Climate mitigation philanthropy growth and gaps: What can nonprofits expect in 2025? 

Global philanthropic funding from foundations and individuals to mitigate climate change surged by 20% in 2023, ​a historic high. Y​​​et, according to ClimateWorks Foundation’s 2024 Funding Trends Report, funding remains far short of what’s needed, especially in the Global South, where communities least responsible for harmful emissions are experiencing historic sea level rise, deforestation, and extreme weather.  

Based on my more than two decades as a climate scientist and practitioner in the field, here I’ll highlight some of the report’s key findings about climate mitigation philanthropy as well as context for nonprofit leaders on recalibrating funding approaches amid limited resources. This includes prioritizing collaboration, intersectionality, and flexibility, with a renewed focus on the Global South to accelerate the implementation of climate solutions. 

Climate mitigation philanthropy from foundations has tripled since 2019 but geographic disparities remain 

The report’s five-year analysis from 2019 to 2023 reveals a story of funding growth, shifting sectoral priority areas, and persistent funding gaps. Foundation funding to mitigate climate change nearly tripled, reaching an estimated $4.8 billion in 2023. Funding for climate adaptation and resilience initiatives grew to $600 million in 2023, reflecting increased awareness of the need to help communities already experiencing devastating climate impacts. 

Despite global ambitions to bolster climate efforts in the Global South, 60% of single-region foundation funding for climate mitigation was directed to the United States and Europe, deepening existing inequalities. Africa, Asia, Oceania, and Latin America received only 20% of that funding, while low- to middle-income countries captured just 14%. Without addressing these disparities, the global climate movement risks amplifying the human cost of climate change.

Expect shifts toward collaboration and holistic solutions in 2025 

Climate mitigation philanthropy is expected to emphasize broader collaboration, diversify investments across emerging markets, and integrate holistic solutions this year and beyond. Nonprofit leaders can position their climate strategies for success by aligning with funding priorities and leveraging best practices. 

Collaborate to maximize impact 

• Working with networks can enhance visibility and foster a unified approach to climate solutions. Initiatives like the $223 million Global Methane Hub illustrate how collective funding models can drive immediate, scalable solutions.  

• ​​Partnering with other climate organizations can increase the effectiveness of funding by pooling resources, expertise, and influence to tackle complex challenges. This trend is likely to accelerate as ​​collaboration increases collective benefits to all communities.​ One example is the diversity of focus areas among foundations engaged in the Adaptation and Resilience Collaborative for Funders (ARC). Over 60 foundations with different regional, thematic, and sectoral priorities—from development in Africa to children’s health in India—joined forces to advance philanthropy’s role in addressing climate impacts for a more resilient global community.​​ 

Focus on emerging markets 

• As clean energy gains momentum in regions with high carbon emissions, an increased focus on emerging markets is crucial to avoid locking in carbon-intensive infrastructure and to foster equitable development. ​​​​Grantmakers can create new funding opportunities for clean energy and sustainable infrastructure in Africa, Asia, and Latin America.  

• By highlighting scalable, region-specific solutions, nonprofits can better position themselves to receive funding aimed at transformative change. For instance, the Drive Electric Campaign’s Leapfrogging Partnership is channeling $100 million to accelerate electric vehicle adoption in emerging markets. 

Seek flexible, long-term funding 

• Supporting organizations with multiyear funding will build capacity and resilience, particularly in underfunded regions. Long-term support helps these organizations develop innovative strategies, maintain operational stability, and adapt to evolving climate challenges. 

• By demonstrating a commitment to measurable outcomes and long-term impact, nonprofits can attract these long-term partnerships. 

Embrace holistic, intersectional approaches 

• Climate mitigation philanthropy will increasingly intersect with health, equity, and economic development. Addressing these interconnected issues amplifies the impact of climate interventions by promoting justice, well-being, and sustainable growth. 

• Connecting climate action to other societal priorities strengthens the case for investment and widens the base of potential supporters. Integrated efforts like the International Land and Forest Tenure Facility, which secured land rights for Indigenous Peoples and local communities in 18 million hectares, demonstrate how holistic solutions yield social benefits. 

Investment in climate mitigation supports a thriving future 

Climate mitigation philanthropy has grown significantly, but the pace and scale of investment simply is too limited. Recent climate disasters show the imminent need for bold, strategic action. This moment offers a critical opportunity for nations, cities, states, regions, investors, and businesses to step forward and demonstrate ambition and leadership, and philanthropy and the nonprofit sector have a vital role to play. Every investment in climate solutions with a holistic outlook can save lives, limit damages, and help build a more stable and equitable world for future generations. 

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