UN Climate Body Budget Gets 10% Hike at Bonn Climate Talks, China Ups Contributions to 20%

Countries unanimously approved a 10% hike in the United Nations Framework Convention on Climate Change (UNFCCC) core budget for 2026-27, increasing it to 81.5 million euros, up from 74.1 million euros in 2024-25, reported Reuters. The core budget is funded by government contributions.

The deal, agreed by nearly 200 countries — from Japan to Saudi Arabia, to small island nations like Fiji — at UN climate negotiations in Bonn, comes despite major funding cuts at other UN agencies, triggered in part by the US withdrawing its contributions, and political pushback on ambitious climate policies in European countries.

With this deal, China's contribution rose to 20% of the new budget, up from 15% previously. Meanwhile United States remained the top contributor at 22%. However, President Donald Trump quit the UN Paris climate agreement and halted international climate funding. Bloomberg Philanthropies has pledged to fill the void left by US’ withdrawal by supporting the UNFCCC budget.

The US did not attend the UN climate talks this week in Bonn, Germany where the budget was approved.

UN climate Chief Simon Stiell welcomed the increase as "a clear signal that governments continue to see UN-convened climate cooperation as essential, even in difficult times," reported Reuters.

The UNFCCC runs annual climate negotiations among countries and helps implement deals that are made - including the 2015 Paris Agreement, which commits nearly all nations to limit global warming.

The body has faced a severe budget shortfall in recent years, due delayed payments from major players including China and the US, prompting the body to cut costs including by cancelling some events.

The UNFCC's running costs and headcount - its core budget funded 181 staff in 2025 - are smaller than some other UN bodies facing sharp funding cuts, such as the UN trade and development agency's roughly 400 staff.

Meanwhile, as reported by Reuters on May 30, the UN Secretariat, the global body's executive arm, is preparing to slash its $3.7 billion budget by 20%, according to an internal memo.

India Leads Climate Finance Fight

According to ET, India led strong interventions along with coalitions such as G77+China, the Like-Minded Developing Countries (LMDC), Alliance of Small Island States (AOSIS), Least Developed Countries (LDCs) and the African Group of Negotiators (AGN) came together to raise the issue of climate finance accountability at the ongoing SB62 Bonn climate conference.

The mobilisation of developing nations at Bonn is expected to set stage for the upcoming COP 30 in Brazil in November 2025, where a strong push is expected to include Article 9.1 of the Paris Agreement as a formal agenda item. The article highlights the obligation of developed countries to provide financial resources to support both mitigation and adaptation efforts in developing nations.