainable investment (Global Landscapes Forum (GLF), 2025).

• What is Brazil’s Tropical Forest Forever Facility? Brazil announced a USD 125 billion fund, the Tropical Forest Forever Facility (TFFF), which will be invested in emerging markets.

  Its profits will support countries with low and declining deforestation rates, recognizing the full value of standing forests (Global Landscapes Forum (GLF), 2025).

• Can AI help improve climate finance? Speakers at the symposium were divided.

  Proponents argue AI can map capital flows, analyze impact, reduce uncertainty for investors, and accelerate due diligence.

  However, concerns exist regarding data quality, AI’s opaque nature, data governance, and the digital divide limiting access in the Global South (Global Landscapes Forum (GLF), 2025).

Conclusion

The monsoon rains may still lash the Sundarbans, and the global climate emergency, as Josimara Baré of the Rutî Indigenous Fund reminds us, demands big changes and big investments (Global Landscapes Forum (GLF), 2025).

But for communities like Rina’s, the path forward is becoming clearer.

The conversations at COP30 and the GLF Investment Case Symposium illustrate a growing understanding: fixing climate finance means not just more money, but smarter, more equitable money.

It requires innovative instruments, a bold embrace of technology like AI when used responsibly, and an unwavering commitment to the local heroes on nature’s frontlines.

This is the urgent, collective work of our time: to ensure that the global ledger of climate action finally reflects the true value of local effort, transforming challenges into a resilient planetary future.

Are you ready to join the movement to reshape finance for the planet and its people?

Glossary

Climate Finance:

Financial resources dedicated to supporting actions that address climate change, including mitigation (reducing emissions) and adaptation (adjusting to impacts).

Sustainable Investing:

An investment approach that considers environmental, social, and governance (ESG) factors alongside financial returns.

Nature-Based Solutions:

Actions to protect, sustainably manage, and restore natural or modified ecosystems to address societal challenges effectively and adaptively, while providing human well-being and biodiversity benefits.

Local Actors:

Individuals, groups, or communities at the grassroots level who are directly involved in implementing climate adaptation or mitigation projects.

Digital Divide:

The gap between individuals, households, businesses, and geographic areas with regard to both their access to information and communication technologies (ICTs) and their use of the internet.

Rio Changemakers Initiative:

A science-guided, AI-enabled global marketplace co-developed by Luxembourg and the GLF to accelerate sustainable investment in climate biodiversity, land, and community solutions.

Tropical Forest Forever Facility (TFFF):

A USD 125 billion fund announced by Brazil to be invested in emerging markets, using profits to support countries with low and declining deforestation rates.

Supply Chain Finance:

Financial arrangements that optimize the management of working capital and liquidity for businesses involved in a supply chain, often used to extend credit to smallholder suppliers.

References

• Global Landscapes Forum (GLF). (2025). What we learned at the 8th GLF Investment Case Symposium.