Climate Philanthropy Faces a Crisis in Multilateralism

The multilateral order that structured global climate cooperation for three decades is fraying. The Trump administration's withdrawal from 66 United Nations and international organisations in early 2026, compounded by its exit from the Paris Agreement and the UN Framework Convention on Climate Change, has created a rupture in governance and geopolitical consensus.

Institutions have been stripped of authority, leaving voluntary commitments contingent on political will. At this precarious moment, climate funders are asking what their role should be.

A System Under Strain

According to a project by consultants Janet Fleischman and Jyotsna Uppal, funded by the Hewlett Foundation, the crisis runs deeper than any single country's actions. Interviews with climate leaders revealed a sobering question: whether the multilateral system itself is still fit for purpose. The system remains relatively intact, with many countries still submitting climate plans. Yet participation does not equal effectiveness, and many commitments fall short.

New regional and voluntary coalitions of countries, cities, and companies are emerging to fill the action gap. Sarah Millar, programme director at the Climate Emergency Collaboration Group, described the scale of the challenge. "What we're trying to do here is fundamentally rewire the global economy," she said. "It's everything everywhere, all at once. And that's really hard to do."

The Gap-Filling Dilemma

Climate philanthropy has often responded to governance gaps by substituting for absent public finance. Arunabha Ghosh, founder of the think-tank CEEW, stated that philanthropy is having to fill in the gap of public finance where development assistance is failing. However, this instinct deserves scrutiny. A fundamental question is whether simply filling gaps props up a failing system or spurs the transformation needed.

Philanthropy cannot pretend its choices are inconsequential. Compounding this strategic dilemma is a closing of civic space. Civil society actors face mounting restrictions not only in the US but in countries like India, Israel, Russia, and Turkey. In the US, the Trump administration has escalated attacks on philanthropies, threatening legal investigations and the withdrawal of tax-exempt status.

Support for climate action is increasingly portrayed in some conservative circles as anti-American. Critics who emphasise fossil fuels for energy security often equate backing renewables with pro-China stances, given China's dominance in green technology manufacturing.

The Need for New Narratives

Underlying these gaps is a failure of narrative. The story of climate progress is not being written by governments. Christiana Figueres, former UN climate chief, explained the disconnect. The story of progress is being written by a plethora of other stakeholders - subnationals, finance corporations, NGOs - all of whom are doing their thing together, she said. They're writing an amazing story, and nobody's writing it and nobody's reading it and nobody's taking note of it.

Storytelling needs to be more integrated, linking climate to health, education, gender equity, and migration. Philanthropy can help make these linkages clear to policymakers and the public.

Four Directions for Action

Four directions stand out for catalytic philanthropic support in this fragmented landscape.

First, shift who gets supported and convene diverse actors. New pathways are needed to support local communities, civil society coalitions, and subnational actors implementing national plans.

Second, support compelling narratives and amplify affected voices. Listening to communities is critical for shaping a just transition that gives them real agency.

Third, engage the private sector differently. Philanthropy must work more strategically with corporate actors as partners to design how catalytic capital can flow, using new financing instruments.

Fourth, take strategic risks. Philanthropy may need to fund implementation, finance, and technology approaches that governments and financial institutions will not support.

This is a precarious moment for multilateralism and the organisations that sustain it. Yet that complexity may provide an opportunity. Philanthropy willing to ask harder questions and invest in connections between issues may do more than keep a struggling system afloat. Ailun Yang of Bloomberg Philanthropies highlighted the sector's potential role. Our main way to engage in this is by supporting smart people and innovative ideas, Yang said. Philanthropy doesn't necessarily do these things ourselves, and that is really where our superpower is.