G20 leaders fail to reach deal on climate funding at Rio summit

The G20 summit concluded Monday with no significant progress on unlocking climate financing, as leaders failed to commit to the funding requested by the United Nations to help developing countries address the escalating impacts of global warming.

In a joint statement released during the Rio meeting, G20 leaders acknowledged the need for substantial funding, stating that “trillions of dollars” would be required “from all sources.” However, they did not provide specific commitments or a clear roadmap for securing the funds.

The statement included a pledge to phase out “inefficient fossil fuel subsidies,” falling short of targeting fossil fuel usage itself—one of the primary drivers of climate change.

“The leaders are kicking the can back to Baku,” said Mick Sheldrick, co-founder of advocacy group Global Citizen, referencing the ongoing UN climate talks in Azerbaijan. “They haven’t stepped up to the challenge… This is probably going to make it harder to achieve an agreement.”

The UN climate discussions in Baku have been stalled for over a week, with negotiators struggling to finalize a deal on financing climate adaptation in developing nations. The deadlock centers on the size of the fund, the type of financing mechanisms, and the contributors. Western countries have called on China and wealthy Gulf nations—many of which are dependent on fossil fuel revenues—to contribute to the fund, a point of contention in the negotiations.

UN Secretary-General António Guterres had urged G20 nations to demonstrate “leadership and compromise” in Rio to break the deadlock, but no concrete progress emerged from the talks.

With the Baku negotiations unresolved, experts warn that the lack of decisive action from the G20 could complicate efforts to secure a comprehensive agreement.

The G20’s reluctance to deliver concrete outcomes reflects broader challenges in global climate diplomacy, as countries grapple with balancing immediate economic interests and long-term climate goals.