CHAIR’S STATEMENT

EU’S DIALOGUE ON CLIMATE FINANCE FOR SIDS AND LDCS

29th June 2025

Excellencies, colleagues,
1. I would first like to the thank the European Union for their invitation to this dialogue on the
crucial issue of climate finance for small island developing States (SIDS) and least
developed countries (LDCs)
2. For SIDS, last year’s decision on the new collective quantified goal on climate finance
(NCQG) already outlines a roadmap for the provision of climate finance to our countries.
Albeit a weak one, we should be focused on implementation of the many promises.
3. There were many calls made to climate finance providers to enhance such funding to
developing countries, especially SIDS and LDCs.
4. So, the simple question is: will these calls be urgently answered?
5. We therefore ask the EU and its 27 Members States to commit to prioritize answering these
specific calls made especially for the benefit of all SIDS and LDCs
6. Namely, we need the EU and its Member States to take the lead, and ensure:
a. the substantial provision of public, grant-based resources including highly
concessional finance for our adaptation, and responses to loss and damage; and
b. the strengthening of efforts to enhance efficient and effective access to bilateral,
regional and multilateral climate finance

Excellencies, colleagues,
7. More detailed calls were also directly targeted to specific channels of climate finance. Some
of these actions included the following:
a. For bilateral providers: an urging was made to them to institute measures for
substantially increasing finance to all SIDS and LDCs.
i. In a time of shifting priorities for public international finance, AOSIS kindly
request that EU members stay the course and enhance bilateral climate
finance for SIDS and LDCs;

b. For international financial institutions, including the multilateral development
banks: a call was given to these institutions to drastically scale up highly
concessional finance, especially for all SIDS and LDCs, with a further urging to
‘increase grant financing’ to these countries:
i. On this issue, the EU and its Member States, must use their role as major
shareholders, and ensure the MDBs accept these invitations from the
UNFCCC regime, as well as ensure that the European Investment Bank as
the EU’s international development bank, takes the lead in prioritising all
SIDS and LDCs for such grant and highly concessional climate finance in line
with the NCQG decision

c. For the multilateral climate funds: a tripling of outflows commitment was made to
significantly increase public resources going to towards these funds as a means of
drastically scale-up their share of finance delivered towards achieving the NCQG.

i. AOSIS sees great importance in:
1. substantially replenishing the GEF’s Special Climate Change Fund
and its window SCCF-A for SIDS adaptation needs in tangent with the
GEF-9 replenishment discussion;
2. urgently scaling up the capitalisation of the Fund for Responding to
Loss and Damage, and adequately operationalising its minimum
allocation floor for SIDS and LDCs of at least 50%; and
3. Significantly contributing to the Adaptation Fund well beyond its
current resource mobilisation target.

SIDS cannot delay the enhancement of the provision of concessional climate finance
for our countries for another second.

Excellencies, colleagues,
9. It would also be remiss of me not to highlight another matter for your urgent attention.
10. The EU must show enhanced leadership in their ratcheting up of ambition and
implementation of decisive action on said ambition for mitigation in line with the 1.5°C
limitation goal to combat climate change.
11. Additionally, the EU should also use its political standing in geopolitics to push the laggards
to also increase the ambition and its implementation in line with this limitation goal.
Excellencies, colleagues,
12. In closing, while AOSIS reiterates its appreciation for the dialogue, our membership needs
to see action on these and other climate finance promises made for us.
13. Our group therefore awaits urgent action on these promises and looks forward to realisation
of fruitful partnerships with your countries. I thank you.