The landscape of multilateral climate funds is entering a phase of reflection and reform as institutions explore ways to improve access to climate finance and accelerate support for vulnerable communities. New approaches to streamline application processes, expand funding access, and introduce operational changes are emerging across major funds. Researchers Clara Gallagher and Sejal Patel highlight upcoming developments and opportunities that could strengthen the delivery of adaptation finance, especially for the poorest and most climate-vulnerable populations.
Several leading multilateral climate funds are introducing structural reforms aimed at simplifying country access to funding. Efforts are particularly focused on improving readiness programmes, expanding direct access opportunities, and strengthening mechanisms that support locally led adaptation projects. Although these initiatives show promise, progress has been gradual and uneven. Greater impact could be achieved by embedding principles such as equity and subsidiarity into policies and by addressing the unique needs of Least Developed Countries, Small Island Developing States, and Indigenous Peoples and Local Communities across strategy, governance, and implementation.
However, reforming complex funding systems requires careful planning and continuous learning. Major funds that play a central role in adaptation and resilience finance—including the Green Climate Fund, Adaptation Fund, Global Environment Facility, Climate Investment Funds, and the Fund for Responding to Loss and Damage—are expected to experience important milestones and opportunities for change over the next 18 to 24 months.
A key area of attention is readiness support, which helps countries build systems and capacities to access climate finance effectively. Both the Green Climate Fund and the Adaptation Fund provide grants for this purpose. The Green Climate Fund revamped its readiness programme in 2024, allowing new channels for direct access entities and introducing a four-year programming cycle instead of annual grants. By 2026, countries are expected to submit their four-year readiness programme plans, although none have yet been approved, likely due to the complexity of coordinating long-term climate planning across sectors and stakeholders. Observers will be watching closely to see how countries develop integrated climate strategies and how the fund supports adaptive management in the process.
At the same time, the Adaptation Fund is working on an enhanced readiness strategy following an evaluation of its existing programme. The new strategy, expected to be finalized in 2026, aims to create a more results-oriented approach that better supports countries with limited capacity to develop funding proposals and gain accreditation.
Another significant development involves expanding pathways to access climate finance. In 2026, the Green Climate Fund plans to roll out an updated accreditation framework designed to speed up the process and support more partners, with a target of adding dozens of new accredited entities each year. The fund has also introduced a framework for locally led climate action, encouraging applicants to design and implement climate solutions that are defined by local communities. This could play an important role in strengthening grassroots climate initiatives.
The Fund for Responding to Loss and Damage, the newest climate fund under the UN climate system, has opened its first funding window through the Barbados implementing modalities, with countries expected to prepare and submit applications by mid-year. Meanwhile, applicants to the Adaptation Fund will continue developing proposals under its locally led adaptation windows, potentially moving some projects into implementation. As one of the first climate funds to strongly emphasize locally led adaptation, its progress will provide valuable lessons for other funds.
In parallel, the Climate Investment Funds have introduced the ARISE programme, which will help countries create evidence-based investment plans that integrate climate risk into national economic priorities while promoting locally driven solutions. This programme offers another pathway for countries to access concessional climate finance through multilateral development banks.
Governance and operational changes are also taking place across the climate finance system. The major funds are continuing structured collaboration to improve coordination and complementarity, even as they move beyond earlier coordination frameworks. Cross-fund working groups are focusing on scaling climate projects, improving joint funding approaches, and producing shared reporting on results. The Green Climate Fund is also planning to establish a stronger regional presence in underserved regions, including Least Developed Countries and Small Island Developing States, with proposals for hosting these regional hubs expected to advance through 2026. Meanwhile, the Global Environment Facility is searching for a new chief executive officer as it transitions from one funding cycle to the next.
Learning and knowledge sharing will remain an important part of improving access to climate finance. Joint learning events will be organized for direct access entities and communities involved in locally led adaptation, offering practical insights into application processes, challenges, and ways to improve funding accessibility. The Adaptation Fund will also host a specialized workshop linked to the Community Based Adaptation conference in Manila, bringing together practitioners to strengthen proposal development and knowledge exchange.
Resource mobilization will be another major focus. The Adaptation Fund is planning to launch a new strategy in 2026 aimed at increasing funding and strengthening advocacy ahead of global climate negotiations. The Green Climate Fund will begin preparations later in the year for its third replenishment cycle covering 2028 to 2031, while the Fund for Responding to Loss and Damage is seeking to expand its financial base beyond its initial round of contributions.
Overall, the coming period is expected to be busy for multilateral climate funds as they pursue reforms, develop new strategies, and work to improve the effectiveness of climate finance delivery. These developments could play a crucial role in ensuring that funding reaches the countries and communities most affected by climate change while strengthening global efforts to support adaptation and resilience.
