As global climate funding declines, Asian philanthropists may bridge the gap in climate aid.
As the world grapples with the urgent challenges posed by climate change, the role of philanthropy has become increasingly pivotal. Recent data reveals a stark reality: less than 2% of global philanthropic contributions are directed towards climate mitigation, with only a mere 12% of that amount benefiting Asia. This is troubling considering that Asia is experiencing the effects of climate change at an accelerated rate, with the region warming at twice the global average and over 3.7 billion people impacted by climate-related disasters since 2000.
The situation has worsened due to decreasing international funding. In 2017, the U.S. government, under President Trump, shuttered the U.S. Agency for International Development, cutting over $40 billion in climate-related development projects globally. Similarly, European nations have been constricting their climate aid budgets. For instance, France slashed its development aid budget by 40%, while Germany announced cuts from €6 billion to €4.58 billion in 2025.
As the West retreats from climate funding, observers are turning their attention to Asia. The expectation that climate leadership would primarily arise from Western nations has been challenged. Jamie Choi, CEO of the Singapore-based Tara Climate Foundation, remarked, “We have been looking to places like Europe and the U.S. to take leadership, but those days are long gone.”
Asian philanthropists are increasingly considering climate-related initiatives as the need for action becomes more evident. Shaun Seow, who heads the Philanthropy Asia Alliance (PAA), notes the growing commitment among the next generation of Asian donors. “A lot of next-generation leaders are recreational divers; they look at the bleached corals and think it’s not right,” he said, emphasizing a more personal connection to climate issues.
An optimistic forecast is that Asia will see an estimated $5.8 trillion in philanthropic transfers by the end of the decade. This influx of capital is crucial for addressing environmental concerns. According to a report by the Center for Impact jpmorgan-chase-s-50-billion-private-credit-exposure-risks-and-rewards-for-investors/">Investing and Practices (CIIP), nearly half of the 165 Asian donors surveyed were already investing in climate adaptation and resilience, with another 28% indicating readiness to explore such investments.
Nonetheless, Seow cautions that climate causes often remain “woefully underfunded.” Presently, Asia requires over $200 billion annually to finance its climate adaptation and resilience efforts, yet inflows hover around only $19 billion. By 2030, the region is expected to account for 75% of the global climate financing gap, while firms in Asia are projected to incur $336 billion in annual climate mitigation costs.
Traditionally, Asian philanthropic endeavors have focused more on immediate social issues such as education and health, partly because these areas garner more emotional responses. “It’s obvious when there’s a child suffering or a disease outbreak,” Seow explained. “But the impacts of climate change are more long-ranging.” This natural inclination to prioritize immediate humanitarian needs complicates climate advocacy.
The hesitance among some donors can also be attributed to perceived complexities of climate change. “A lot of people think climate change is a very complex and technical issue, and see it as an accounting problem that needs to be challenged,” Choi noted. The challenge lies in demystifying climate-related issues to encourage broader participation from potential funders.
In light of the severe funding gap, Asian philanthropic organizations are exploring new financing frameworks such as blended finance, which combines public resources with private capital. “The funding gap is just so wide,” Seow stated. “We’re failing on our 1.5-degree global warming KPIs, so we really need private capital to come in.”
The Center for Asian Philanthropy and Society suggests that philanthropic endeavors can act as risk capital, bridging the gap for innovative solutions which governments may be reluctant to fund and private investors find unappealing.
Seow shared insights regarding the patience of Asian founders in the philanthropic space. For instance, the Tahija Foundation in Indonesia committed over $17 million across ten years for testing Wolbachia bacteria to combat dengue fever—a project that likely wouldn’t have seen funding without philanthropic support. “I don’t think anyone would have funded that if not for philanthropic capital,” he asserted.
The PAA, founded in 2023, aims to unify a network of Asian and global philanthropic organizations committed to environmental, health, and inclusive development projects in the region. This broad coalition includes entities such as the Bill & Melinda microsoft-implications-for-investors/">Gates Foundation and the Dalio Philanthropies, and seeks to coordinate over 300 initiatives in Asia.
Meanwhile, organizations like the Tara Climate Foundation are engaged in efforts such as the Just Energy Transition Community (JETC), launched in 2025. This alliance has pledged $2.6 million in initial catalytic funding for various projects in Southeast Asia, ensuring clean energy access for rural communities and enhancing resilience against rising temperatures.
Choi emphasized the duality of Asia's role in global emissions: “Asia is part of the problem, as we are emitting 50% of global emissions. Also, we already hold so many homegrown solutions, but we just need to get over ourselves and start funding them.” She insists that to craft meaningful change, philanthropic decisions should be informed by a nuanced understanding of local contexts, rather than being dictated from afar.
Despite the retreat of some Western organizations from funding, not all have pulled out. The Nature Conservancy, for example, remains active with initiatives like its Global Ocean Innovation Challenge in Indonesia, demonstrating a continued commitment to local environmental issues. Jennifer Morris, CEO of the Nature Conservancy, stated, “The last thing we want to do is crowd out local organizations.”
With the shift in the landscape of climate philanthropy, Shaun Seow reinstates a vital conversation: “The conversation needs to happen between Asia, South America, and Africa. We owe it to ourselves: Global South for Global South.”
As Asia stands at a pivotal juncture in climate philanthropy, the anticipated financial transactions in the coming years could provide the resources necessary for innovative climate solutions. The potential for Asian philanthropists to step into leadership roles cannot be understated, especially in light of dwindling Western aid.
Increased awareness among philanthropists about the urgent need for climate action is crucial for shifting funding trends. With innovative financing approaches and collaborations becoming more common, Asian funders may finally transcend traditional philanthropic confines and make impactful strides on climate issues. The success of these actions will depend on their ability to mobilize capital, engage communities, and execute strategies that not only address immediate needs but cultivate resilience for the future.