Less than 3% of global climate finance is supporting approaches that protect workers, women, and communities during the shift to greener economies, according to a new report by ActionAid.
The findings, released ahead of COP30 in Brazil have raised alarm over the neglect of just transition initiatives that ensure climate action does not harm vulnerable populations.
The report, Climate Finance for Just Transition: How the Finance Flows, analysed data from the Green Climate Fund and the Climate Investment Funds revealing that just 2.8% of funds are dedicated to just transition approaches.
Only one in 50 projects adequately involve communities while a mere US$1 in every $35 spent on climate initiatives supports these priorities.
ActionAid warned that without proper investment, climate policies risk worsening inequality, forcing workers and communities to bear the brunt of the green transition while polluting industries continue largely unaccountable.
The report highlights real-world impacts including in Maranhão, Brazil where local communities harvesting babassu coconuts have faced pressure and intimidation from industrial agriculture interests.
According to residents, deforestation for corn, soy, and cattle expansion, combined with years of pesticide spraying, has caused health problems and threatens livelihoods.
Jessica Siviero, Climate Justice Specialist at ActionAid Brazil, stressed the wider implications.
“The Amazon forest acts as the lungs of planet Earth, while the Cerrado serves as its veins. COP30 coming to Belém puts the spotlight on industrial agriculture’s role in driving destruction. Agroecological approaches must replace harmful practices, and just transition principles need to be applied to agriculture as well.” Siviero said
Arthur Larok, Secretary General of ActionAid International, said “The world urgently needs action to prevent climate breakdown, but it should be the polluters, not the workers and communities, who pay the price.” Teresa Anderson, the report’s author, added: “No-one should have to choose between a secure job and a safe planet. Without just transition approaches, climate action risks unintended harm, backlash, and delay.”
ActionAid is urging COP30 delegates to commit to a global coordination mechanism for just transition dubbed the Belém Action Mechanism to ensure shared learning, support for frontline communities, and proper implementation of policies that combine climate action with social justice.
With the summit set to begin in Belém, the organisation warns that the world risks leaving behind those most affected by climate change unless urgent steps are taken to fund and implement just transition strategies.
