Loss and Damage at COP30: Indigenous Leaders Challenge Top-Down Finance Models

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by Jennifer Xin-Tsu Lin Levine (united nations)
Wednesday, September 17, 2025
Inter Press Service

UNITED NATIONS, September 17 (IPS) - As climate-induced disasters continue to devastate the Global South, nations are steadily mounting pressure at the United Nations for wealthier countries to deliver on long-promised climate reparations through the Loss and Damage Fund. For Indigenous peoples, whose territories are often the most ecologically intact yet most damaged by climate change, these negotiations define survival, sovereignty and recognition as rights-holders in global climate governance.

After the fund’s operationalization at the 29th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP29) in Baku last fall, developing countries say that the pledges so far—approximately USD 741 million—fall drastically short of the trillions needed to recover from climate devastation.

This low number is acutely felt in Indigenous communities, whose local economies rely on thriving ecosystems.

“A lot of rich biodiversity, carbon sinks and the most preserved parts of the world are within indigenous territories,” said Paul Belisario, Global Coordinator for the Secretariat of the International Indigenous Peoples Movement for Self-Determination and Liberation (IPMSDL), in an interview with IPS. “Without recognizing Indigenous people’s right to take care of it, to govern it and to live in it so that their traditional knowledge will flourish, we cannot fully address the climate crisis.”

UN Secretary-General António Guterres echoed this sentiment in Baku, saying, “The creation of the Loss and Damage Fund is a victory for developing countries, for multilateralism and for justice. But its initial capitalization of USD 700 million doesn’t come close to righting the wrong inflicted on the vulnerable.”

These “wrongs,” Indigenous leaders argue, must include the exclusion of traditional and tribal knowledge in decision-making. In light of pushback to make climate action a legal responsibility rather than a political agreement, many are hopeful that COP30 will yield a more successful negotiation for adequate compensation.

The call for action is led by coalition blocs including the Alliance of Small Island States (AOSIS) and G77, an alliance of developing countries with China as its primary political and financial supporter. Both alliances represent the countries most vulnerable to climate-related natural disasters. G77 was particularly vocal during COP29, where their rejection of the deal was backed by a number of climate and civil society organizations who criticized the negotiating text for giving developed countries too much leeway to shirk their climate finance obligations.

For Indigenous groups, this criticism stems from concerns that funding will not successfully reach their communities due to bureaucracy or geographical and political isolation.

Janene Yazzie, director of policy and advocacy at the NDN Collective, spoke about the importance of Indigenous involvement in funding distributions, saying, “What we’re advocating for is to ensure that these mechanisms… are accessible to Indigenous Peoples, uphold the rights of Indigenous Peoples, and can be utilized towards solutions and responses that are designed and prioritized by Indigenous Peoples.”

Last year, countries eventually settled on mobilizing USD 300 billion annually by 2035 to developing countries for climate finance—far below the USD 1 trillion experts say is the minimum for effective mitigation and adaptation. The financial commitment is voluntary, meaning that countries can withdraw without consequence and no protections exist to ensure the money is distributed with regard for Indigenous governance systems.

The Forest Stewardship Council (FSC) Indigenous Foundation noted that groups without formal land titles could be excluded entirely, despite their role in stewarding biodiverse landscapes.

However, a recent International Court of Justice (ICJ) report has created new legal pathways. The court placed stringent obligations on states to prevent significant climate harm and tackle climate change, stating that failure to do so triggers legal responsibility. Scientific evidence can link emissions to specific countries, allowing those affected by climate change to seek legal action, which could include getting money back, restoring land, improving infrastructure, or receiving compensation for financial losses.

This legal opinion opens new pathways for seeking restitution—not only in money but also in land recovery, infrastructure for adaptation, and guarantees of political participation.

This legal shift comes at a crucial time. In April 2025, thousands of Indigenous Brazilians marched in the capital ahead of COP30 in Belém, demanding land rights and decision-making influence. Meanwhile, the National Organization of the Indigenous Peoples of the Colombian Amazon (OPIAC) also issued a statement about the summit for Deforestation of the Amazon. They outline an action plan to end deforestation, strengthen land rights and phase out oil and gas exploration.

After indigenous groups were denied a co-presidency for COP30, Conference President André Corrêa do Lago pledged to establish a “Circle of Indigenous Leadership” within the conference. Many leaders found the arrangement insufficient—the FSC Indigenous Foundation called instead for “co-governance models where Indigenous Peoples are not just consulted but are leading and shaping climate action.”

Other groups were more explicitly critical. The Indigenous Climate Action co-authored a statement at the end of COP29 saying, “There is nothing to celebrate here today… While we urgently need direct and equitable access to climate finance for adaptation, mitigation and loss and damage across all seven socio-cultural regions… we reject the financial colonization that comes from loans and any other financial mechanisms that perpetuate indebtedness of nations that have contributed the least to climate change yet bear the brunt of its tragedies.”

Belisario frames the funding question as a matter of justice rather than charity.

“This funding is not just corporate social responsibility or compensation,” he told IPS. “This is historical justice.”

However, without Indigenous influence in the distribution of money from the Loss and Damage Fund, it remains unclear how effective this aid will be in combating climate change based on Indigenous knowledge and science. Many activists advocate for more localized approaches to climate action.

Belisario acknowledges the limitations of international negotiations.

“It’s been a running joke that we will negotiate until COP100, and we might not have that long. What we would really like to get out of COP30 is to meet many communities to discuss the common problems and make them realize that this COP is just a part of how we would like to solve our climate crisis,” he said. “We really believe that more radical ways to enact accountability and responsibility will start with movements in people’s own countries, in their own localities.”

As the FSC Indigenous Foundation concluded, “Indigenous Peoples must lead the design, management, and oversight of financial mechanisms that affect their lands, lives, and futures. Climate justice will only be possible when Indigenous Peoples are recognized as rights-holders and partners in decision-making.”

IPS UN Bureau Report

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