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Climate finance is a crucial topic for the LDCs, because they suffer most of the consequences of climate change despite contributing minimally to global emissions. The North-South divide is very apparent in climate negotiations, with developed nations (Global North) often neglecting their financial commitments to support adaptation and mitigation in the Global South, particularly in LDCs. 

 

Moreover, the concept of "loss and damage" has gained prominence, highlighting irreversible climate-related harms that adaptation cannot address, such as loss of land due to sea-level rise. LDCs advocate for increased funding and equitable mechanisms to address loss and damage, stressing that existing financial flows are inadequate. A fair approach to climate finance is essential to bridge the North-South divide, ensuring that vulnerable nations receive the support needed to protect their communities and ecosystems.

 

The global agenda setting on climate change is largely formed by the developed countries, which prompts some equity concerns in the LDCs. The Global North also has a different approach on how to tackle the climate change. It tends to invest in climate mitigation initiatives, instead of climate adaptation programs, the latter strongly supported and viewed by the LDCs as the most important approach. In the last few years, the financial initiatives of the Global North in favour of climate mitigation comprised 90% of the overall Northern investments. The African Development Bank, which collaborates with the LDCs, estimated that the African countries will need between 20-30 billion dollars for climate adaptation by 2030 and an additional 20 billion dollars by 2050, even if the increase of the global temperature is halted.