Over 150 participants from 20 countries, including ministers of finance, development partners, UN agencies, private investors, and civil society representatives, convened 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 (UNCDF), with support from partners such as the UK and Sweden, the dialogue focused on mobilizing climate finance to strengthen resilience across the region. Asia-Pacific, home to 60% of the world’s population, faces acute climate vulnerabilities, with women and marginalized groups disproportionately affected. While investments in climate action are growing, the gap between available funding and the resources needed to tackle climate impacts continues to widen. Christophe Bahuet, UNDP Deputy Regional Director for Asia and the Pacific, emphasized the importance of equipping governments with sustainable finance mechanisms that are embedded in national systems and accessible to those most in need.
Small Island Developing States are already demonstrating effective climate finance models, including Tonga’s climate trust fund and Tuvalu’s budget tagging. Larger economies are also advancing innovative financing: Indonesia’s green sukuk has raised over USD 10 billion, Thailand has raised USD 800 million through Sustainability Linked Bonds, and Nepal is pursuing carbon credit strategies. Cambodia and Nepal are integrating climate considerations into public investment management, while Bangladesh has pioneered gender-responsive budgeting and “Orange Bonds” to direct finance to women and local governments.
Locally-led adaptation efforts are being advanced through the UNCDF-designed Performance-Based Climate Resilience Grant (PBCRG) mechanism, which supports Bangladesh, Cambodia, Nepal, Tuvalu, and the Solomon Islands in planning and budgeting for climate adaptation in a gender-sensitive manner. Bangladesh and Cambodia are expanding local government direct access to climate finance from vertical funds, with Cambodia preparing to establish a Sub-National Climate Finance Fund. These efforts illustrate how small-scale, locally-led investments can generate high-impact climate resilience outcomes.
The dialogue provided a platform for participants to explore how public budgets can more effectively support climate action, strengthen public–private partnerships, and use data and digital tools to improve transparency and impact. Maria Perdomo from UNCDF highlighted the urgency of mobilizing private sector capital, particularly in fragile and vulnerable countries, as official development assistance continues to decline. UNCDF focuses on the “missing middle” — small and medium-sized enterprises and financial intermediaries — deploying blended finance solutions to de-risk high-impact climate investments.
Voices from partner countries reinforced the critical nature of climate finance in the region. John Warburton of the UK Foreign, Commonwealth, and Development Office stressed that adaptation finance is essential for survival and resilience, while Annamaria Oltorp of the Swedish Embassy emphasized the urgency of protecting economies, livelihoods, and development gains from accelerating climate impacts. Participants underscored the importance of equity, sustainability, and the inclusion of vulnerable communities in financial systems.
The dialogue not only highlighted lessons learned and good practices but also focused on mobilizing resources, forging partnerships, and creating conditions for long-term climate finance initiatives. Success will be measured by tangible outcomes: alignment of funds with climate priorities, empowered ministries of finance, and resilient local governments and communities. Concluding on 28 August, the event is expected to set pathways for strengthened regional collaboration, new financing initiatives, and accelerated access to climate finance, reinforcing Asia-Pacific’s leadership in transforming finance into resilience.
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