Civil society arrives in New York this week under mounting strain. As the 80th United Nations General Assembly (UNGA 80) and Climate Week NYC begin, NGOs face shrinking budgets and financial challenges ahead. Bilateral donors are scaling back, philanthropy is chasing tech-driven climate solutions, and humanitarian aid is being diverted to immediate crises. The result: fewer resources for rights-based, justice-oriented, and long-term development work.
Against this backdrop, gatherings such as UNGA 80 are being framed as turning points for climate finance, with the private sector at the center. Governments with limited fiscal space are calling on investment funds, corporations, and financial institutions to mobilize the billions needed to accelerate the net-zero transition and build resilience. For NGOs, this surge of private capital is both a potential lifeline and a profound challenge. Some of the challenges may include, but not restricted to, capital favoring profit over justice. Private investment may opt for projects that offer quick, scalable, and market-friendly returns. This often may leave out small grassroots initiatives that focus on equity, rights, or systemic change. Another challenge would be that investors typically work on five- to seven-year cycles, which conflicts with the long-term, generational nature of climate adaptation and social transformation projects. This can lead to projects that look good to investors but fail to address deeper issues. Another angle includes the fact that capital is more likely to flow to middle-income countries or urban areas where financial returns are higher, leaving the poorest and most climate-vulnerable regions behind.
What does Private Capital Entail
Public finance alone cannot close the climate funding gap, and new instruments, blended funds, impact investment vehicles, and impact bonds, are designed to channel private money into climate action. This opens up opportunities that would have been unthinkable a decade ago precisely NGOs. Access to new resources is one of them. Civil society organizations able to demonstrate measurable social or environmental returns may attract financing from investors seeking impact alongside profit. Another is, collaborating with corporations can provide NGOs with technology, data, and communications platforms that amplify their reach. Visibility and influence are other advantages. High-profile corporate pledges during Climate Week can shine a spotlight on NGOs working on the frontlines, connecting them with new allies and audiences. Innovation and scale may be leveraged also. Engagement with private capital can help NGOs scale successful pilots into broader programs, something traditional grants rarely support.
If approached strategically, private sector mobilization could help NGOs not only survive funding cuts but position themselves as indispensable actors in delivering climate solutions.
Preferences of the Private Capital
Yet the risks are equally significant. Private capital is not neutral; it comes with its own logic and timelines. For instance, in 2023, about two-thirds of foreign direct investment (FDI) in developing economies went to just 10 countries, with the 26 poorest countries receiving a mere 2% of the total. This demonstrates a strong preference for middle-income countries where returns are perceived as higher and more secure. This trend extends to climate finance as well. While the private sector contributed over half of the $1.3 trillion spent on global climate mitigation in 2022, it only accounted for a scant 8% of the funding for climate adaptation. This is largely because mitigation projects, such as renewable energy, offer clearer paths to profitability, while adaptation measures, like reinforcing infrastructure against extreme weather, are often seen as less lucrative public goods. This disparity underscores how private capital prioritizes projects with tangible financial returns over those that build long-term resilience for vulnerable communities.
A Strategic Test for Civil Society
The shift toward capital-driven climate action is already underway; NGOs cannot ignore it. The challenge at UNGA 80 is how to engage on their own terms. That means:
- Negotiating access. Insisting that a share of private climate finance is directed to community-based organizations and frontline actors.
- Demanding safeguards. Pushing for accountability frameworks so that investment-led solutions do not bypass rights or worsen inequalities.
- Leveraging credibility. Using their unique legitimacy, trust, and local knowledge as bargaining power in partnerships with investors and corporations.
- Framing values differently. Positioning themselves not only as advocates but also as co-creators of sustainable solutions that blend financial, social, and environmental returns.
Human Planet has Track Record for Climate Justice
UNGA 80 Climate Week underscores a new reality: the climate agenda and financial NGO requirements in other areas is shifting from aid to capital. For civil society, this is a moment of both danger and possibility. Private finance can provide resources, visibility, and scale that traditional donors no longer guarantee. But unless NGOs engage strategically, they risk being sidelined by the very model that is supposed to deliver climate action.
Human Planet (former KOIS Advisory) has positioned itself as a leading architect in climate finance by designing financial mechanisms that channel capital toward climate change mitigation and adaptation. Its portfolio demonstrates an ability to work across geographies and themes while tailoring solutions to the needs of local communities and ecosystems. A prime example is the Tribal Agriculture Development (TRIAD) Fund in India, a $10 million blended debt fund that supports 10,000 tribal farming households with solar irrigation, water management, and climate-resilient agriculture. By linking investment returns to climate resilience and gender equity outcomes, Human Planet structured a model that can both lift incomes threefold and protect vulnerable ecosystems.
In renewable energy, Human Planet designed innovative models to overcome prohibitive upfront costs. For instance, with the Rockefeller Foundation, it created a leasing mechanism to finance renewable energy assets in refugee camps, transforming high capital costs into manageable operational expenses. Similarly, the Solar for Health (S4H) initiative, developed with UNDP, built a blended PPP platform to solarize health facilities across Africa. By reducing diesel dependency, this not only cuts emissions but also secures reliable energy for hospitals and clinics, directly benefiting public health systems. Complementing this, Human Planet developed a de-risking facility with Shell Foundation and SEforALL in Kenya and India to crowd in private investors for health sector electrification by absorbing first-loss risks.
Human Planet also advances climate goals in waste and circularity, acting as a market builder. In France, it piloted an impact bond for waste management with SIA Habitat, linking investor returns to measurable improvements in recycling rates through AI-powered waste sorting. In Kenya, Human Planet created investment guides for waste and circularity, commissioned by ANDE, to map viable business models and capital needs, reducing entry barriers for investors and sparking ecosystem growth in this nascent sector.
Across these projects, Human Planet consistently applies a “nexus” approach; framing climate action within broader social objectives like livelihoods, health, and gender equity. This allows a wider range of funders to engage while ensuring climate projects generate tangible community benefits. From smallholder farmers in India to refugee communities in Africa and urban households in France, Human Planet’s climate finance portfolio demonstrates both innovation and systemic impact, reinforcing its role as a catalyst for the global climate transition.
The truth is simple: there can be no credible climate justice without civil society at the table. If private capital is to be mobilized for global good, NGOs must help shape its direction; ensuring that communities, not corporations, remain at the heart of the world’s response to the climate crisis. Should you like to discuss this topic further, please contact betiguel@mzninternational.com
