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Wealthy countries aren’t doing nearly enough to fund climate mitigation in the developing world – and a big part of the problem is how the conversation is being framed.
“Helping fund mitigation in emerging and developing economies (EMDEs) isn’t just the right thing to do for the climate, sustainable development, and equity — it’s in wealthy countries’ own strategic interest,” says Catherine Leining, Motu Policy Fellow and member of the RESET Network.
A new Motu Working Paper, released today, presents insights from research and expert dialogue on how to build public support in advanced economies for funding climate mitigation abroad — by shifting narratives. The project was conducted by Motu Research, the European University Institute, and the University of Zürich with funding from the Environmental Defense Fund and the RESET Network. It considered both conventional climate finance and carbon market approaches under the Paris Agreement.
“Our work suggests that in advanced economies, appealing to altruism alone is unlikely to overcome public resistance to sending climate funding to other countries,” says Catherine Leining, a co-author of the paper. “The public needs to be convinced why funding ambitious climate action both at home and abroad is a good use of taxpayer money.”
The paper identifies a cluster of concrete national-interest arguments that could help build public support in advanced economies for funding international climate cooperation:
“As shown in the current energy crisis, renewable energy investment underpins climate security, energy security, and geopolitical security. Fossil-fuel price shocks are being felt most severely by EMDEs highly dependent on fossil fuels. These countries often lack the funds to invest in energy transition and support vulnerable communities and businesses. Advanced economies funding climate mitigation in EMDEs achieve further vital outcomes beyond meeting their own country’s climate commitments,” says Catherine Leining.
Boosting mitigation funding from advanced economies to the developing world is critical to global progress. Countries in the Global South hold 75% of the world's lowest-cost opportunities to cut greenhouse gas emissions by 2030 in line with 1.5°C pathways. However, Global South countries (excluding China) receive less than 20% of global clean energy investment. Under current policies, global temperatures are on track for 2.8°C of warming by 2100.
“The simple reality is if advanced economies focus only on achieving their own Paris Agreement targets, the global temperature goal of the Paris Agreement will remain out of reach,” says Catherine Leining.
The project’s findings shed light on current narratives and opportunities to shift those narratives in favour of climate cooperation between countries. A critical step for shifting narratives is building public confidence in mechanisms for funding mitigation abroad.
“Narratives built on incomplete or outdated information can be improved. And narratives that reveal real policy deficiencies can create pressure for transformational change. The stories we tell about international climate cooperation today will shape what’s politically possible for decades to come,” says Catherine Leining.
In 2025, Motu Economic and Public Policy Research, European University Institute, and University of Zürich conducted a literature review and convened a dialogue to shape the agenda for longer-term research on how to mobilise greater funding flows for climate mitigation from advanced economies to EMDEs. The dialogue brought together experts from 14 advanced economies to explore public narratives in advanced economies influencing support for (or opposition to) funding climate mitigation abroad. The outcomes from the process are reflected in the Motu Working Paper released today.
The paper, “Shifting narratives on funding mitigation abroad: Insights from an international dialogue,” is authored by Catherine Leining, Sasha Maher, and Lucy Peake (Motu Research); Alessia Casamassima, Albert Ferrari, Lea Heinrich, and Simone Borghesi (European University Institute); and Axel Michaelowa (University of Zürich).
In the next phase of the PerClimMit project (Public Perceptions of Funding Climate Mitigation across Borders), the team aims to conduct a multi-country survey, semi-structured interviews, and social experiments to test narratives and information that could increase public support in advanced economies for funding mitigation abroad. The team has developed a detailed proposal and is seeking funding.
Motu Research is an independent, public good-focused economics and policy research institute. We help decision-makers in Aotearoa New Zealand grapple with complex social, environmental and economic issues. www.motu.org.nz
The Florence School of Regulation (FSR) is a research centre of the European University Institute (EUI) dedicated to independent research, training, and policy dialogue in the sectors Energy, Climate, Transport, and Water & Waste. Founded in 2004 by European energy regulators, the FSR conducts applied research to develop economically, legally, and socially sound regulatory frameworks. The FSR Climate Area specialises in multidisciplinary research on the economic and social aspects of the environmental transition, focusing on market-based climate policy. www.fsr.eui.eu
The International Climate Policy Group at the Institute for Political Science of the University of Zürich has specialised in the analysis of international carbon markets. www.ipz.uzh.ch
The RESET Network is an international non-profit research and engagement network coordinated by the Environmental Defense Fund (EDF). It brings together researchers and decision-makers across the Global South to accelerate just energy transitions tailored to local circumstances.
The RESET Network is open to researchers, economists, and policy professionals working on energy transition and climate change across the Global South, as well as partner organisations working in related fields. To learn more, join the mailing list, or connect with network members and their work, visit www.reset-network.org or follow the network on LinkedIn.
The Environmental Defense Fund (EDF) is a leading global non-profit environmental organisation founded in 1967. With over 3.5 million members, EDF focuses on climate change, ecosystem restoration, oceans, and human health, using science-based, economic, and legal approaches. www.edf.org
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