Article · Climate Finance

Understanding Climate Finance: A Guide for Local Organisations

What grassroots groups need to know before applying for climate funds

✍️ Dr. Naveed Chaudhry · Climate Network Editorial 📅 Aug 20, 2026 ⏱ 8 min read 🌍 Global

Climate finance can look like an alphabet soup of funds, mechanisms and donors to a local organisation applying for the first time. This guide breaks down the basics.

At the international level, funds are typically channelled through multilateral mechanisms, bilateral donor programmes, or blended finance vehicles that combine public and private capital.

For grassroots organisations, the most accessible entry points are usually small-grants facilities, which often have simplified application processes compared to large multilateral funds.

Common pitfalls include underestimating the reporting requirements that come with a grant, and applying to funds whose thematic focus does not clearly match the proposed project.

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