Inside COP30: Key Updates on Resilience Funding and Carbon Trading

As COP30 opened in Belém, Brazil—positioned at the edge of the Amazon rainforest—delegates gathered against a backdrop of severe weather worldwide. Typhoons in Southeast Asia and ongoing recovery in Jamaica and Brazil underscored the summit’s central concern: how to build global resilience as environmentally driven extremes become more disruptive each year.

Drone view showing Belém’s urban area beside the green expanse of Utinga Park. AI generated picture.

Adaptation Takes Priority as Costs Rise

This year’s negotiations began with an unusually strong emphasis on adaptation. After years of mitigation dominating discussions, governments used the opening days to focus on the growing financial burden facing developing nations—estimated to reach $310 billion per year by 2035.

In support of this shift, ten major development banks reiterated their role in protecting vulnerable economies, stating: ‘Lives, well-being and jobs cannot be sustained where homes, schools, farms and businesses are under threat from flooding, drought, or other climate extremes.’ Together, these institutions channelled more than $26 billion into adaptation efforts last year.

Momentum continued with the introduction of new financial instruments. A UN-backed facility confirmed plans for a $200 million impact bond, while Germany and Spain committed $100 million to the Climate Investment Funds to accelerate resilience programmes.

At the negotiation level, countries also began formal work on the Global Goal on Adaptation (GGA), seeking agreement on indicators to monitor progress across critical public systems—from health and water access to infrastructure. As UN climate chief Simon Stiell noted: ‘We now need to agree on the indicators that will help speed up implementation, to unleash its potential.’

A major milestone came early in the week with the Fund for Responding to Loss and Damage issuing its first call for funding requests under the Barbados Implementation Modalities—an important step for regions already facing escalating environmental pressure.

Negotiations Continue Amid Persistent Divides

Even as delegates managed to avoid a procedural dispute at the outset, key points of tension soon resurfaced. Questions around developed countries’ financial obligations, trade-related measures, and data transparency remained unresolved, prompting extended closed-door discussions throughout the week. Day 4 brought renewed appeals for guidance from the COP Presidency, particularly on the Just Transition Work Programme and Article 2.1(c), where negotiators made incremental progress on potential safeguards.

Indonesia Emerges as a Major Actor in Belém

One of the most assertive presences at COP30 came from Indonesia. The country announced a goal of securing US$1 billion in carbon credit agreements during the summit, drawing on a pipeline of 90 million tonnes of credits spanning forestry, energy, and industrial activities.

To reinforce this push, Indonesia unveiled several new partnerships:

• A Mutual Recognition Agreement with Verra, enabling up to 50 million tonnes of credits to reach global markets
• A memorandum of understanding with the Integrity Council for the Voluntary Carbon Market (ICVCM)

Officials also spotlighted Indonesia’s long-term carbon potential, estimated at 13.4 billion tonnes of CO₂ by 2050, which could generate $2.8–$8.6 billion annually depending on future price dynamics.

Talks with Sweden suggested the country may secure another bilateral Article 6 agreement. As Indonesia’s Minister of Environment explained: ‘This collaborative plan is an important step in attracting Swedish business networks to participate in the carbon economic system we are building.’

A Wave of Global Carbon Market Announcements

Indonesia’s strategy reflected a broader trend throughout COP30. Several nations used the summit to advance new carbon market frameworks or update existing ones, highlighting how environmental policy is now tightly linked to economic strategy:

• Brazil launched an Open Coalition on Compliance Carbon Markets alongside 11 partner countries
• Iraq formally introduced its first national carbon market
• Kenya, Singapore and the UK announced a joint initiative to build corporate demand for high-integrity credits
• Japan laid out plans to significantly scale up JCM credit supply ahead of upcoming compliance needs under the GX-ETS

A common message threaded through these announcements: credibility is non-negotiable. High-integrity credits—backed by robust monitoring and community benefit—are emerging as the new baseline for participation in global carbon markets.

Corporate Action: Nestlé Expands Nature-Based Efforts in Brazil

Private-sector involvement also gained visibility. Nestlé introduced two major restoration programmes in Brazil, together covering 8,000 hectares and involving the planting of 11 million trees. In partnership with re.green and Barry Callebaut, the projects are expected to generate 1.4 million tonnes of CO₂-equivalent credits, while strengthening long-term cocoa and coffee supply chains.

Workers planting tree seedlings during a forest restoration effort in Brazil. AI generated picture.

These initiatives form part of Nestlé’s broader natural roadmap, which includes planting 200 million trees by 2030 and working toward net-zero emissions by 2050. As outlined in its 2024 Non-Financial Statement, the company continues to prioritise carbon removals created within its sourcing regions rather than relying on external offsetting.

GCF Scales Up Nature and Climate Finance Infrastructure

Beyond individual country and corporate actions, the Green Climate Fund (GCF) announced support for 14 new national and regional platforms to coordinate environmental and nature investments. With $19.3 billion in available resources—and $78.7 billion when co-financing is included—the GCF is positioning these platforms as essential structures for integrated planning.

Kazakhstan’s Vice-Minister Mansur Oshurbayev captured the shift succinctly: ‘We are moving from fragmented initiatives to a systemic approach.’

A Broader Shift Toward Implementation

Across its many strands—from adaptation finance to carbon market cooperation—COP30 signalled a clear movement toward implementation. Governments and companies alike are building the architecture required for long-term environmental and economic resilience. Whether through Article 6 partnerships, national carbon schemes, or large-scale restoration efforts, environmental action is increasingly shaping economic development pathways around the world.