More than 150 participants from 20 countries — including ministers of finance, development partners, UN agencies, private investors and civil society — gathered today in Bangkok for the Inclusive Climate Finance Dialogue for a Resilient Asia-Pacific, co-organized by the UNDP Climate Finance Network (CFN) and UN Capital Development Fund, with support from partners including the UK Government and Sweden.

Asia-Pacific is among the world’s most climate-vulnerable regions and home to 60% of the world’s population. Emerging and intensifying climate risk are a threat multiplier to ecosystems and livelihoods with women and marginal groups among the most impacted. While the region is investing in climate action, the resources needed to tackle climate change impacts are growing faster than the available funds.

“Every cyclone, every drought, every flood is first a human crisis that soon turns into a fiscal crisis. UNDP's mission is to work with ministries of finance, central banks, and local governments are equipped to respond to crisis with sustainable finance mechanisms, accessible to those who need it most, and embedded in national systems”, said Christophe Bahuet, UNDP Deputy Regional Director for Asia and the Pacific and UNDP Bangkok Regional Hub Director.

Small Island Developing States are showing what works — from Tonga’s climate trust fund to Tuvalu’s budget tagging that unlocked millions. Larger economies like Indonesia’s green sukuk has raised over USD 10 billion, Thailand has raised more than USD 800 million from Sustainability Linked Bond, Nepal is systematically approaching carbon credits; Cambodia and Nepal have taken concrete steps on climate integrated public investment management, and Bangladesh is pioneering gender-responsive budgeting and “Orange Bonds” to channel finance to women and local governments.

Furthermore, locally-led adaptation is in strong action through the UNCDF-designed Performance-Based Climate Resilience Grant (PBCRG) mechanism – Bangladesh, Cambodia, Nepal, Tuvalu and Solomon Islands have strengthened their local planning and budgeting of climate change adaptation investments in a gender sensitive manner. Bangladesh and Cambodia are expanding local government direct access to climate finance from vertical funds using the PBCRG mechanism. In particular, Cambodia is gearing up to set a Sub-National Climate Finance Fund.

The Dialogue provides a platform to sustain climate finance momentum against a backdrop of shifting geopolitics and competing development pressures. Over three days, participants will explore how to make public budgets work harder for climate action, bring governments, businesses and philanthropy together to close funding gaps, and to deliver value for money through small-scale yet high impact locally-led adaptation investments that reach vulnerable communities, and use data and digital tools to make finance more transparent and effective.

“As official development assistance falls, it’s crunch time for countries across the world, including in the Asia-Pacific Region, that have looked to such sources to meet climate finance needs,” said Maria Perdomo, Regional Investment Team Lead for Asia and the Pacific Region of the UN Capital Development Fund, which has a unique capital mandate and capability to act as a catalyst in high-risk markets, particularly in Least Developed Countries, Small Island Developing States, and fragile and conflict-affected countries.

“We need private sector capital to flow for climate action, not only in the region’s middle income countries and the rising stars of the Least Developed Countries that are preparing for graduation. But also to countries and communities in fragile, vulnerable and crisis situations across the Asia-Pacific Region. UNCDF, working with partners across the UN family, is attending this crucial regional dialogue to further progress on those commitments.”

The OECD projects a 9 to 17% drop in Official Development Assistance (ODA) in 2025; on top of a 9% drop in 2024 and the outlook beyond 2025 remains highly uncertain. UNCDF works in partnership with international organizations and UN entities to deliver blended finance solutions – including concessional loans, grants and guarantees – in any sector, to de-risk markets and drive sustainable economic growth. In the Asia-Pacific, UNCDF targets the 'missing middle' — small and medium-sized enterprises and financial intermediaries that are often overlooked by established institutions. By deploying blended finance solutions and attracting private capital, UNCDF derisks small-scale yet high impact investments that build climate resilience and pave the way for future scaling.

The dialogue also provides a great opportunity for the countries to learn from each other and accelerate action to achieve the Nationally Determined Contributions (NDC) and National Adaptation Plans (NAP).

Voices from partners

John Warburton, Head of Climate Change and Environment, Indo-Pacific Regional Department, UK Foreign, Commonwealth and Development Office

Climate finance for adaptation is not just a matter of fairness – it’s a matter of survival.  We must ensure that governments and vulnerable communities on the frontline of the crisis have access to the funding they need to build resilient infrastructure, protect ecosystems, and prepare for the future. 

That’s why the UK’s Foreign and Commonwealth Development Office is proud to be a key funder of UNDP’s Climate Finance Network, as part of its bigger investment programme to build climate resilience across the Indo Pacific region.

Annamaria Oltorp, Head of Development Cooperation-Regional Asia and the Pacific Embassy of Sweden

There is an urgency to act. Climate impacts are accelerating across Asia and the Pacific, disrupting economies, threatening lives and hard-won development gains. Climate finance today is a necessary investment in resilience, stability, and prosperity for generations to come.

We must ensure that the voices of the most vulnerable of today and tomorrow are heard, and that our financial systems are rooted in equity and sustainability, united in our determination to act together.

This gathering is not only about sharing good practices and lessons learned. It is also about mobilizing resources, forging stronger public–private partnerships, and creating the conditions for joint initiatives that will carry momentum beyond the event itself. At its heart, the Dialogue is the backbone of the Climate Finance Network: connecting people, knowledge, and resources across the region to drive collective climate action.

The true measure of success will be seen not in reports or declarations, but in results on the ground: when every dollar spent is better aligned with climate priorities, when ministries of finance are empowered to protect communities, and when local governments and vulnerable groups can recover faster from shocks.

Looking ahead

The Inclusive Climate Finance Dialogue concludes on 28 August with reflections and next steps to sustain regional momentum. Participants are expected to identify pathways for stronger collaboration, new financing initiatives, and practical mechanisms to accelerate access to climate finance. Above all, the Dialogue reinforces that Asia and the Pacific has the leadership and tools to show the world how climate finance can be transformed into resilience.

ABOUT

United Kingdom International Development through its Foreign, Commonwealth and Development Office (FCDO)

This event is supported by United Kingdom International Development through its Foreign, Commonwealth and Development Office (FCDO), which leads the UK’s diplomatic, development and consular work around the world.

 Funding for the Climate Finance Network is delivered through Climate Action for a Resilient Asia (CARA), the UK’s flagship regional programme to build climate resilience in South Asia, Southeast Asia, and the Pacific islands. This programme will build the resilience of economies and vulnerable communities to climate change, conserve the natural environment, and promote low carbon growth.

United Nations Development Programme (UNDP)

UNDP is the leading United Nations organisation fighting to end the injustice of poverty, inequality, and climate change. Working with our broad network of experts and partners in 170 countries, we help nations to build integrated, lasting solutions for people and planet.

Learn more at undp.org or follow @UNDP.

UN Capital Development Fund (UNCDF)

United Nations Capital Development Fund (UNCDF) mobilizes and catalyses an increase in capital flows for impactful investments in high-risk markets, especially in Least Developed Countries, Small Island Developing States and countries in special situations. By crowding in capital through the deployment of risk-absorbing financial instruments, mechanisms and structuring advisory, UNCDF contributes to job creation and sustained economic growth in more than 70 countries.

In partnership with UN entities and development partners, UNCDF operates with speed and agility to deliver scalable, blended finance solutions to drive systemic change and pave the way for commercial finance and scale up by development finance institutions and multilateral development banks.