COP29 in Baku concluded leaving Indigenous Peoples disappointed. The Indigenous Peoples Caucus called out the outcome document of removing the human rights and rights of Indigenous Peoples and prioritizing false solutions. Similar sentiments were shared by civil societies, least developed countries, and developing countries like Bolivia, India and Nigeria deeply criticized the final outcome saying the new climate finance goal lacked ambition and not corresponding to the principle of Common but Differentiated Responsibilities and Respective Capabilities (CBDR- RC) as stated in the Paris Agreement. The key agenda that left many stakeholders dissatisfied was ‘climate finance’. As expected, climate finance took a center stage at COP29 in Baku, which adopted a new climate finance goal of 300 billion USD by 2030 with developed countries taking lead in its mobilization. Whereas the developing countries have pushed for the quantum of new climate finance goal at USD 1.3 trillion annually exclusively to the developing countries to address adaptation, mitigation and loss and damage.
The inputs by the Least Developed Countries (LDCs), Small Island Developing States (SIDS) and Indigenous Peoples, and local communities focusing on qualitative element of the NCQG such as setting allocation targets for LDCs, SIDS and IPLs to enhance climate finance access are left unaddressed. There are a lot of work needs to be done in terms of making the new climate finance goals a reality to Indigenous Peoples. The work of the Local Communities and Indigenous Peoples Platform (LCIPP) of the UNFCCC which works for collaboration between Indigenous Peoples and State parties in climate negotiations made some gains. It has adopted the Baku Workplan of the LCIPP which lays out a roadmap for action (2025 -2027) in three key areas: Promoting knowledge exchange, building capacity for engagement and integrating diverse knowledge systems into climate strategies.
Although the issues of Indigenous Peoples were overlooked in the official negotiation processes, the alternative spaces outside of policy making remained crucial for amplifying the voices of Indigenous Peoples. One such space was The Indigenous Peoples Pavilion, the advocacy space resourced and managed by Indigenous peoples played central role in strengthening Indigenous Peoples participation at COP29.
IFIP hosted two side events at the Indigenous Peoples Pavilion 1. Indigenous Led Fund Redefining Climate Financing and 2. Direct Funding to Indigenous Women and joined events organized by partners FIMI and WINGS calling for shifting the unequal power dynamic in philanthropic fundings and climate financing.  IFIP Executive Director, Lourdes Inga underscored the urgent need for redistribution of resources by philanthropies towards Indigenous women citing the findings of the report Global Analysis of Funding to Indigenous Women. According to the report in between 2016- 2020, USD 28.5 billion grants were disbursed supporting women and girls, of which only 1.4% of it (392 million) was given to organizations benefiting Indigenous women.
The climate finances mechanisms set under UNFCCC namely The Green Climate Fund, performs no any differently from traditional philanthropic giving practices, in fact they may further exacerbates the access to funding because the finance mechanism is mired with more complex bureaucracy and technicalities. Most climate finance continues to flow through intermediaries and are delivered as loans with a focus on large scale projects over micro and small scare projects, large scale projects have more impact on environment and human rights and less participation of Indigenous Peoples. The glaring climate finance delivery gap exists in the funding pool established collaboratively by philanthropic foundations and developed countries too. For example, the finance disbursement of historic $ 1.7 billion Global Forest Finance Pledge still remains unequal and inadequate to the Indigenous Peoples. As of 2024, only 15.6 % of total disbursement of nearly $ 1.34 billion i.e $ 202.8 million has reached to Indigenous Peoples and Local Communities directly.
This evidence reflects disparity in giving grants and structural barriers in the form of exclusion in decision making, complex application procedures and administrative and financial put by donors which does not reflect the values of Indigenous Peoples Organizations governance systems. These are also some of the key issues echoed by Indigenous Peoples organizations throughout COP29. The continuous advocacy of the Indigenous Peoples has contributed in increasing the direct funding to Indigenous Peoples Organizations and mobilization of Indigenous Peoples Led Funds (IPLFs). In 2023, 10.6 % of total Forest Finance Pledge funding was channeled directly to Indigenous Peoples and local communities compared to 2.9 % in 2022 and 2.1 % in 2021.However, it still falls short of the needs of the Indigenous Peoples who are directly responsible for stewardship of local biodiversity. Therefore, it is vital for Indigenous Peoples to continue to engage in spaces like COPs to make sure climate finance flows respects and responds to the rights of the Indigenous Peoples.
2025 is going to be crucial year for rights of the Indigenous peoples as we move towards implementation of new climate finance goals, accelerating second commitment of Forest Finance Pledge, implementing outcomes of Biodiversity COP16 and Climate COP30 at heart of Amazon in Belem, Brazil. As a network organization of philanthropy and Indigenous Led Funds, IFIP is prioritizing COP30 to build strategic collaboration and advocacy with our partners and members.
In lead up to the COP30, we plan to hold continuous collaborative discussions with IFIP members and Indigenous Peoples Organizations, produce research, support strengthening Indigenous Peoples Pavilion and participation of more Indigenous Peoples in COP30. We call on our members and partners to work together for advocacy on direct, adequate and equitable climate financing and strengthen the role of Indigenous Peoples Led Funds in channeling resources.
As we work towards COP30, our key recommendation to the climate finance community both within and outside of the UNFCCC mechanisms are below. These recommendations are based on our series of conversation with our members and representatives of the Indigenous Peoples Organizations in lead up to COP29.
- Reforming Climate Finance Access Mechanism within the UNFCCC
The access modalities of the UNFCCC climate finance mechanisms need to be reformed to recognize the distinct value, traditional knowledge systems and world view of the Indigenous Peoples. - Designing Equitable Access to Funding both within and outside of UNFCCC Mechanisms.
All existing climate finance delivery mechanisms including of UNFCCC, UN entities, bi- lateral, multi-lateral and philanthropy should ensure meaningful participation  and representation of Indigenous Peoples in the design of climate funding, and  support Indigenous Peoples organizations and Indigenous Led Funds. - The climate finance design, delivery and implementation should adhere to ‘The Principles and Guidelines for Direct Access Funding for Indigenous Peoples’ Climate Action, Biodiversity Conservation and Fighting Desertification for A Sustainable Planet’.
This document adopted by the Indigenous Peoples Caucus at COP27 sets out 10 guiding principles for designing a new Indigenous Peoples led funding mechanism for direct management and governance of funds pledged for Indigenous Peoples and transparency for self-determined development of Indigenous Peoples. - Moving beyond symbolic recognition to taking action
Indigenous Peoples are often praised and sympathized with for their traditional knowledge system and sustainable practices in climate action while their climate finance needs remain largely unmet. The climate funding practice needs to move from the symbolic recognition to one directly investing in Indigenous Knowledge systems. - Indigenous Women and Climate Finance
Indigenous Women´s leadership in preserving ecosystems, managing natural resources, and implementing climate adaptation strategies is indispensable. More direct investment of funds should be channeled towards Indigenous women to strengthen and scale up the Indigenous Knowledge of Indigenous women which are fundamental in reshaping the regenerative and agro-ecological food production systems, biodiversity conservation and driving locally led climate adaptations.