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Belize has embarked on its two-year term leading the Alliance of Small Island States (AOSIS). The Caribbean nation’s vision for the Alliance, which turns 30 this year, focuses on ambitious action on climate change, sustainable development and oceans.

This week, climate finance – funds for developing countries to enable low-emission and climate-resilient development – takes center stage as political leaders discuss how to ramp up climate ambition at COP24 in Katowice, Poland. What role can investments and finance for mitigation and adaptation play, in particular for the most vulnerable countries?

By now it is clear that climate change is as much an economic problem as it is an environmental one. Rising temperatures slow economic growth and devastating climate-related impacts leave large negative imprints on economic development of developing countries. Most financial instruments that have been proposed in the context of loss and damage do not solve the problems developing countries face.

At its latest meeting 2-5 November in Livingstone, Zambia the Green Climate Fund Board strengthened the Fund’s accreditation framework by agreeing on a policy to review every five years to what extent the GCF’s implementing partners’ overall portfolio of activities - beyond those funded by the GCF - have evolved in the direction of the Fund’s goal to promote a paradigm shift. Partners that continue to heavily invest into coal and other fossil fuels are now at risk of loosing their accreditation after their initial accreditation period ends.