Fortune
In July, former U.S. President Trump made the decision to close the U.S. Agency for International Development (USAID), resulting in a loss of over $40 billion in funding for climate-related development initiatives globally. Jamie Choi, CEO of Singapore's Tara Climate Foundation, commented on this shift, stating, "For a long time, people have expected climate leadership to come from the West. We have been looking to places like Europe and the U.S. to take leadership, but those days are long gone."
Shaun Seow, leader of the Philanthropy Asia Alliance (PAA), speculates that the growing interest among the new generation of Asian philanthropists in addressing climate change can be attributed to personal experiences. He noted, "A lot of next-generation leaders are recreational divers; they look at the bleached corals and think it's not right." Seow shared these insights during the Philanthropy Asia Summit, where his organization is supported by Singapore state investor, Temasek.
While global philanthropic donations specific to climate change are minimal, accounting for less than 2% of total giving, only 12% of that amount is allocated to Asia. This is particularly concerning considering that Asia is disproportionately affected by climate change—warming at twice the global average—with approximately 3.7 billion people in the region impacted by climate-induced disasters since 2000.
International aid sources have dwindled in recent years. Following Trump's actions, European nations have also reduced their climate aid commitments significantly; for instance, France implemented a 40% reduction in its development aid budget as part of austerity measures, while Germany cut its international aid budget from €6 billion to €4.58 billion for 2025.
Amidst these reductions, Asian funders are emerging as critical players to address the widening gap in climate financing. It is projected that $5.8 trillion will change hands in Asia before the decade concludes.
According to Choi, the Tara Climate Foundation, which spun off as an independent entity in 2022 after initially beginning in 2014 under the European Climate Foundation, was previously a "lone wolf" in climate advocacy; however, the landscape is changing with other Asian philanthropic organizations joining the efforts. A 2026 report conducted by the Center for Impact Investing and Practices (CIIP) highlighted that nearly half of the 165 Asian funders surveyed are actively investing in climate adaptation and resilience, with an additional 28% expressing intentions to commence such investments.
Despite this growing interest, Seow cautions that climate initiatives remain "woefully underfunded." The CIIP estimates that Asia requires over $200 billion annually for effective climate adaptation and resilience strategies, whereas current funding is only about $19 billion. By 2030, Asia is likely to represent 75% of the global climate financing gap, with regional enterprises expected to incur $336 billion annually in climate mitigation expenses.
Historically, Asian philanthropy has favored sectors such as education and health. Seow remarked, "It's obvious when there's a child suffering or a disease outbreak, and it's very heart-tugging. But the impacts of climate change are more long-ranging." The human tendency to focus on immediate issues often leads to the neglect of prolonged challenges posed by climate change.
Choi adds that misunderstandings surrounding climate change complexity deter potential donors. "A lot of people think climate change is a very complex and technical issue... they see it as an accounting problem that needs to be challenged," she explained.
To address funding shortages, Asian philanthropic organizations are exploring innovative financing models, including blended finance, which combines public resources with private investment. Seow emphasized, "The funding gap is just so wide... we're failing on our 1.5-degree global warming KPIs, so we really need private capital to come in."
One strategy could involve philanthropic organizations utilizing their funds as risk capital to support transformative solutions that are overlooked by the market, neglected by governmental funding, and beyond the means of social innovators.
Seow further illustrates this point: "Solutions could require government action, but the government will not go for the unproven. They could need significant amounts of private capital, but their returns profile does not attract private investors."
He also expressed confidence regarding the patience of Asian founders, who are willing to commit to long-term projects. For instance, the Tahija Foundation in Indonesia has pledged over $17 million over a decade to investigate the use of Wolbachia bacteria for dengue fever control. "I don't think anyone would have funded that if not for philanthropic capital," he added.
In 2023, the establishment of the PAA created a coalition of Asian and global philanthropic entities, including the Bill & Melinda Gates Foundation, Dalio Philanthropies, and the Tanoto Foundation. Together, they support over 300 projects focused on climate, health, and inclusive development across Asia.
The Tara Climate Foundation is also a participant in the Just Energy Transition Community (JETC), an alliance launched in 2025 dedicated to fostering an inclusive energy transition in Asia. On May 18, 2026, JETC announced an initial commitment of $2.6 million in catalytic funding toward various projects in Southeast Asia, such as providing clean energy access for rural farmers and fishermen and cooling homes in a warming climate.
Choi pointed out that "Asia is part of the problem," contributing 50% of global emissions, yet it also possesses a wealth of homegrown solutions that require financial backing. "In the past, it was very common to see foundations make grant-making decisions out of London and New York. But to really make strategic change, you need to have a deep understanding of the local context in which you operate," she asserted.
However, not all Western organizations are pulling back on climate initiatives in the region. On May 20, the Nature Conservancy announced plans to fund pilot projects for its Global Ocean Innovation Challenge in Indonesia's Savu Sea next month, collaborating with its established local partner, Yayasan Konservasi Alam Nusantara. The proposed initiatives include autonomous surface vessels and solar-powered acoustic listening stations designed to combat illegal fishing.
"The region encompasses the coral triangle and is home to some of the most critical coral reefs worldwide. It brims with biodiversity but presents significant challenges and costs for monitoring," stated Jennifer Morris, CEO of the Nature Conservancy. While involved in these initiatives, Morris emphasized a desire not to overshadow local organizations, adding, "When we're not needed anymore, we can leave."
Thus, as Western nations retreat from climate action, Seow suggests that solutions must be sought from the Global South. "The conversation needs to happen between Asia, South America, and Africa," he indicated. "We owe it to ourselves: Global South for Global South."
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